Opposition's push to axe EV Discount would drive up emissions and costs for outer-suburban Australians
NALSPA
The Opposition’s position on the Electric Car Discount would stall EV uptake, drive up emissions, and push up costs for families in outer metro Australia, the National Automotive Leasing and Salary Packaging Association (NALSPA) warned.
In a speech today, Opposition Leader Sussan Ley has once again attacked the federal government’s investment in the EV Fringe Benefit Tax (FBT) exemption.
The criticism comes after independent modelling this week found that every $1 spent on the EV Discount has delivered more than $2 in environmental, economic and health benefits - a return that is expected to rise to $3 by 2030.
The modelling also found that ending the EV Discount in 2027 would result in twice the vehicle emissions compared to extending it to 2035.
Between 2022 and 2024, the Electric Car Discount has placed an extra 105,500 new BEVs and PHEVs on Australian roads, helped boost the second-hand EV market by 157 per cent, and has been most popular among workers living in the outer metro suburbs of Australia.
NALSPA CEO Rohan Martin said the Opposition’s stance on the Electric Car Discount is misguided and, if implemented, would derail momentum on EV uptake.
“The Opposition’s push to scrap the Electric Car Discount would mean fewer EVs, more emissions, and higher costs for everyday working Australians in the outer suburbs,” Mr Martin said.
"Campaigning to scrap a highly successful policy that is driving EV uptake is completely out of step with the moment. Just this week, Australia was reminded of the devastating costs of inaction on climate change. With the transport sector set to become the country’s largest source of emissions, supporting EV uptake is crucial. Decarbonising transport comes at a cost but the cost of inaction is far greater.
“The EV Discount is having the greatest impact with families in the outer suburbs including Werribee in south-west Melbourne, Baulkham Hills in north-west Sydney and Springfield south-west of Brisbane.
“The largest group of households taking up the EV Discount are not wealthy inner-city drivers, they are middle-income families living in the outer suburbs who are using the policy to keep more of what they earn while making the switch to cleaner, cheaper-to-run cars.
“These working households also stand to lose the most if the EV Discount were removed, as lower- and middle-income earners receive a proportionally greater tax saving from the policy compared to higher earners.
“Nurses, aged care workers, and teachers have told our members they wouldn’t have switched to an EV without this policy. Around the world, the pattern is clear - strong EV adoption is supported by government incentives that encourage demand for a sustained period of time.”
Contact details:
Sofie Wainwright: 0403 920 301