Home charging of PHEVs – PCG 2024/2 updated

Although officially the exemption for a plug-in hybrid electric vehicle (PHEV) ended on 31 March 2025, transitional rules apply such that PHEVs that benefited from the exemption before 1 April 2025 continue to be exempt where they are provided under a financially binding commitment entered into before that date. To revisit the PHEV transitional rule click here to review our April 2025 article.

Practical Compliance Guideline PCG 2024/2 provides a simplified method for calculating electricity costs when charging electric vehicles (EVs) at home as follows:

The ATO updated PCG 2024/2 (in November 2025) to extend its scope beyond zero-emissions EVs to include PHEVs. This addressed a prior gap, as the original guideline excluded PHEVs due to their dual-fuel nature.

The update has effect from the 2025 FBT and income tax year.

Calculation of PHEV home-charging costs will be relevant to an employer who:

• provides the PHEV to an employee or their associate for private use resulting in the provision of either a car fringe benefit or a residual fringe benefit, or pays for expenses associated with the car resulting in a car expense payment benefit

• provides the PHEV to an employee or their associate who charges the electric vehicle or PHEV using electricity at a residential premises, where the electricity cost directly attributable to charging that vehicle cannot be practically segregated from the cost of running other electrical appliances in the home, and

• is required to calculate the taxable value for one or more of the following as part of their FBT obligations

– car fringe benefit

– residual fringe benefit

– car expense payment benefit

– where the electricity charging cost incurred by the employee is reimbursed by the employer, or

– the grossed-up taxable value for reporting of the reportable fringe benefits amount (RFBA) for your employee.

Calculation of PHEV home-charging costs will be relevant to an individual who:

• uses a PHEV in gaining or producing their assessable income

• incurs electricity expenses when charging their vehicle at home, and

• has kept the relevant records for the income year.

Key Changes in PCG 2024/2

• added a seven-step methodology for PHEVs to estimate electricity used for charging at home, accounting for petrol usage via manufacturer fuel economy data.
• clarified wording for zero-emission EVs vs. PHEVs.​
• new PHEV home charging rate applies retrospectively noting the PHEV FBT exemption is limited post-April 2025 to pre-existing PHEV scenarios where a binding commitment to continue providing the benefit existed at 1 April 2025.

The 7-Step Methodology

Step 1: Record actual petrol costs for the year.

Step 2: Convert to litres: petrol costs ÷ average petrol price per litre.​

Step 3: Calculate petrol kms: litres ÷ PHEV petrol consumption rate (Condition B test cycle from manufacturer).​

Step 4: Total annual kms from odometer (end reading minus start when available for private use).​

Step 5: Electricity kms = total kms (Step 4) – petrol kms (Step 3).​

Step 6: Electricity cost = electricity kms × 4.20 cents/km.

Step 7: Total fuel expenses = actual petrol costs + electricity cost.​

Transitional Approach – PHEV’s –25 FBT and income tax years

• If odometer records have not been maintained for PHEVs, as at the start or end of the 2025 FBT or income tax years, a reasonable estimate may be used based on service records, logbooks or other available information.

• If records substantiating actual petrol costs have not been maintained for PHEVs, as at the start of the 2025 FBT or income tax years, a reasonable estimate may be used based on available information.

Employers providing PHEVs to their employees are encouraged to review the updated PCG to ensure taxable values, employee contributions are calculated correctly.

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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.