What the guidance does
A practical estimate when household charging cannot be separately measured.
ATO Practical Compliance Guideline PCG 2024/2 provides a way to estimate residential electricity used to charge an EV when the charging cost cannot be isolated from the household electricity bill. It explains when the ATO will accept the simplified methodology; it is not a binding public ruling.
For property professionals discussing vehicle finance or ownership structures—and for homeowners using an EV for work—the safest first step is to identify the owner or holder of the vehicle, its tax classification, its private availability and the expense method being used.
At a glance
Three common situations
Employer-provided EV
An employer may use 4.20¢ per relevant kilometre to estimate an employee’s eligible home-charging costs for reimbursement and relevant FBT calculations.
Review the underlying car benefit, EV exemption eligibility, reportable fringe benefits and any separately provided home charger.Employee’s private EV
Use either the ordinary car cents-per-kilometre method or a logbook/actual-cost approach, where PCG 2024/2 may estimate the electricity component.
The ordinary car cents-per-kilometre rate already includes electricity. Do not add a separate 4.20¢ amount.Self-employed or business EV
A sole trader may generally use the ordinary cents-per-kilometre or logbook/actual-cost method where the EV meets the tax definition of a car.
Entity type, vehicle definition, private use and substantiation determine the result.Employer-provided vehicles
Home electricity can interact with FBT in several ways.
Where an employee charges an employer-provided EV at home, the employer can estimate the electricity as relevant kilometres multiplied by 4.20¢. A reimbursement of charging electricity is generally a car-expense benefit, with electricity treated as fuel for FBT purposes.
When provided in connection with a car benefit, the associated electricity benefit may be exempt from FBT even where the underlying EV car benefit is not exempt. If the EV car exemption applies, the employer may still need to calculate the notional taxable value for reportable fringe benefits purposes, unless an exclusion applies.
Employee-paid electricity may also be relevant as a recipient contribution where the statutory requirements and evidence are satisfied.
Privately owned vehicles
Choose one supportable method and avoid double counting.
Ordinary cents per kilometre
Use the general ATO car rate applicable to the income year, subject to the normal annual kilometre limit. That rate already covers electricity and all other car running costs, so no additional 4.20¢ home-charging amount is added.
Ordinary home-to-work travel remains private unless a recognised exception applies.
Logbook or actual costs
Estimate total eligible home-charging electricity under PCG 2024/2, combine it with other eligible vehicle costs and then apply the properly supported work-use percentage.
Fact-sheet example: 18,000 total kilometres × 4.20¢ gives $756 estimated home electricity. At 35% work use, the electricity component is $264.60 before considering other vehicle expenses.
Business and self-employed vehicles
Ownership structure and private availability matter.
Under an actual-cost method, a sole trader applies the business-use percentage to the PCG electricity amount. A properly supported vehicle with 100% business use may allow the full eligible amount.
For a company or trust, the entity claims its vehicle expenses. Private availability or use by an employee or director must be reviewed under the FBT rules.
Different rules can apply where a vehicle is not a “car” for tax purposes—for example, certain vehicles designed to carry at least one tonne. Do not assume the passenger-car rules apply without checking the vehicle classification.
Calculation & evidence
Keep the records behind the number.
Then apply any required business-use percentage and make sure commercial charging is not counted twice.
- Odometer readingsOpening and closing readings for the relevant FBT or income year.
- Residential electricity billAt least one bill showing an electricity expense was incurred.
- Home-charging evidenceEvidence the vehicle can be and was charged at the residence.
- Logbook where requiredA valid logbook for the logbook or operating-cost method.
- Commercial charging recordsInvoices and reliable home-charging percentages where relevant.
Watch-outs
Commercial charging, solar and plug-in hybrids need extra care.
Commercial charging: costs cannot be double counted. Separate commercial charging may be recognised where reliable vehicle data identifies the home-charging proportion; otherwise use a defensible, consistent approach under the PCG.
Solar: the taxpayer must incur an electricity expense. Where charging is purely solar and there is no relevant electricity cost, the safe-harbour conditions should not be assumed to be satisfied.
Plug-in hybrid electric vehicles: PCG 2024/2 covers PHEVs from the applicable 2025 FBT and income years using a multi-step method that separates petrol and electric kilometres. The 4.20¢ rate applies to the calculated electric kilometres, not automatically to all kilometres.
The general FBT exemption for newly provided PHEVs ended on 1 April 2025, subject to limited transitional arrangements for qualifying pre-existing financially binding commitments.
Conversation checklist
Questions to resolve before relying on a treatment
- Who owns or holds the vehicle: employee, employer, sole trader, company or trust?
- Is it a battery EV, PHEV, or a vehicle outside the tax definition of a car?
- Was the vehicle available for private use, and does the EV car FBT exemption apply?
- Is the general car cents-per-kilometre method or an actual/logbook method being used?
- Are odometer, electricity bill, charging, logbook and commercial charging records retained?
- Was a home charging station supplied or reimbursed separately?
- Has any reimbursement, recipient contribution, deduction or commercial charging cost been counted twice?
Take the guide with you
Download the EV home-charging fact sheet.
Download the PDF fact sheet.
Primary references
ATO guidance
Advice for your circumstances
Before you claim, reimburse or report, check the detail.
Demeter can help review the vehicle, ownership structure, use, records and applicable year so your position is supported and does not count the same cost twice.
General information disclaimer: This material provides general accounting and tax information about EV home-charging costs. It does not replace advice based on your ownership structure, vehicle, usage, records, income year or FBT circumstances. Eligibility and treatment should be confirmed before any claim, reimbursement or FBT position is implemented.