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Environment, Government Federal

Coalition’s call to scrap Electric Car Discount during fuel crisis doesn’t make sense

NALSPA 2 mins read

Australia’s peak body for novated leasing said the Coalition’s call to scrap the Electric Car Discount during a fuel crisis makes no sense.

The Coalition wants to end the EV discount, which is helping Australians avoid petrol and its price shocks for good, in order to fund a short three-month halving of the fuel excise.

“Any proposal to cut or reduce the EV Discount during the middle of a fuel crisis is irrational,” National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said.

“It makes no sense to cut a policy that is helping Australians avoid petrol forever purely to fund a cut to the fuel excise which will last just three months.

"Instead of pursuing short-sighted measures, Australia’s policy focus should be on protecting practical policies that provide genuine, long-term relief to motorists, such as the EV Discount.

“We’re not against halving the fuel excise temporarily but we shouldn’t be artificially drawing a link to the Electric Car Discount - it’s a highly effective long-term policy of the Albanese Government that is helping Australians to reduce their cost of living and is actually deeply in the nation’s energy and fuel security interests.

“We know Australians are hurting at the bowser - that’s why it makes more sense than ever to keep the Electric Vehicle Discount longer term to help more everyday working Australians afford to buy cheaper-to-run cars that can be charged at home instead of the servo.

“As costs of living are so high, and as EVs generally cost more than their petrol equivalents to buy, many households simply can’t afford to buy one without the support of the EV Discount.

“The more new EVs Australians buy, the more second-hand EVs will come onto the market which broadens affordability and access even more.

“The workers who are using the Electric Car Discount the most are those living in the outer suburbs, including Werribee in Victoria, Kellyville in NSW and Springfield in Queensland. These are the families that tend to commute longer distances and are hit with huge fuel bills.”


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