The 2023 luxury Car Tax Threshold: the newest affordable electric vehicles

Good news for Australians interested in low-cost electric vehicles: the luxury car tax threshold has been raised for the new financial year! Supporting both the environment and Australians’ wallets, the federal government introduced a law last year exempting electric vehicles priced under the luxury car tax threshold from paying fringe benefits tax (FBT). This means that electric vehicles could now be found to be much more affordable, depending on the car and your individual situation. This article will explore the 2023 luxury car tax threshold and introduce four newly eligible models that offer a compelling combination of performance, range, and affordability.

What is the 2023 luxury car tax threshold?

The luxury car tax threshold for the 23/24 financial year is now set at $89,332. This threshold determines the maximum value at which a car is exempt from the luxury car tax (LCT). Any vehicle with an LCT value exceeding this threshold attracts an LCT rate of 33%. The increase in the luxury car threshold for 2023 opens up new opportunities for working Australians to explore a wider range of electric vehicles without incurring additional taxes.

What was the 2022 luxury car tax threshold?

In 2022, the luxury car tax threshold stood at $89,332. This lower threshold meant that vehicles with a higher value were subject to the luxury car tax. However, with the increase in the threshold for 2023, more electric vehicles now fall within the exempt category, providing an incentive for Australians to consider these environmentally friendly options.

The car models now available

Tesla Model 3 Performance

TeslaModel 3Model 3 Long RangeModel 3 Performance
Range491 km602 km 547 km
Battery50 kWh 82 kWh82 kWh
Acceleration6.1 s4.4 s3.3 s
Torque375 Nm510 Nm640 Nm
Drive-trainRear WheelDual motor all-wheelDual motor all-wheel

The Tesla Model 3 Performance, priced at $87,300, is now eligible for the electric car discount. With an impressive acceleration of 3.3 seconds from 0 to 100 km/h, a big step up from the base model’s 6.1 seconds, the Model 3 Performance delivers an exhilarating drive. 

With the Tesla Model 3’s sleek design and signature glass roof, this electric marvel not only delivers exhilarating acceleration but also immerses passengers in a bright and spacious environment, seamlessly connecting them with the world outside the car. - Justin Miller, Flare EV Expert

See how Melbourne driver Danny was able to get a brand new Tesla earlier this year:

Mercedes-Benz EQB

Mercedes-BenzEQB 250 AutoEQB 350 Auto
Range507 km445 km
Battery66.5 kWh66.5 kWh
Acceleration9.2 s6.2 s
Power~140 kW~215 kW
Torque 385 Nm520 Nm
Drive-trainFront WheelFour Wheel
The Mercedes-Benz EQB 250, priced at $87,800, joins the eligible electric vehicle list. With a range of 507 km, rose gold-coloured elements and the backlit trim, the EQB 250 Auto offers luxury and sustainability in one elegant package. Its refined interior, advanced safety features, and the renowned craftsmanship of Mercedes-Benz make it an enticing choice for those seeking a premium electric vehicle.

The EQB’s large load compartment provides ample room for all your belongings, and with the ability to fold and slide the rear seats, it offers unmatched adaptability. Families will appreciate the four ISOFIX child seat holders, ensuring the utmost safety and convenience for our littlest passengers.

Kia EV6

KiaEV6EV6 GT-Line EV6 GT-LineEV6 GT
Range 528 km504 km484 km424 km
Battery 77.4 kWh77.4 kWh77.4 kWh77.4 kWh
Acceleration7.3 s7.3 s 5.2 s3.5 s
Power168 kW168 kW 239 kW430 kW
Torque 350 Nm 350 Nm605 Nm740 Nm
Drive-trainRear wheelRear wheelAll wheelAll wheel
The Kia EV6 GT-Line model, priced at $87,590, is now eligible for the electric car discount. The three time ‘Best Car of 2022’ award winner has a range of 484 km, 239kW of power and 605 Nm torque, delivering both style and performance. Its sleek design, advanced features, and comprehensive suite of safety technologies make it a compelling choice for those seeking a balance between aesthetics and sustainable driving.

The Kia EV6’s combined cluster and infotainment display takes the driving experience to a whole new level, offering a seamless and immersive interface that keeps you connected and in control. Get ready to embark on a journey of innovation and connectivity with the Kia EV6, where every drive becomes a captivating and immersive experience.

Hyundai Ioniq 6

HyundaiIoniq 6 Dynamiq Ioniq 6 Techniq Ioniq 6 Epiq
Battery77.4 kWh 77.4 kWh77.4 kWh
Acceleration 7.4 s5.1 s5.1 s
Power168 kW239 kW239 kW
Drive-trainRear wheelAll wheelAll wheel
The Hyundai Ioniq 6 Epiq, priced at $88,000, offers an upgraded option within the luxury car tax threshold. With a range of 519 km and an extra charging port that can power your e-bike, portable fridge or camping gear, the Epiq is ready for any outdoor adventure. Its sleek design, advanced technologies, and luxurious driving environment showcase Hyundai’s commitment to sustainable mobility.

The Epiq's ultra-fast charging capabilities are truly remarkable, allowing you to gain an incredible 100km of range from just a 5-minute charge. Say goodbye to range anxiety and embrace the freedom of seamless charging. With the Hyundai Ioniq Epiq, every journey becomes a fast and exhilarating adventure.

These newly eligible electric vehicles present exciting options for Australians in the market for a new car. These models provide an attractive balance of power, performance, and design while still falling below the luxury car tax threshold. By opting for these electric vehicles, Australians can contribute to a greener future while enjoying the benefits of cutting-edge technology and impressive driving experiences.

Get the car you want, now

We are dedicated to helping our customers get the most out of their budget without compromising on an exceptional driving experience. Whether you prioritise safety and reliability or crave a blend of excitement and functionality, our team at Flare is committed to assisting you in discovering the ideal car that aligns with your unique lifestyle. Experience the joy of driving the perfect vehicle with Flare.

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