The National Automotive Leasing and Salary Packaging Association (NALSPA) has today welcomed the federal government’s announcement of the statutory review of the Electric Car Discount, noting that the policy continues to be highly effective in encouraging Australians to make the switch to cleaner cars.
The federal government announced today that next year it will review the Electric Car Discount, otherwise known as the EV FBT exemption which came into effect in July 2022.
The review will consider the operation of the Electric Car Discount over the first three years it has been in place, as required by the legislation.
“We will actively participate in the federal government’s review of the FBT Discount for electric vehicles and look forward to playing a constructive role throughout the consultation process,” NALSPA chief executive Rohan Martin said.
“The FBT exemption upon EVs is demonstrably effective and is working exactly as the Parliament intended. It's encouraging and helping more everyday working Australians to switch to an electric vehicle to reduce transport emissions, whilst providing much needed cost-of-living relief and getting more affordable used EVs into the secondary market.
“We know there remain a range of barriers for Australian motorists considering an electric vehicle. However, with the ongoing support of the EV Discount and greater model range, more and more typical working families in the outer suburbs who are facing rising costs of living are doing their sums and considering an EV.
“This policy is playing a pivotal role in helping to drive EV uptake in Australia, with many everyday workers, including teachers and nurses, telling our members that there is no way they would have bought an EV without the support of the EV FBT exemption.
“As the analysis of the National Transport Commission found this week, emissions intensity from light vehicles has been reducing among their strongest in 20 years as more electric vehicles have been entering the national fleet, which aligns with the introduction of the EV FBT exemption. However, Australia has a long way to go to ensure its EV rollout meets global standards.
“Every country with strong EV adoption has relied on buyer incentives, together with other initiatives, over a sustained period to keep momentum going and the EV market growing until widespread market adoption is achieved.
“The Climate Change Authority has said that for Australia to meet its emissions reduction targets by 2035 the country will need more than five million EVs on our roads.
“In addition, independent modelling by Magenta Advisory this year found expanding the Electric Car Discount for a decade could halve vehicle emissions compared with ending the policy earlier, whilst tripling value for money through health, environmental and economic benefits.
“Demand-side incentives like the Electric Car Discount, together with policy instruments including the NVES, are critical to driving the electric vehicle transition.
“NALSPA looks forward to working with the federal government on our policy proposals to ensure this important policy remains targeted, effective and fiscally sustainable for the longer-term.”
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