Andrew McLachlan (SA, Deputy-President) Share this | Link to this | Hansard source

The question that we're currently considering is that amendments (1) and (2) on sheet 1745, revised, , moved by Senator David Pocock, be agreed to.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

One further question came to me as I was riding my bike to parliament this morning: are electric bicycles covered under this legislation? It would seem to me that, if you're offering fringe benefits tax exemptions, that would be a sensible thing. A lot of people are choosing to purchase an electric bike rather than a second car, and it's something that we really should be encouraging. Certainly pedal-powered—human-powered—bicycles are the ultimate zero emissions vehicles. Electric bicycles, of course, if they are powered by renewable energy, similarly, are zero emissions vehicles.

Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I do appreciate the question, Senator Rice. You're right that there are a range of ways in which we can reduce transport emissions, and electric bicycles are one of many options that would assist us in reducing emissions from the transport sector. I'll seek advice from officials about the applicability of the measure to electric bicycles, but, my baseline observation is that the measure seeks to adjust an existing set of arrangements that apply to the way that fringe benefits tax acts when an employer makes a car available for the private use of an employee. The answer to your question is contingent on whether those existing arrangements apply at the moment to electric bicycles, and I will seek some advice and come back to you shortly.

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

I understand there are a number of Australian companies converting internal combustion engine vehicles to become EVs for fleets and for the mining sector. I want to confirm that they will be able to access this FBT discount.

Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

Thanks very much, Senator Pocock. I appreciate your interest in this area. Essentially, the eligibility of a vehicle is determined by the eligibility criteria. This measure applies only to cars, so it would be dependent on the circumstances—principally on whether or not the vehicle that was thus created was a car for the purposes of fringe benefits tax. As I understand it, there are a set of thresholds that define 'a car' and distinguish it from a more heavy-purpose vehicle and I understand that, among those criteria, is carrying capacity of one tonne. So it would be dependent on the specific vehicle being manufactured or produced.

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

But, if they are road vehicles, they will be covered—a vehicle like a HiLux and those sorts of vehicles?

Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

It depends on whether it meets the definition of 'a car' for the purposes of fringe benefits tax. It would also, of course, need to be under the luxury car tax threshold, which is one of the other criteria that applies to eligibility for this measure.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

I am interested in whether we have a response to my question. If electric bicycles aren't covered under this legislation, would the government favourably consider amendments to include electric bicycles to also be available under this fringe benefits tax measure?

Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I'm advised that, because these arrangements would not ordinarily apply to an electric bicycle, we wouldn't expect that the measure before the Senate today would provide benefits for people who have an electric bicycle. But in answer to your broader question about whether the government is interested in the contribution that electric bicycles might make to reducing transport emissions, that would be something we would contemplate as part of the broader electric vehicles strategy. You'll know, I think, that the government has commenced consultation on that. We've received many hundreds of submissions and we're working through those at the moment.

The CHAIR: The question before the chair is that amendments (1) and (2) on sheet 1745, revised, as moved by Senator David Pocock, be agreed to.