Electric car reduction ‘on the ballot in the next elections

The Labor Party today unveiled a plan to reduce taxes on electric vehicles to encourage more Australians to buy them.

Speaking at the party National Conference Wednesday, Federal Opposition Leader Anthony Albanese and Shadow Climate Change Minister Chris Bowen unveiled their plan for electric vehicles.

According to the ALP, it will reduce the import tariff (aka the luxury car tax, or LCT) on electric vehicles valued at less than $ 77,565 and exempts them from the tax on employee benefits, a tax of 47% on cars supplied through works for private use.

This plan is designed to reduce the purchase prices of electric cars and increase the size of Australia’s fleet: Australia continues to lag behind other countries largely due to its lack of infrastructure. electric vehicles and government help to buy them.

Electric vehicles (EVs) represent 0.7% of total Australian car sales, while in market-leading countries such as Norway and Iceland, they represent 75% and 32.2% of sales respectively.

“By lowering upfront costs, Labor’s cut on electric cars will encourage adoption, lowering fuel and transportation costs for households and lowering emissions at the same time,” the party said.

“Labor’s Electric Car Discount will encourage automakers to provide more affordable electric vehicles to Australia, which in turn will increase competition, lower prices and provide consumers with more choice. “

Chris Bowen said the policy will lower government taxes on electric vehicles and lower daily transportation costs and emissions for Australian families.

Related: Can You Save Money With Electric Cars?

Looking for a new “green” car? The table below shows auto loans with some of the lowest interest rates in the market for fuel efficient vehicles.

Automotive organizations welcome policy proposal

These tax changes, which are expected to cost around $ 200 million in lost revenue over three years, could have a big influence on the election after what happened in 2019.

Then-opposition leader Bill Shorten had promised that half of all new cars sold in Australia by 2030 would be electric, and the government in response claimed the proposal was a “war on weekends”.

But some members of the government may have changed their minds on electric vehicles lately, although the roadmap for electric vehicles released by Energy Minister Angus Taylor still offers very few financial incentives.

Outside of the two main parties, however, auto organizations have so far welcomed the Labor Party’s proposal.

The Federal Chamber of Automotive Industries (FCAI), Australia’s leading automotive body, said such a proposal is critical right now and the industry is “ready and willing” to expand its fleet at low emissions.

“Australia is lagging behind the rest of the world in a long-term vision for the continued penetration of low-emission vehicles,” said Tony Weber, CEO of FCAI.

“The automotive industry has seen around the world that strong signals around targets, good infrastructure policy and incentives from national governments are contributing to positive results on the introduction of low emission vehicles.

“Positive signals like this can encourage global automotive brands to increase the choice of low-emission vehicles available in our market, which in turn increases the adoption of electrified vehicles available to customers.”

Electric Vehicle Council (EVC) General Manager Behyad Jafari said it was a victory for the environment and for fairness.

“Electric vehicles are cheaper to use, require less maintenance and are better for the environment. This policy would encourage automakers to import and supply more affordable electric models to Australia, ”Jafari said.

“This is the kind of sensible action that has been taken by world leaders on all sides of politics. It is proven to work in making electric vehicles more affordable for more Australians. “

No direct incentives for customers – yet

While the proposal has been welcomed by some industry bodies, it still lacks direct incentives for customers to purchase electric vehicles, although senior party officials have said more announcements may come. .

Direct incentives include things like cash grants from the government to buy electric cars or cheaper loans, and are generally seen by experts as the key way to increase adoption of electric vehicles.

The ACT government for example offers two years of free enrollment and 0% loans up to $ 15,000.

They are also very popular, with research from the Australia Institute showing that two in three Australians (62%) agree that the government should introduce subsidies for the purchase of electric vehicles.

It was not divided by party either, at least in the major parties: 65% of coalition voters and 64% of Labor voters supported these incentives.

“The government may be dragging its heels on electric vehicle policy, but Australians, including Coalition voters, are ready to make the change,” said Richie Merzian, director of climate and energy at the Australia Institute.

“Australians want the government to make it easier for them to get behind the wheel of an electric vehicle, and for the sale of gasoline cars to be phased out as soon as possible.

“It is time to supercharge the electric vehicle policy in Australia, but when it comes to supporting the transportation technologies of the future, this government has its foot on the brakes.”

EV surveys

The state government of Victoria recently did the opposite, announcing a so-called ‘road tax on electric vehicles‘which Mr Jahari called “uniquely hostile”.

“Unlike Victorian Labor, which makes electric vehicles more expensive with an unnecessary and premature electric vehicle tax, the federal PLA has taken the right direction,” he said.

Photo by Vlad Tchompalov on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four banks, the Top 10 customer-owned institutions, and Australia’s largest non-banks:

Products from some vendors may not be available in all states.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*The Comparison rate is based on a loan of $ 30,000 over 5 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees, or other loan amounts may result in a different comparison rate.

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