Green bill to provide EV incentives to be considered

A private member’s Bill by Green Party MP Julie Anne Genter that would offer EV incentives has been drawn and will be considered by Parliament.

The Income Tax (Clean Transport FBT Exclusions) Amendment Bill was drawn from the members’ ballot and introduced to Parliament yesterday.

The Bill would exempt electric vehicles from Fringe Benefit Tax for a period of five years, to provide a financial incentive for employers to purchase new electric vehicles as company cars.

“This Bill is an opportunity for the Government to address a glaring hole in its plan to electrify the vehicle fleet and meet their own commitment to reducing carbon emissions,” Genter, the Green’s transport spokesperson, says.

“The percentage of electric vehicles coming into the country has plummeted since the Government repealed the Clean Car Discount, and the industry has warned that the high rate of Road User Charges (RUC) that will be applied to EVs from April will further disincentivise the switch to efficient, low-carbon vehicles,” she explains, echoing concerns from the industry since support was withdrawn for the type.

She notes the suggestion has history from the right side of the house.

“The EV Leadership Group established by former National Transport Minister Simon Bridges recommended this FBT exclusion policy, and National campaigned on this very policy in opposition in 2020,” she explains.

“Now they can vote for my Bill to ensure that New Zealand maintains the momentum in transitioning the fleet to low-emissions vehicles, which is an essential action needed to meet our climate commitments.”

“The majority of new vehicles imported into New Zealand are purchased by businesses, and incentivising employers will mean more EVs will become available in the second-hand market so ordinary New Zealanders can access them. The policy is unlikely to have significant revenue implications and is a temporary measure to address a critical need for climate action.

“I am thrilled the Bill was drawn; I think it’s perfect timing, given the notable absence of effective Coalition Government policies to transition to a climate-friendly transport system,” says Genter.

It is rare, but not unheard of, for a government to support private members’ bills from the opposition.