NZ should learn from Australia’s EV drive

New South Wales and Victoria are both proposing subsidies and other measures to help people into EVs.

Drive Electric chair Mark Gilbert believes what’s happening in Australia might “help shape some thinking in Wellington”.

“This could help bring about change – but policy direction is needed.”

Gilbert says the talk around New South Wales and Victoria introducing measures to assist EV uptake is “a bit like Auckland and Wellington doing something different”.

“I don’t think car companies are that interested in the regional politics,” says Gilbert, adding he believes the national view is more important to them.

The Australian discussion around EV incentives is more positive than earlier talk about EV penalties (EV road user charges), he says.

“Good on Behyad Jafari (Electric Vehicle Council chief executive) for his efforts – perseverance is paying off,” Gilbert adds.

He points out the Australian moves can only help New Zealand.

Drive Electric has long pushed for a national EV plan and Gilbert says policy decisions are needed.

He explains that Australia has a different vehicle tax structure to New Zealand and Australia can therefore “give a bit up”.

Gilbert’s comments follow news that New South Wales transport minister Andrew Constance is reported as saying its government should not introduce a special EV levy until EVs comprise 40 to 50% of the car market.

Constance has also proposed waiving stamp duty, giving EVs access to transit lanes, and subsidised parking for electric cars.

He comments in The Sydney Morning Herald that just such a raft of new measures supporting EVs are proposed in the upcoming state budget (normally due around mid-June).

“At this point in time the public interest is going to be much better served by rapid electric vehicle uptake than by skimming a little extra tax from the few EVs that are already registered,” Jafari says.

Jafari says it’s a great opportunity for NSW.

“Well-targeted subsidies now, as seen elsewhere across the globe, would create a boom in EV sales,” he adds.

“Then, once the state starts capturing the benefits from fleet electrification, that would be the perfect time to start introducing smart road user charges.”

Meanwhile, Victoria has also announced EV subsidies and targets, aiming to having half of all new car sales electric by 2030.

The Andrews Government has announced it will provide 20,000 subsidies of up to $3000 for new EV purchases under $69,000, as part of a $100 million plan to encourage EV sales.

Victoria will spend $19 million on new EV charging stations and $10 million to expand the government EV fleet by 400 cars within two years, plus it will establish an expert advisory panel regarding policies and infrastructure needed to meet the 50% target.

While the Electric Vehicle Council and others have previously criticised the Victorian Government for announcing a tax on EV use, Jafari says the council has advanced a range of suggestions on how to improve Victoria’s EV tax, from staging its introduction from 2030 to limiting its impact to ensure electric car drivers pay less in tax than internal combustion engine (ICE) vehicles.

“The electric vehicle industry stands ready to assist the Victorian Government to get these policy settings right.”

Meanwhile, the Federal Chamber of Automotive Industries (FCAI) has welcomed both states’ moves on EVs, its chief executive Tony Weber saying they are keen to work further with the Victorian government and others, meanwhile suggesting a nationally consistent and efficient approach to road user charging.

Weber says governments need to overhaul “outdated practices” and that a unified and simplified road user charging system could replace other vehicle charges and help pay for roads and infrastructure.

Australian Automobile Association managing director Michael Bradley says drivers don’t want a patchwork of different policies that deliver different vehicles and differing car prices into different states.