Labor’s signature measure to boost electric vehicle uptake has blown out tenfold, with taxpayers spending $560 million per year to exempt one in three EV drivers from paying fringe benefits tax.
Economists have warned the cost of the tax break, which the Productivity Commission said disproportionately favours the wealthy, will continue to escalate as more Australians switch to electric vehicles.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com