Since its introduction, the Electric Car Discount has allowed more than 100,000 Australians to transition to EV ownership. By removing the Fringe Benefits Tax (FBT) on eligible electric vehicles, the discount has significantly reduced the cost of salary-packaged EVs, leading to a rapid shift in the novated leasing market. Battery Electric Vehicles (BEVs) have increased from 4% of novated leases in 2022 to 44% in the fourth quarter of 2024.
The EVC highlights that the discount has not only facilitated immediate cost savings for consumers but has also contributed to the broader goal of reducing transport-related emissions. By making EVs more accessible, the policy supports Australia's transition to cleaner, more sustainable transportation options.
However, the EVC warns that discontinuing the Electric Car Discount could hinder this progress. The Council urges the government to consider the long-term benefits of the policy, including its role in achieving Australia's 2035 climate goals. Maintaining the discount is seen as essential to sustaining the momentum in EV adoption and ensuring that all Australians, regardless of income level, have the opportunity to participate in the shift towards sustainable transport.
As the government reviews the Electric Car Discount, stakeholders from the automotive and environmental sectors advocate for policies that continue to support the affordability and accessibility of electric vehicles. The EVC's call to action underscores the need for consistent and supportive policies to drive Australia's transition to a low-emission transport future.
