Electric vehicle policies in Australia include incentives such as electric vehicle subsidies, interest-free loans, registration exemptions, stamp duty exemptions, the luxury car tax exemption and discounted parking for both private and commercial purchases. The adoption of plug-in electric vehicles in Australia is driven mostly by state-based electric vehicle targets and monetary incentives to support the adoption and deployment of low- or zero-emission vehicles.
60% of Australians support a nationwide ban on petrol and diesel car sales by 2035.[1] While 65% of Australians want subsidies to make electric vehicles more affordable.[1] The opposition government in Australia in 2019 proposed a 50% electric vehicle target by 2030.[2] The Coalition federal government has its carbon abatement policy anticipating electric vehicles to make up 50% of sales by 2030.[3]
The Electric Vehicle Council and the principal clean energy transition advisor for Ernst and Young, urged the Australian government to introduce a complete ban on new petrol and diesel car sales from 2035 as seen in the UK, and add hybrids to the black list.[22] Two of the world's largest right-hand-drive markets are intending to eliminate petrol and diesel vehicle sales by 2030.[23]
The Canberra Greens stated they would give consumers and businesses $10,000 towards buying an electric car or motorbike in 2020.[24][25][26] The Canberra Greens also supported free registration for electric vehicle owners.[24][25][26] Furthermore, they stated they would target 90% of new vehicle sales to be electric by 2030.[24][25][26] As part of the plan, the ACT Greens also wanted to see public transport, garbage trucks, taxis and ride share vehicles transition entirely to electric vehicles by 2035.[24][25][26]
A final National Electric Vehicle Strategy is set to be released by mid 2021 by the Federal Liberal Government.[27][28][16] This was expected to include federal tax rebates and direct vehicle subsidies as offered through similar federal government policies in the United States, Europe and China.[29]
The initial federal government's electric vehicle strategy was criticised as being too heavily reliant on commercial buyers to increase the overall uptake of EVs in Australia, through fleet purchases.[10] This is in comparison to policies in the UK, Japan, France, Germany, Norway and the US which offer approximately $10,000 in subsidies each for specifically increasing private consumer purchases of EVs.[10] Electric vehicle rebates and subsidies up to $20,000 AUD have also been shown to be effective in increasing the uptake of EVs in European countries and certain states in the US.[30][31] Uber also stated it would be difficult for their drivers to transition to electric vehicles by 2030 in Australia without any subsidies or policies aimed to support consumer uptake of EVs.[10]
A Comcar trial of electric cars within the federal government fleet is also to be undertaken until the end of 2022.[32] This is in comparison to New Zealand where all government vehicles and the entire bus fleet must be zero emissions by 2025.[33]
The federal government even insisted that fleets should transition through hybrids first, and then electric vehicles. However, various independent studies have shown EVs are already competitive in leasing arrangements when compared to hybrids.[13] BMW Group Australia have a program offering a $1,500 incentive for new vehicle purchases for company use by small to medium enterprises seeking to purchase a new BMW or Mini BEV or PHEV.[34] BMW also offer Australian small and medium-sized business a complimentary electric bicycle if they purchases a new BMW or Mini plug in electric car before the end of June 2021.[35] NSW Transport Minister Andrew Constance said "We've got to be incredibly bullish on the incentive side, and signals to the market are important in this environment, because we need scale".[36] NSW Environment Minister Matt Kean stated when referring to electric cars "I want to see NSW the leader not only in the country but on the global stage when it comes to that new economy that's coming whether we like it or not".[36] Therefore, it is highly likely NSW intend for 100% of new car sales to be fully electric vehicles before 2035 and to offer free registration and stamp duty on EVs to truly lead other states like South Australia and the ACT.[37][38] NSW would also need to offer $15,000 interest free loans towards the purchase of EVs to remain ahead of the ACT's effective electric vehicle incentives.[38] This also includes New South Wales advocating with the South Australian Liberal Government for better national vehicle fuel efficiency and fuel quality.[37]
