The Australian Government intends to introduce new incentives for electric vehicles, including hybrids, to fulfill a promise made before the election.
The Secretary for Energy and Climate Change Chris Bowen confirmed in a speech to the National Press Club this week the Government will enact legislation when Parliament meets again at the end of July. make electric vehicles more affordable.
Instead of direct subsidies, the so-called Electric Vehicle Discounts take the form of tariff and welfare tax exemptions that the Government intends to apply retroactively from 1 July.
However, the Australian Government has not announced any plans to introduce federal emissions standards although call from industry to do that. That led the Federal Automobile Industry Chamber to set up a voluntary scheme, although it does not have the power to penalize automakers.
As promised before the election, electric vehicles below the Luxury Car Tax (LCT) threshold – currently $84,916 for the 2022-23 fiscal year for fuel-efficient vehicles – will be exempt from import duties. % if affected.
In addition, these same cars will be exempt from the 47% benefit tax if they are offered through employment agreements.
Labor’s National Electric Vehicle Strategy includes in its definitions of EV battery electric vehicles, plug-in hybrid vehicles and hydrogen fuel cell electric vehicles, although none of these vehicles have available below the LCT threshold.
“We have promised to cut tariffs and abolish the marginal benefit tax on affordable electric vehicles from 1 July this year and that is exactly what we will do,” said Mr. Bowen.
“Of course, Parliament won’t sit until the end of July, and so we will ask the Tax Office to do the collection of the tax cuts, in accordance with the normal procedure.”
These incentives are in addition to the increase in the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles, which is already in effect.
From July 1, the threshold for fuel-efficient vehicles will increase by 6.6% to $84,916, while for all other vehicles, only 3.9% to $71,849.
As defined by the Australian Taxation Office (ATO), a fuel efficient vehicle is one whose fuel consumption does not exceed 7.0L/100km on the combined cycle.
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The Electric Vehicle Council has praised the new incentives, although it wants to do more.
Chief Executive Officer Behyad Jafari, Chief Executive Officer Behyad Jafari of the Electric Vehicle Council of Australia said: “We see in particular that the FBT exemption is a pretty valuable incentive to incentivize more fleets and more advanced leases.
“I think it brings quite a lot of benefits to the industry, of course it still leaves us with the constant challenge of getting more vehicles and I think that is the next big challenge that we are discussing. discussion with the current government.
“It’s natural and in line with the promises they’ve made to come up with a very strong fuel efficiency standard that matches zero by 2050. That means there’s a consistent standard. with the kind of standard that we see US and EU. “
That echoes Reviews from companies like Volkswagen said it was struggling to get a supply of electric vehicles to Australia because of a lack of federal emissions standards, which could penalize companies for not selling enough low- or zero-emissions vehicles, pushing us down the list. priority books for vehicles.
The Albanese Labor Government has not said it plans to introduce federal emissions standards, nor has it indicated it plans to introduce direct subsidies.
The absence of a second approach at the federal level has prompted States and Territories to step up, with many cases providing direct subsidies for new electric vehicle purchases.
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Last year, the Labor opposition announced a National electric vehicle strategy worth $251 millionwhich includes tariffs and tax exemptions plus investment in toll infrastructure and the goal of “environmentally putting 3.8 million electric vehicles on the road by 2030”.
The recently elected Alban Labor Government intends to deliver on not only the electoral promises of duty and tax exemptions, but also other promises surrounding electric vehicles.
That includes the implementation 500 million USD Promote the National Planwith an EV fast charger every 150 km on Australia’s motorway network.
A Hydrogen Highways refueling network is also planned to provide hydrogen refueling stations along Australia’s busiest cargo routes to support hydrogen fuel cell trucks.
The Government also intends to gradually convert the Commonwealth’s fleet to zero-emission vehicles with a target of 75% of new hire and purchased passenger cars by 2025. This fleet currently consists of only 0.1% electric vehicles.
Last year, the Labor opposition also announced plans to roll out charging infrastructure in more than 100,000 businesses and 3.8 million homes, with 1800 new public access fast charging stations on an unspecified date. determined.
Mr. Bowen said he would also introduce during the first week of Parliament the Albanese Government’s Climate Change Bill.
This includes a target of 43% emission reduction by 2030 and net zero emissions by 2050.
The Government intends to have the Climate Change Agency publish progress results on these targets, with the Minister of Climate Change intending to report annually to Parliament on said progress.
