Electric Vehicle Council welcomes Labor’s national electric vehicle plan

The Electric Vehicle Council welcomes the Australian Labor Party’s pledge to make electric vehicles more affordable.

Labor has undertaken to introduce an Electric Car Discount to make electric cars cheaper for Australians.

As part of the discount, Labor would exempt many electric cars from:

  • Import tariffs – a five per cent tax on some imported electric cars;
  • Fringe benefits tax – a 47 per cent tax on electric cars that are provided through work for private use

These exemptions will be available to all electric cars below the luxury car tax threshold for fuel efficient vehicles ($77,565 in 2020-21).

Electric Vehicle Council chief executive Behyad Jafari applauded the ALP’s announcement.

“Australians want to make the switch to electric vehicles, but the lack of leadership nationally has limited their options,” Jafari said.

“Electric vehicles are cheaper to run, require less maintenance and are better for the environment. It is only government inaction that is causing us to trail the rest of the world in electric vehicle uptake.

“This policy would encourage car manufacturers to import and supply more affordable electric models in Australia. This makes it a win for the environment and a win for fairness.

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

“Unlike Victorian Labor, which is making electric vehicles more expensive with an unnecessary and premature electric vehicle tax, the federal ALP has steered in the right direction.”

Labor has also promised to work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy, including consideration of:

  • further measures to increase electric car sales and infrastructure;
  • policy settings to encourage Australian manufacturing of electric car components (especially batteries) and possibly cars themselves; and
  • ways to address the revenue and policy implications of declining fuel excise
  • consider how the Commonwealth’s existing investment in infrastructure can be leveraged to increase charging stations across the country; and
  • consider how other existing Commonwealth investments, including in its fleet, property and leases, can also be leveraged.

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