The Victorian Government encourages the use of electric cars as part of its strategy to tackle climate change with a long-term target of net zero greenhouse gas emissions by 2050.[41] The Victorian Government recognise that unless Victorians adopt zero emission vehicles at a faster pace than current trends, the state's legislated target of net zero emissions by 2050 will not be met.[42] Victoria's peak infrastructure advisory body also advised the Victorian Government to remove registration fees for EVs.[43] The Victorian peak infrastructure advisory body also recommended that the entire Victorian bus fleet should be transitioned to electric vehicles.[43] Additionally, it was recommended that Victoria establish a date for the ban on the sale of internal combustion-engine vehicles.[43] In May 2021 the Victorian Government released a Zero Emissions Vehicle Roadmap to support the adoption of electric vehicles.[44]
Victoria also proposed a road user charge for electric vehicles, however there are legal complications and potential constitutionality issues relating to the tax.[32] The Labor Party's tax was also almost defeated due to the lack of support to pass the legislation in parliament's upper house, but was passed in May 2021.[45][46]
The South Australian Government would only propose an EV tax no earlier than 2027 or when 30% of new car sales are EVs.[48][49] In 2020 the state parliament introduced an EV tax that would be defeated with the majority of the parliament voting in opposition.[50]
In late 2020 Volvo announced that they would be providing electric buses to Western Australia, they were expected to be in operation as of early 2022. In March 2022 the first Volvo electric bus commenced operation in Perth, this is the only one so far.[51][52]
As of late 2022 the ACT offers the most financial and non-financial incentives for purchasing electric vehicles of any state in Australia.[69] Accordingly, the Australian Capital Territory has the highest rate of EV sales of any state with 83 EVs per 10,000 new car sales.[26] Supporting this high rate is the fact that electric vehicles sold in the ACT are stamp duty exempt and receive a 20% reduction in registration fees.[26] The ACT government is further supporting electric vehicle adoption by trialing V2G (Vehicle-To-Grid) technology with 50 EV owners.[70]
BP Australia and Ampol Australia have committed to meet Euro 7 guidelines by 2024. Ampol and BP committed to achieving 10ppm maximum limits for sulphur in petrol in Australia by 2024.[76] Viva Energy also intend to comply with Euro 6 before 2027.[76]
$5 million commercial sector ZEV Innovation Fund to encourage the uptake of ZEV light commercial vehicles in the commercial passenger vehicle, logistics, construction and service-sector industries.[121]
The trial, set to start in late 2021, would see e-scooters used in bicycle lanes, shared paths, and roads with a maximum speed of 50 km/h in local government areas of Melbourne, Yarra and Port Phillip and Ballarat for 12 months.[129][130]
Among the many similarities between California and Australia, both are impacted by bushfires and climate change, and both are home to larger cars and trucks than is the norm in developed countries. They are dissimilar, though, when it comes to electric vehicles and vehicle regulations. While California has been pursuing low-carbon and electric vehicles for decades, Australia has trailed most developed nations.
Plug-in electric vehicles accounted for 16% of new light-duty vehicle sales in California in the first half of 2022. In Australia, electric vehicle sales are only 2% of the market, and mostly from one carmaker, Tesla.
In California and other markets like Norway, most early electric vehicle buyers charge at home on their driveway or in a garage. In Australia even more people live in a detached house than in California. Drivers in these households could charge their vehicle at home, which reduces the need for public charging stations.
Public charging may be needed to support occasional charging, to enable longer journeys and to support the smaller proportion of households without home charging. But public infrastructure is not a prerequisite for early market growth.
The lack of choice and of lower-cost electric vehicles in Australia is because carmakers prefer to send these models to markets with supportive electric vehicle policies . Making these models available in Australia may be as simple as giving carmakers the motivation to sell them there.
Australia may be well positioned for a rapid transition to electric vehicles if it adopts more supportive policies. If Australia brings in policies such as ambitious fuel-economy standards or a zero-emission-vehicle sales mandate, the country could benefit in the same ways as California did.
Australia is not the first nation to grapple with these challenges. South Korea, despite being a global producer of electric vehicles, was experiencing slow domestic market growth. Many Korean electric vehicles were exported to regions with policies more friendly to the technology.
The government responded with policies to support electric vehicles. Since then, domestic sales have tripled. South Korea is now the seventh-largest electric vehicle market in the world, up from 11th in 2019.
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