The Opposition’s U-turn on the electric car discount that’s making EVs more affordable to buy is a major blow to everyday, hard-working Australians during a cost-of-living crisis, according to the Electric Vehicle Council.
On Monday, the Opposition Leader indicated there were no proposals to change the Fringe Benefits Tax (FBT) exemption, which creates an ‘electric car discount’ by making it cheaper for workers to buy an electric car through salary sacrificing or as a company car for personal use.
On Wednesday, the Coalition reversed its decision, delivering a cost-of-living blow to average working Australians in the outer suburbs, such as Werribee in south-west Melbourne, Baulkham Hills in north-west Sydney and Springfield south-west of Brisbane, where the policy has seen the most significant uptake.
This undermines the progress made by families trying to cut household bills and switch to more sustainable transport.
Electric Vehicle Council CEO Julie Delvecchio said: “If the Coalition genuinely wants to lower the cost of driving during a cost-of-living crisis, it needs to support working Australians to get into an electric car through this policy.
“The electric car discount has been helping thousands of workers finally afford to buy an electric vehicle. When Australians make the switch to an EV, they stand to save up to $3,000 per year on fuel and maintenance costs, but the biggest roadblock is the upfront cost. The FBT exemption has been helping to lower that barrier.
"The Australians who’re set to lose out most are those in outer suburbs, who have embraced the electric car discount in droves. People living in the outer suburbs and regional communities — who typically drive longer distances — are finally able to access the savings that EVs offer, thanks to this discount.
“The FBT exemption passed by Parliament has been highly effective, achieving exactly what it was designed to do — helping more Australians afford an EV while cutting transport emissions. Scrapping it now will drive up the cost of owning and running an EV for Australians and stall progress toward cleaner, cheaper-to-run transport.
“The exemption is helping reduce upfront costs and delivering real savings on running costs—benefits now at risk for thousands of Australians. Dismantling this policy sends the wrong message to those doing their bit to drive Australia’s clean transport future.
“We call on the Coalition to hit reverse and keep the EV FBT exemption in place so that more workers can afford an electric car that will save them thousands on fuel costs every year.”
Contact details:
Sofie Wainwright: 0403 920 301