The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to Draft Practical Compliance Guideline PCG 2023/D1: Electric vehicle home charging rate – calculating electricity costs when charging a vehicle at an employee's or individual's home (draft PCG).
In the development of this submission, we have closely consulted with our National Fringe Benefits Tax (FBT) and Employment Taxes Technical Committee to prepare a considered response that represents the views of the broader membership of The Tax Institute.
We are of the view that the Commissioner of Taxation (Commissioner) should be granted the legislative powers to determine the appropriate rate for zero emission electric vehicles (ZEVs) through a legislative instrument. A practical compliance guideline is not an appropriate tool to overcome any shortcomings in the legislation, especially since a taxpayer’s ability to rely on the rate may be limited at the objection stage, should a dispute arise.
However, until the appropriate legislative fix is implemented, we have set out below for your consideration, our detailed comments regarding the draft PCG.