Smartgroup shares were up over 7% during the day, possibly driven by the latest EV sales data and confirmation the FBT discount on salary packaged EVs will continue in full until March 2027 before being gradually scaled back.

According to an article in the AFR, about one in six cars sold in April were fully electric models. https://www.afr.com/policy/energy-and-climate/diesel-ute-sales-fall-off-a-cliff-as-fuel-prices-bite-20260505-p5ztwb

This will be a strong tailwind for Smartgroup over the next twelve months.

I’ve shared a few paragraphs from the AFR article below:

“FCAI chief executive Tony Weber said the changes were driven in part by generous federal government tax breaks for electric vehicle purchases, which will continue in full until March next year before being gradually scaled back.”

“The [tax break] has provided important stimulus to the market, and its continuation will support the growth of EVs,” Weber said.

“The policy, which exempts drivers from fringe benefits tax if they buy an EV worth less than $91,387 via a novated lease, can save a vehicle owner tens of thousands of dollars over several years but has been criticised by tax experts for disproportionately favouring wealthier drivers.”

“Under changes announced on Tuesday, the government will modestly decrease the tax breaks for vehicles priced above $75,000 from March next year, before scaling it back more significantly in 2029.”