'Never turned up on a job site': EV maker hammers pampered Ram 1500, Chevrolet Silverado, Ford F-150 and Toyota Tundra owners in Australia who 'use and abuse' government ute subsidies

Polestar Australia boss Scott Maynard has opened fire on Australia's owners of American-style utes, saying they "use and abuse" FBT and LCT subsidies that are aimed at tools of the trade. 

In a stinging rebuke of government policy that favours some of the nation's biggest vehicles, as similar rebates for electrified vehicles are under the microscope, the executive suggested the Albanese Government would be better off tightening light commercial vehicle policies towards American pickup trucks.

"It's actually being used and abused in the light commercial vehicle space," Mr Maynard said. 

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"I was a tradie. That's how I started in this industry, as a tech. So I fully support the subsidy of tools of trade to our trades people. I couldn't be more supportive of it.

"But these vehicles are not even being marketed as tools of trade. You've got $200,000 American-style utes and pickup trucks marketed as towing caravans and boats, and yet they enjoy the same FBT and LCT let-off, which can be tens of thousands of taxpayers dollars, so that they can never, never turn up on a job site.

"That is entirely unjust. So if the government sets out to save some of the taxpayers' money handed over in FBT deductions, it should be done in reconciling where its support of light commercial vehicles goes, not supporting the electric vehicle industry."

Since 2022, electric vehicles positioned below the Luxury Car Tax (LCT) threshold of $91,387 for electrified vehicles, under a novated lease, were no longer eligible for Fringe Benefit Tax (FBT) obligations. Numbers crunched by the Australian Financial Review found someone who leases a $60,000 car could save as much as $12,000 per year if they opt for an EV over an ICE vehicle.

Toyota Tundra

Ford F-150

Chevrolet Silverado LTZ

Ram 1500

While spurring EV sales, the program is expected to cost $1.35 billion over the 2025/2026 financial year. The incentives are currently under review, with formal submissions closing last month.

Similarly, most utes are not subjected to FBT obligations, provided the vehicle can carry a load of one tonne or more, or carry more than eight passengers, or are not primarily designed for carrying passengers. The vehicles must only have "limited" private use. LCT – which generates as much as $1.3b annually – does not apply to “a commercial vehicle designed mainly for carrying goods and not passengers”..

Data from the Australia Institute, published in 2023, found the LCT exemption resulted in lost revenue of around $250m per annum on the sale of American pickup trucks.