Kia Australia CEO urges end to EV tax breaks despite market success

Damien Meredith, CEO of Kia Australia, has called for an end to the government's fringe benefits tax (FBT) exemption on electric vehicles (EVs). His position is unexpected, given Kia's strong performance in the EV market—ranking third in Australian sales by 2025. Meredith argues that incentives should now give way to market competition and new policies like road user charges.

The FBT exemption, introduced in 2022, has helped sell over 100,000 EVs under the Luxury Car Tax threshold when bought through novated leases. While no precise figures exist on its impact compared to other incentives, the scheme has clearly boosted uptake. Now, the federal government is reviewing the exemption, with the Australian Centre for Evaluation leading the assessment.

Meredith supports phasing out the FBT break but backs alternative measures to cut emissions. He endorses the National Vehicle Efficiency Standard (NVES) for reducing CO₂ and accelerating the shift from internal combustion engines. To offset lost fuel tax revenue as petrol sales fall, he also proposes a road user charge for all vehicles.

Despite Kia's success in EV sales, Meredith insists the market should now drive demand without subsidies. His stance reflects confidence in growing consumer interest and the need for sustainable transport funding models.

The review of the FBT exemption will determine whether the incentive continues beyond its current terms. If removed, EV buyers may face higher costs, but policies like the NVES and road pricing could reshape the stock market today.