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The new Labor federal government has reaffirmed its commitment to helping Australians buy electric vehicles in the October mini budget handed down this week.
There were few surprises for motorists in the budget with the Labor government already committing to these measures during the election campaign.
However, EVs are the main focus with a number of funding announcements to help increase the uptake of electric models, as well as support for the rollout of charging infrastructure.
One of the key commitments as part of treasurer Jim Chalmers’ first budget is the electric car discount that will cost taxpayers $345 million.
Under this plan the fringe benefit tax and 5.0 per cent import tax will be cut for eligible EVs, which will bring down the price of some electric models.
This measure could save an employer up to $9000 a year on an EV that costs about $50,000, or around $4700 for someone using salary sacrifice.
Eligible EVs, hydrogen fuel-cell -powered cars and plug-in hybrids will be included if their retail price is less than the luxury car tax threshold for fuel-efficient cars, which for this financial year is $84,916.
Given Australia has free-trade agreements with China, Japan, Thailand and the United States, the models most likely to be impacted by the import tariff cut will come from Europe.
As well as encouraging private buyers to buy EVs, the government says its own fleet purchases will be 75 per cent electric by 2025. This will have the flow-on effect of the vehicles eventually ending up on the second-hand market as more affordable used EV alternatives for private buyers.
The government has committed $275.4 million over six years to set up the Driving the Nation Fund that’s designed to reduce transport emissions, with a total budget of $500 million.
Just under $40 million from this fund will be used to build a national EV charging network, with 117 fast charging stations to roll out across the country in partnership with New South Wales automobile club, the NRMA.
Some $146 million will be allocated to the re-established Australian Renewable Energy Agency (ARENA) to co-invest in projects designed to reduce transport emissions.
And just under $90 million from the Driving the Nation Fund will go to the Hydrogen Highways initiative to fund hydrogen refuelling stations on some of the busiest freight routes, starting with George Town in Tasmania.
The governing body of the country’s state and territory-based automobile clubs, the Australian Automobile Association (AAA), will get $14 million to conduct “real-world” emissions and fuel consumption testing.
There was no commitment from the federal government for mandated vehicle emissions standards as part of this mini budget.
According to Doug Wyllie, manager of public affairs for the peak body representing Australia’s car importers, the Federal Chamber of Automotive Industries (FCAI), there are positive measures in the budget.
“This budget confirms previously announced policy decisions to encourage the uptake of zero and low emission vehicles. Automotive manufacturers are encouraged by this direction, and look forward to continuing to engage with Government on practical and achievable measures to de-carbonise Australia’s light vehicle sector.”
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