50 Per Cent Capital Gains Tax Discount for Innovative Start-up Investors; Electric Car FBT Exemption Replaced by Sliding Discount System; Plug-in Hybrids No Longer Eligible for FBT Discounts
Treasury Laws Amendment (Tax Reform No. 4) Bill 2026
House of Representatives
Senate
Assent
Topics
corporate governance electric vehicles government transparency information sharing renewable energy taxation
Links to official parliament websites
Effects of this bill
If this bill passes, it means that:
People holding shares, options, or convertible notes in eligible innovative start-ups can get a 50 per cent capital gains tax discount for assets held for at least three years.
Companies wanting the innovative start-up tax discount must register with the Industry Secretary and provide annual reports on their equity.
The Industry Secretary can compel companies to provide more data to verify if they are eligible for the innovative start-up tax discount.
The Industry Secretary will publish a public register of companies registered for the innovative start-up tax discount and can share this data with the Commissioner of Taxation.
Employers and employees can be denied tax benefits or face penalties if they end existing car commitments early and immediately start new ones just to keep a fringe benefits tax (FBT) exemption.
The FBT exemption for electric cars ends for new commitments made on or after 1 April 2027 and is replaced by a discount system.
For car commitments made between 1 April 2027 and 31 March 2029, employers get a 100 per cent FBT discount if the car's base value is $75,000 or less, or a 25 per cent discount if the value is between $75,000 and the fuel-efficient car limit.
For car commitments made on or after 1 April 2029, the maximum FBT discount drops to 25 per cent for cars under the fuel-efficient car limit.
Plug-in hybrid electric vehicles are no longer eligible for FBT discounts; only battery electric and hydrogen fuel cell vehicles qualify.
To get an FBT discount, the car must be provided to a current employee. If an employee moves to a new employer, any commitment for the same car is treated as a new commitment under the rules at that time.
The Treasurer can use a legal instrument to decide if previous FBT treatments still apply to certain electric cars, but this power ends on 1 April 2032.
Employers of employees at not-for-profit hospitals or public benevolent institutions no longer need to include concessional car fringe benefits when calculating an employee's reportable fringe benefits amount.