Statement from the National Automotive Leasing and Salary Packaging Association (NALSPA) chief executive Rohan Martin responding to the Productivity Commission’s final report ‘Investing in cheaper, cleaner energy and the net zero transformation’:
“It’s disappointing to see the Productivity Commission overlook the benefits of the FBT exemption for electric vehicles. We reject their recommendation outright. This is a policy that is demonstrably effective and is working exactly as the Parliament intended in driving EV uptake.
“Without the FBT exemption we would have far fewer new and second-hand EVs on Australian roads. Significant barriers to EV adoption remain, but for thousands of everyday Australians, the FBT exemption is making the difference between considering an EV and actually buying one. Our members consistently hear that without the EV FBT exemption, electric vehicle purchases wouldn't have happened.
“The EV FBT exemption is most popular in outer suburbs like Werribee in Victoria, Kellyville in NSW and Springfield in Queensland, where many families face longer commutes and are seeking relief from cost-of-living pressures.
“Research by economic consulting firm, Magenta Advisory, has shown that for every $1 spent on the FBT exemption it delivers more than $2 in health, environmental and economic benefits.
“Transport will soon become Australia’s biggest carbon emitting sector and without making significant progress to decarbonise the private fleet, Australia will be unable to meet its carbon reduction targets.
“The EV FBT exemption is the most effective, and virtually only purchase incentive in Australia that is helping to materially drive the electric car transition.
“The countries with strong and successful EV uptake are those that have deliberately paired demand-side incentives with supply-side measures - contrary to the PC’s view that such policies represent an ‘overlap’.
“Despite gains in EV uptake, Australia still lags far behind global leaders, making the EV FBT exemption essential to maintaining momentum until the market matures and is self-sufficient.”
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