NT ready to offer EV incentives too

Every state and territory in Australia now offers some form of electric vehicle incentive or encouragement following the announcement of an EV strategy and implementation plan in the Northern Territory.

Focused on passenger and light commercial vehicles, the plan’s headline initiatives are free registration and a $1500 cut in stamp duty for battery-electric and plug-in hybrid vehicles for five years, with implementation starting July 2022.

The NT government has also announced charging infrastructure initiatives including a commitment to develop a grant program for home, workplace and public EV chargers, skills development for both EV servicing and charging installation and backing for local EV innovation.

It has also committed to increasing government use of EVs, aiming to have 200 in its fleet by 2030, as well as encouraging the use of EVs in its agency pools and in private rental fleets.

Predictably, the territory government is also considering a road user charge as introduced by Victoria and planned (pending review) for South Australia in 2022, because of the drop in fuel excise revenue an increase in electrified vehicle use will produce. 

The NT scheme lacks the $3000 rebates the NSW and Victorian state governments are introducing to incentivise EV buyers.

It also doesn’t make a sweeping commitment to end petrol and diesel sales by 2035, as the Grattan Institute called for earlier this week.

Even if it did make such a commitment, the impact wouldn’t be huge as the NT accounts for just one per cent of the national fleet.

But the NT plan is arguably more comprehensive than plans currently in place in other states and the ACT. The federal government offers no subsidies for EV buyers, instead focusing on recharging infrastructure.

“The Territory Labor government is continuing to address renewables and climate change while creating new business and economic opportunities for Territorians,” said NT minister for infrastructure, planning and logistics (and renewables and energy), Eva Lawler.

“Actions in the Implementation Plan have been directly influenced by feedback from the community, including 79 per cent of respondents supporting the NT government encouraging EV use and 77 per cent agreeing that now is the right time to encourage EV use.

“Feedback indicated there is significant support for the NT government installing EV chargers, as well as setting targets for the NT government fleet.

“Implementation of this electric vehicle policy confirms our government’s actions on addressing climate risk to transition to a low-carbon economy. Responding to climate change will not only help us protect our environment, but will support this new industry and the jobs that come with it.”

The NT EV plan was welcomed by the Australian automotive industry’s umbrella body, the FCAI.

“Our initial view is that the Northern Territory’s package is a very simple and pragmatic way to promote the expansion of EVs across the territory,” said FCAI chief executive Tony Weber.

“For some time the industry has been highlighting just how inefficient stamp duty and other taxes are. We are pleased to see this as a potential first step in the Northern Territory adopting a broad-based road user charge scheme which could eliminate a myriad of inefficient taxes.”

The Electric Vehicle Council also welcomed the NT initiative.

“Where we are really encouraged is how holistic the Northern Territory program is in saying, ‘What can we do to encourage electric vehicle uptake?’” said EVC CEO Behyad Jafari.

“They are looking at rolling out more public charging stations so when people do buy EVs because they have just been made cheaper they will have places to charge them as well.”