The Electric Vehicle Council (EVC) says the Opposition’s U-turn on the electric car discount that’s making EVs affordable is a major blow to Australian buyers.
The National Automotive Leasing and Salary Packaging Association (NALSPA) says the wind-back doesn’t align with the Coalition’s election promises.
On April 21, the Opposition Leader indicated there were no proposals to change the Fringe Benefits Tax (FBT) exemption, which creates an ‘electric car discount’ by making it cheaper for employees to buy an electric car through salary sacrificing or as a company car for personal use.
On April 23, the Coalition reversed its decision, delivering a cost-of-living blow to Australians in the outer suburbs, such as Werribee in south-west Melbourne, Baulkham Hills in north-west Sydney and Springfield south-west of Brisbane, where the policy has seen the most significant uptake.
“If the Coalition genuinely wants to lower the cost of driving during a cost-of-living crisis, it needs to support Australians to get into an electric car through this policy,” EVC chief executive Julie Delvecchio says.
“The electric car discount has been helping thousands to buy an electric vehicle. When Australians make the switch to an EV, they stand to save up to $3,000 per year on fuel and maintenance costs, but the biggest roadblock is the upfront cost. The FBT exemption has been helping to lower that barrier.
“The Australians who’re set to lose out most are those in outer suburbs, who have embraced the electric car discount in droves. People living in the outer suburbs and regional communities, who typically drive longer distances, are finally able to access the savings that EVS offer, thanks to this discount.
“The FBT exemption passed by Parliament has been highly effective. Scrapping it now will drive up the cost of owning and running an EV for Australians and stall progress toward cleaner, cheaper-to-run transport.
“Dismantling this policy sends the wrong message to those doing their bit to drive Australia’s clean transport future.
“We call on the Coalition to hit reverse and keep the EV FBT exemption in place so that more people can afford an electric car,” she says
“NALSPA is disappointed at the Coalition’s reversal on the commitment from Opposition Leader Peter Dutton to maintain the Fringe Benefits Tax (FBT) exemption for EVS,” NALSPA chief executive Rohan Martin says.
“Such a winding back doesn’t align with the Coalition’s election pledges—like tax relief through an offset, scrapping the New Vehicle Efficiency Standard penalties to lower upfront car costs, and halving the fuel excise—because the EV FBT exemption successfully delivers on all those fronts.
“Winding back the EV FBT exemption would increase the cost to own and operate a car for the many working Australians seeking to save money and reduce their carbon footprint through owning an electric vehicle.
“We therefore call on the Coalition to reverse their proposal to wind back these subsidies so that working Australians and their families can have certainty as they seek to reduce their cost of living,” he says.
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