The Australian Government introduced amendments under the 'Treasury Laws Amendment (Electric Car Discount) Bill' 2022 (Cth), exempting from fringe benefits tax (FBT) for all zero or low-emission vehicles (that do not exceed the Luxury Car Tax Threshold for fuel-efficient vehicles over the four years (1 July 2022-30 June 2026) at a projected cost of $205 million to the public sector. The Australian Government is relying on this policy reform to encourage a greater uptake of electric vehicles (EVs) and contribute to its emission reduction target. The article will examine the effectiveness of the EV FBT amendments in meeting the government's objectives and whether it is both fair and equitable to all eligible employees and not disproportionately beneficial to higher-income earners. The article finds that behavioural economic considerations are critical when reforming blunt policy instruments to influence behaviour, which means understanding the factors that influence future buyers of EVs.