EV industry welcomes Labor plan to accelerate Australia’s EV uptake

The Electric Vehicle Council says Labor’s ‘Powering Australia’ plan to accelerate EV uptake is “well overdue for Australia”.

The policy includes a National Electric Vehicle Strategy and the introduction of an “Electric Car Discount”.

It’s great to see a political party recognise the massive opportunity EVs present for Australia, EVC chief executive Behyad Jafari says.

“Labor’s plan for a National Electric Vehicle Policy is well overdue for Australia; the Electric Vehicle Council is ready and eager to support its development,” he adds.

“Working with industry will be critical in creating a plan that maximises the enormous benefits of electric vehicles.

“Australia should be building batteries and electric vehicles, but we have so far been let down by a lack of ambition at a federal level,” Jafari explains.

“Left unchecked, these manufacturing opportunities and their associated jobs will go elsewhere.

“It’s a welcome development to see the debate now shifting to how to embrace the future of electric vehicles in Australia.”

Jafari says that making it easier for Australians to switch to EVs through discounts will help catch up to the rest of the world.

He believes that Labor’s policy, if implemented, will make Australia’s streets cleaner and quieter, lower health costs, reduce carbon emissions and break the country’s dependence on foreign oil.

The Federal Chamber of Automotive Industries (FCAI) says ALP’s Powering Australia plan is a step forward around lowering vehicle emissions.

“Australia is lagging the rest of the world when it comes to a long-term vision for the continued penetration of low emission vehicles,” FCAI chief executive Tony Weber says.

“Signals like this can encourage global car 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. However, a CO2 vehicle emissions standard would send a stronger signal.”

A Labor Government will introduce an Electric Car Discount to make EVs cheaper so more families can afford them and reduce emissions, the Australian Labor Party (ALP) says.

It would exempt many electric cars from import tariffs – a 5% tax on some imported electric cars; and fringe benefits tax – a 47% 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 (A$77,565 in 2020-2021), ALP says.

It believes this cut-off will encourage car manufacturers to import and supply more affordable electric models in Australia.

A Labor Government will also work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy.

The strategy includes 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 policy implications of declining fuel excise.

It would 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.

The EVC estimates that a A$50,000 model (such as the Nissan Leaf) will be more than A$2000 cheaper as a result of removing the import tariff.

If a A$50,000 model is provided through employment arrangements, Labor’s fringe benefits tax exemption will save employers up to A$9000 a year. Often FBT is passed on to employees – and those employees will benefit directly from Labor’s policy, ALP says.

Savings will be even higher for more expensive models (up to the luxury car tax threshold).

Electric cars are also cheaper to run and maintain. For example, Nissan estimates that a commuter in New South Wales can save A$30 a week by switching from a petrol car to its Leaf model.

Labor’s Electric Car Discount is due to begin on July 1, 2022, and be reviewed after three years in light of electric car take up at that time, the ALP estimating these incentives will cost around A$200 million over three years.

Under its Powering Australia plan, ALP proposes reducing Australia’s emissions by 43% on 2005 levels by 2030, net zero emissions by 2050, creating 604,000 jobs (especially in renewable energy), expecting about A$76 billion investment, cutting household and business power bills by A$275 a year by 2025 (including upgrading the grid and more solar), helping provide 400 community batteries, and more.

It proposes allocating up to A$3 billion from Labor’s National Reconstruction Fund to invest in clean energy component manufacturing, hydrogen electrolysers and fuel switching, green metals, agricultural methane reduction and waste reduction.

The Australian federal election will be held on or before May 21, 2022.