EV Adoption in Australia Still Dominated by High-Income Areas, Study Finds
NIEIR (National Institute of Industry and Economic Research)
- EV ownership in Australia is concentrated in wealthy metropolitan areas, with average EV-owning households in Local Government Areas earning around $150,000
- Metropolitan areas have approximately four times higher EV penetration (1.52%) compared to rural regions (0.39%)
- The 2023 Fringe Benefits Tax exemption has had limited success in expanding EV adoption beyond high-income households
- EV registrations increased significantly from 79,034 in January 2023 to 259,208 by January 2025
- EV presence has expanded from 40% of Local Government Areas in 2017 to 83% in 2025
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The average Australian EV owner lives in a community earning $150,000 a year — putting them in the top 22 per cent of the country's neighbourhoods by household income.
NIEIR's new analysis of seven years of registration data finds that pattern holding firm — even as EV sales accelerate across the country. |
The National Institute of Economic and Industry Research (NIEIR) today released analysis of national motor vehicle registration data showing that EV ownership is growing fast — but wealthier, metropolitan households continue to drive the transition.
"This looks very much like the early trajectory of rooftop solar," said Brad Vakulcyzk from NIEIR. "Higher-income households move first, costs fall, and the technology gradually reaches everyone. We're watching the same curve play out with EVs — but policy settings will determine how quickly that happens."
EVs are growing fast — the numbers are striking
Australia's EV fleet more than tripled in two years. National BEV registrations climbed from 79,034 vehicles in January 2023 to 259,208 by January 2025, with buyers adding an estimated further 100,000 vehicles during 2025 alone.
EVs are also reaching more communities. In 2017, only 40 per cent of Australian Local Government Areas recorded any EV registrations. By 2025, 83 per cent did — a sign that adoption is spreading well beyond the early-adopter suburbs.
But city and country still live in different worlds
Spread the numbers across region types and a sharp divide emerges:
|
Region Type |
EV Share of Vehicles |
|
Metropolitan LGAs |
1.52% |
|
Regional LGAs |
0.89% |
|
Rural LGAs |
0.39% |
City dwellers are four times more likely to own an EV than rural Australians. Sydney leads the pack — Ku-ring-gai, Mosman, Willoughby and Woollahra all record some of the highest EV shares in the country.
Access to home charging, dwelling type and annual kilometres driven all influence who buys an EV. Notably, residents along key public transport corridors show lower uptake — suggesting commute patterns play a bigger role than proximity to cities alone.
Policy is pushing EVs — but not to everyone
The 2023 Fringe Benefits Tax exemption for EVs works primarily through novated lease and salary sacrifice — arrangements that favour higher-income earners. The data shows it hasn't shifted the underlying adoption pattern.
The used car market may do what policy hasn't. Fleet EVs bought under the FBT exemption typically trade within one to five years, gradually feeding a second-hand supply. As prices fall and stock builds, NIEIR expects adoption to reach into regional and middle-income communities.
NIEIR's LEEM (Local Economy and Employment Model) tracks EV adoption alongside economic activity, energy use and emissions across every industry, down to individual Local Government Areas across Australia — making it one of the few datasets capable of mapping exactly where the energy transition is landing, including EV take-up, and what it means for local economies.
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EV owners are concentrated in the top 22% of wealthier areas in Australia
