The Federal Government has confirmed its commitment to developing Australia’s first National Electric Vehicle Strategy, starting with a discussion paper to be released shortly for wide consultation.

At the heart of the Strategy will be a plan to improve uptake of electric vehicles and improve affordability and choice by growing the Australian electric vehicle market.

Australia is significantly behind the pack when it comes to electric vehicles – at last count, consumers in the United Kingdom could take their pick of 26 low-emissions vehicles under $60,000. In Australia that number is only eight.

At 2 per cent, the country’s uptake of new low-emissions vehicles is also nearly five times lower than the global average.

In this context, the Federal Government believes it is time to have an orderly and sensible discussion about whether vehicle fuel efficiency standards could help improve the supply of electric vehicles into the Australian market, to address the cost-of-living impacts of inefficient cars, and to reduce emissions from the transport sector.

Apart from Russia, Australia is the only OECD country to not have, or be in the process of developing, fuel efficiency standards.

The development of a National Electric Vehicle Strategy is an opportunity to explore options and details about how an Australian fuel efficiency standard could work and the benefits of a standard – such as getting more affordable electric vehicles to market and reducing household transport costs from inefficient vehicles.

In recognition of the importance of all jurisdictions working together to tackle this challenge and opportunity, the Minister for Climate Change and Energy and Minister for Transport have written to state and territory ministers inviting participation in the development of the Strategy.

The Government has already acted to make electric cars cheaper through the removal of fringe benefits tax and the 5 per cent import tariff for eligible electric vehicles.

Climate Change and Energy Minister Chris Bowen said the Federal Government will work collaboratively with the states and territories, industry, unions and consumer groups to deliver Australia’s first National Electric Vehicle Strategy.

“Up until now, Australian households and businesses have had very little choice regarding low-emissions and fuel-efficient vehicles, and they have been paying for it.”