Polestar Australia The chief executive has delivered a further blow to the federal government and those opposed to electric vehicle incentives, arguing that tax breaks for commercial vehicles such as crew cabs “cost taxpayers significantly more money”.
In conversation with Daily SparkzPolestar Cars Australia managing director Scott Maynard said it was “really disappointing” that the government was reviewing Fringe Benefits Tax (FBT) rebates for electric vehicle buyers, arguing it contradicted the government’s goals to reduce emissions from private transport.
“We need continued support to encourage the purchase of (electric) vehicles and I see this as no different to the huge support being charged to the taxpayer for the introduction of light commercial vehicles, for example, which would cost the state and therefore the taxpayer significantly more money than the electric vehicle program,” Mr Maynard said.
Daily Sparkz You can save thousands on a new car. Click Here to get a great deal.
“It is really disappointing that the government and the Treasury are reviewing the FBT (electric vehicle) program based not on the success of the program but the cost of the program and it seems somewhat inconsistent with the outcome.”
“The government has set targets for electric vehicle adoption and we are still not able to meet those targets. We are on the right track, but we are not there yet and it seems like an inopportune time to take our foot off the gas and start reducing support for Australian consumers who want to switch to a zero-emission vehicle.”
“It is in the Government’s best interests and its stated objectives to continue this support. And reducing it for cost reasons just doesn’t seem right – which is why we are committed to ensuring the FBT incentive for electric car buyers is maintained,” Mr Maynard continued.
“Similarly, the New Vehicle Efficiency Standard (NVES) and FBT support work hand in hand. The NVES program has worked wonderfully to encourage manufacturers to offer more electrified alternatives to Australian drivers.”
“We are now seeing manufacturers tap into their international vehicle catalog to provide more choice and we are now seeing almost 150 electrified models on offer in Australia, which is significantly different to the landscape and choice drivers had just six to 12 months ago.”
Mr Maynard’s latest comments come after he said last month: “This is not the time to change attitudes on FBT relief for electric vehicles” after the Australian government announced last December that it would review its electric vehicle support program.
“The government’s published target is for 50 percent of the market to buy electric vehicles by 2035. They are far from that, and they are not on track to get there,” he said.
Instead, Mr Maynard called on the Government to look at sales incentives for internal combustion engine vehicles such as diesel-powered crew cabs, which can qualify for FBT exemptions if the vehicles provided to employees by employers are only used for “limited personal use”.
Therefore, drivers must keep accurate records to prove their work vehicle is not being used “as a family taxi” or “for personal weekend trips” – according to the Australian Taxation Office – in order to be eligible for the FBT exemption.
“We all accept that electric vehicles now offer Australian drivers ample choice, lower running costs and vehicles that are fun and easy to own, and we all accept that the cleaner air they provide us brings tangible and measurable health benefits,” Mr Maynard said last month.
“Yet we don’t think twice about the billions of dollars the government is pouring into selling crew cabs, to the point where we now sell one and a half times as many vehicles as we have tradespeople.”
“We sell these things with an FBT subsidy for prices over $200,000. That seems to me to be a much easier win than focusing on a part of the market that’s doing good things but not enough of them.”
Commercial vehicles such as crew cabs are also not subject to the Luxury Car Tax (LCT), like many Polestar electric vehicles, which impose a 33 percent tax on every dollar spent above the defined luxury car price threshold.
“Fuel efficient cars” are subject to a higher threshold under the government definition – currently $91,397 versus $80,567 for non-“fuel efficient cars” – and that definition was recently revised to include a vehicle that uses less than 3.5L/100km of fuel on the combined test cycle.
As recently as the 2022/23 financial year, the instant asset write-off system allowed companies to claim new commercial vehicles worth up to $150,000 for both new and used vehicles. As part of the 2023-25 budget, this amount was recently reduced to $20,000.
In 2025, light commercial vehicle deliveries accounted for 273,229 deliveries in Australia, while electric vehicles accounted for 103,270 new registrations. Electric vehicles’ market share of all new vehicles was 8.3 percent in 2025, up from 7.4 percent in 2024.
The growth in EV and PHEV sales has been attributed – at least in part – to government incentives such as FBT breaks for renewed leases. Nevertheless, the current market share is well below the government’s goal of reaching 50 percent in nine years.
Let us know what you think in the comments!
MORE: Discover the Polestar showroom
