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Proposed national plan to make electric vehicles more affordable

01 Apr, 2021



The Australian Labor Party (ALP) has made a pledge to make electric vehicles more affordable by introducing an Electric Car Discount.

As part of the discount, Labor would exempt many electric cars from import tariffs – a 5 per cent tax on some imported electric cars; and fringe benefits tax – a 47 per cent tax on electric cars that are provided through work for private use.

These exemptions will be available to all electric cars below the luxury car tax threshold for fuel-efficient vehicles ($77,565 in 2020-21).

EVC Chief Executive, Behyad Jafari, said welcomed the announcement, saying Australians want to make the switch to electric vehicles, but the lack of leadership nationally has limited their options.

“Electric vehicles are cheaper to run, require less maintenance and are better for the environment. It is only government inaction that is causing us to trail the rest of the world in electric vehicle uptake.”

“This policy would encourage car manufacturers to import and supply more affordable electric models in Australia. This makes it a win for the environment and a win for fairness,” he said.

“This is the type of sensible action that has been taken by world leaders from all sides of politics. It is proven to work by making electric vehicles more affordable for more Australians.”

Labor has also promised to:

  • Work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy, including consideration of: a) further measures to increase electric car sales and infrastructure, b) policy settings to encourage Australian manufacturing of electric car components (especially batteries) and possibly cars themselves, and c) ways to address the revenue and policy implications of declining fuel excise;
  • Consider how the Commonwealth’s existing investment in infrastructure can be leveraged to increase charging stations across the country; and
  • Consider how other existing Commonwealth investments, including in its fleet, property and leases, can also be leveraged.

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