Government announces finance incentive for EVs

The Australian government has issued a press release this week, announcing a deal worked out with Macquarie Leasing for cheaper finance to purchase electric vehicles and plug-in hybrids.

Starting with a $100 million asset finance program supported by the Clean Energy Finance Corporation (CEFC), the deal retailed through Macquarie provides buyers a 0.7 per cent discount for EVs and plug-ins. There's also a 0.5 per cent discount available for buyers of conventional cars that are more eco-friendly.

"Electric vehicles will play a big role in terms of creating more sustainable cities with less pollution and improved health outcomes for our community," says Josh Frydenberg, the Minister for the Environment and Energy.

"By providing discounted finance through the CEFC, it is hoped we can encourage a greater up take of electric vehicles and reduce emissions."

According to the CEFC, the discounted interest incentive to buy greener cars will contribute to reducing the nation's carbon-dioxide emissions by over 200,000 tonnes.

"Initiatives like this one are examples of the action the Government is taking to meet our Paris target of reducing emissions by 26 to 28 per cent on 2005 levels," the minister was quoted saying in the press release.

Tesla welcomes the initiative, says the local spokesman for the American electric vehicle manufacturer.

"Anything that assists in accelerating the advancement of sustainable transport by removing barriers such as high interest rates on loans is good news. Hopefully this triggers consideration of further changes in Governments across Australia," says Heath Walker, Senior Marketing and Communications Manager for Tesla Australia.

Tesla is a co-signatory to a report, ‘The Path Forward for Electric Vehicles in Australia', which proposes a number of recommendations government adopt to further the cause of electric vehicles in the local market.

One such recommendation reads: "To enhance short term uptake and increase EV model availability, up front purchase incentives, in line with those seen in leading markets, should be provided across the Australian market."

California is a ‘leading market', and that state – home to Tesla's head office in the USA – does offer electric vehicle buyers a substantial rebate for the purchase price.

In the golden state, there are also non-fiscal incentives offered to purchasers of electric vehicles. These include ‘preferential road, parking, lane access' – another recommendation in the locally-prepared report.

And lastly, the report recommends abolition of the luxury car tax (LCT) for battery-electric vehicles. At present, all cars priced above the LCT ceiling of $75,375 incur a 33 per cent impost on every dollar spent above that ceiling – even if they are vehicles that consume fuel at a rate of 7.0L/100km or lower. Naturally that includes Tesla's Model S sedan and Model X SUV. And while Tesla is saying merely that it welcomes anything that encourages buyers to consider an electric vehicle, there's no doubt the company and its customers would welcome further, more substantial incentives.