The Productivity Commission’s interim report on Australia’s net zero transformation has prompted strong responses from automotive industry bodies, who warn that phasing out electric vehicle (EV) purchase incentives could stall the country’s progress on transport decarbonisation.
The ACT Government’s decision to remove the Territory’s motor vehicle duty concession for electric vehicles risks significantly slowing the Territory’s EV uptake and should be reconsidered, according to the Electric Vehicle Council.A policy shift set to take effect from September 1, 2025, which will see all new zero-emission vehicle transactions attract a minimum duty rate of 2.5%. Additionally, vehicles valued over $80,000 will attract a higher duty rate of 8%.This change would immediately add approximately $1,725 to the duty paid on a typical $60,000 battery electric vehicle (BEV) in the ACT.“This decision risks slamming the brakes on the progress that the ACT is making in EV uptake,” EVC chief executive Julie Delvecchio says.“The ACT stands out as Australia's electric vehicle champion with adoption rates that surpass every other state and territory, and that’s largely driven by strategic incentives that get drivers to make the switch.“Incentives such as duty concessions and the Fringe Benefits Tax (FBT) exemption are essential to support and accelerate EV adoption, especially in these early stages of the transition when widespread uptake is crucial.“Demand-side incentives for EVs help overcome cost barriers, encouraging uptake among people who may not have otherwise made the switch.
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.
