Industry welcomes ALP's EV policy

The Australian Labor Party has vowed to introduce new discounts for buyers of electric vehicles should it be elected to government later this month, promising the removal of import tariffs and, for EVs priced under $77,565, exemption from fringe benefits tax.

For anyone wondering why the ALP has chosen that particular figure, it’s the luxury car tax threshold for fuel-efficient vehicles and Labor hopes to entice auto brands to offer more affordable EVs models in the Australian market.

In terms of savings, the official policy outline has nominated a cost reduction of more than $2000 for “a $50,000 model such as the Nissan LEAF” thanks to the waived import tariff.

Meantime, employers are potentially in for a $9000 saving on a similarly priced model given the current tax rate on EVs provided through work for private use is 47 per cent.

“Savings will be even higher for more expensive models [up to the luxury car tax threshold],” the policy reads.

Labor’s Electric Car Discount will be backed by a $39.3 million investment in the installation of 117 DC fast-chargers on highways around the country, and the funds to be matched dollar-for-dollar by the NRMA, resulting in at least one charging station every 150km (on average) on major roads.

According to the ALP, this will mean that, for first time, people will be able to truly drive around Australia in an EV, including from Adelaide to Perth across the Nullarbor, from Darwin to Broome and on to Perth, from Broken Hill to Adelaide, from Port Augusta to Darwin and from Brisbane to Mt Isa and on to Tennant Creek.

Hydrogen highways are also firmly on the radar for the heavy haulage and transport sectors, with the ALP promising to collaborate and match the financial efforts of states and territories to establish up to 16 hydrogen refuelling stations on Australia’s busiest freight routes.

The announcement of Labour’s $500 million Driving the Nation Fund yesterday has been welcomed by the Electric Vehicle Council (EVC), which says it will make EVs more accessible for a greater number of motorists.

“Under Labor’s commitment you could be certain that no matter where you live or where you’re going you could get there in an EV,” said EVC chief executive Behyad Jafari.

“We know range anxiety remains a major impediment to Australians purchasing EVs. Although much of this anxiety is misplaced, building a modern network of charging infrastructure would send a strong signal that there’s nothing to fear.

“City drivers are flocking to EVs because the benefits are so clear and obvious. For regional drivers hesitancy is stronger, but that’s why it’s excellent to see the NRMA committing to partnering with the federal government to roll out regional charging infrastructure and make EVs an option for all Australians.”

Meantime, Federal Chamber of Automotive Industries (FCAI) chief Tony Weber said: “any infrastructure spending is welcome … as we continue the journey towards the full electrification of Australia’s automotive fleet”.

The ALP previously found favour with auto industry bodies when it first floated the prospect of an EV discount back in March last year.

By contrast, the federal government’s $250m Future Fuels and Vehicles Strategy was slammed by key industry players including both the EVC and the FCAI, which labelled the plan a ‘fizzer’.

If elected, ALP says its EV plan would come in effect as of July 1.