The 2022-23 Federal Budget has been delivered, and includes the infrastructure toll and electric vehicle incentive commitments made during the election campaign.
There are a few surprises in the Budget in this area, with the Alban Labor Government reiterating its commitment to Australia’s first National Electric Vehicle Strategy, along with the National Acceleration Fund.
The latter is expected to see $275.4 million invested over the next six years, bringing the total investment in electric and hydrogen vehicle infrastructure to more than $500 million.
This includes:
- $146.1 million in funding allocated to the Australian Renewable Energy Agency (ARENA) over the next 5 years to co-invest in projects to reduce emissions from the road transport sector
- $89.5 million over the next six years to fund hydrogen refueling stations on Australia’s busiest cargo routes as part of the Hydrogen Highway initiative
- $39.8 million over the next 5 years to establish the National Electric Vehicle Charging Network, with 117 fast charging stations on our nation’s highways in partnership with NRMA
It also invests $14 million over the next four years in the Australian Automobile Association (AAA) to conduct road emissions and fuel economy tests of light vehicles sold in Australia.
The Australian Government has also committed to purchasing and leasing its fleet of 75% electric vehicles by 2025, aiming to not only reduce fleet emissions but also create a used electric vehicle market.
It has budgeted for the move at $15.9 million over the next four years.
The budget also includes a piece of legislation had before the Senate will see some electric vehicles exempt from the marginal benefit tax.
The government said the proposed FBT exemption would apply to battery electric cars (BEVs), hydrogen fuel cell electric cars (FCEVs) and plug-in hybrid electric cars (PHEVs) and would be reconsidered after three years, the government said.
To be eligible, a low-emission vehicle must have a first retail price below the relevant current luxury car tax threshold of $84,916 (for 2022-23) and have been put in first use. first on or after July 1 of this year – meaning the law will be renewed.
The Labor Government claims an employer offering an EV of about $50,000 to an employee as a fringe benefit can save up to $9000 a year.
It also claims individuals using the pay-to-pay-for-wage sacrificial agreement can save up to $4700 a year.
The government has an Electric Car Discount Plan, at a total cost of $345 million, to waive the 5% import tax on qualifying electric vehicles. This will only affect EVs from Europe, with most electric vehicles sold in Australia not subject to this tax.
It says eliminating customs duties will save EV buyers an additional $2500 if the vehicle was previously subject to import duties.
The Electric Vehicle Rebate Program is estimated to reduce benefit tax revenues by approximately $10 million this fiscal year and $75 million through fiscal year 2025-26.
A survey conducted by Small Business Loans Australia found that 40% of Australian businesses will buy electric vehicles by the end of 2023 if the law is passed.
“The Federal Government understands that electric vehicle prices are a major barrier to their adoption in Australia,” said Alon Rajic, founder and chief executive officer of Small Business Loans Australia.
“Our research shows that removing this barrier will have a hugely positive effect on business purchasing decisions.
“It also shows that Australian business owners support the Government’s realistic efforts to achieve net zero emissions – to the extent that they will receive financing for their vehicles amid rising interest rates. fast.”
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