Incentive or no incentive ?
Global sales are showing that financial incentives do result in genuine change among consumers . As seen in the table below all G7 countries currently offer incentives for EV purchases and sales in these regions are growing significantly faster than here where we have no financial encouragement to buy an EV .
G7 EV purchase incentives
Market Local Currency ~ AUD Canada $ 5,000 $ 5,000 France € 7,000 $ 11,000 Germany € 6,000 $ 10,000 Italy € 6,000 $ 10,000 Japan ¥ 400,000 $ 5,000 UK £ 6,000 $ 10,000 USA $ 7,500 USD $ 10,000 Australia – – Source : Electric Vehicle Council
Smaller European countries like Norway boast the highest share of plug-in EVs in new passenger sales of 74.8 per cent , followed by Iceland at 45 per cent and Sweden with 32.2 per cent . Even China manages 6.2 per cent , showing just how far Australia has to go . But
the difference for this region could well depend on which major party wins the next federal election .
In February the Coalition said it won ’ t be providing European style incentives for electric vehicles any time soon , citing they don ’ t “ represent value for taxpayer money ” as part of its Future Fuels Strategy discussion paper . The paper provided no mention of a fuel emissions standard or target – leaving Australia as one of the only developed countries worldwide without one .
“ Providing government subsidies for battery electric vehicles at this high cost would not represent value for money for taxpayers ,” it said .
Conversely , should Labor win the next election in 2022 , the party has promised to exclude EVs priced at A $ 77,565 and below from import and fringe benefits taxes . In reality the changes could see a A $ 50,000 vehicle made some A $ 2000 cheaper .
“ A majority of Australians say they would consider buying an electric model as their next car , but because of scaremongering and the policy vacuum under the Morrison government , electric vehicles remain unaffordable for most Australians ,” Opposition Leader Anthony Albanese said .
12 ISSUE 28 APRIL 2021 / WWW . AFMA . ORG . AU