Member Q&A: Use of employer charging station to charge private electric vehicle

Question

We have installed electric vehicle charging stations on our business premises. We understand that if employees charge their employer held electric vehicles at these stations the electricity provided is an exempt benefit. What is the situation if an employee charges their private vehicle at one of charging stations?

Answer

By allowing employees to charge their private vehicles a benefit is being provided in the form of free electricity. This would most likely constitute a residual benefit.

There is no specific exemption we are aware of but if this type of charging is ad hoc per employee during the FBT year there would be scope to argue the minor benefit exemption may apply.

If the charging is regular meaning the minor benefit exemption is not available then a taxable value will need to be determined per employee and this will be problematical given the current cent per kilometre rate published by the ATO (in PCG 2024/2) is only in respect of home charging.

We understand the ATO may soon be updating guidance on a variety of issues related to electrical vehicles and it is hope this issue is one of them (with a simple solution provided like the one in PCG 2024/2).

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This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.