Eye on Lithium: Aussie EV sales could surge as Labor’s discount tipped to knock $2000 off the price.
Our new Federal Labor government has made some big promises when it comes to electric vehicles (EVs), with plans to introduce an Electric Car discount from July 1.The discount aims to make electric cars cheaper so that more families who want them can afford them, and to reduce emissions.
Some EVs will be exempt from 5% import tariffs and the 47% fringe benefits tax on electric cars that are provided through work for private use.
The exemptions will be available to all electric cars below the luxury car tax threshold for fuel efficient vehicles ($77,565 in 2020-21), with the aim to encourage car manufacturers to import and supply more affordable electric models in Australia.
Could knock $2000 off EV prices
Currently only 1.5% of our cars are electric and plug-in hybrids, and out of 15 million cars on Aussie roads, only 24,000 are EVs.
The problem is the price — they’re not affordable for most Australian’s when you consider that there are none under $40,000 and just 5 models going for under $60,000.
The Electric Vehicle Council estimates that a $50,000 model (like the Nissan Leaf) will be more than $2,000 cheaper as a result of removing the import tariff.
Not to mention that EVs are cheaper to run and maintain, with Nissan estimating a commuter in NSW can save $30 a week by switching from a petrol car to its Leaf model.
Plus, if a $50,000 model is provided through employment arrangements, Labor’s fringe benefits tax exemption will save employers up to $9,000 a year.
The new government is also working to develop a National Electric Vehicle Strategy focusing on Australian manufacturing of electric car components – especially batteries – and potentially EVs themselves.
