“Thrilled”. That was the verdict of Tesla chairperson Robyn Denholm on Sunday at the news that New South Wales had become the first Australian state to announce a serious, unencumbered set of reforms to stimulate electric vehicle uptake.
Denholm’s sigh of relief was echoed across the car and energy industries, environmental groups and the nation at large, reflecting a widespread impatience over Australia’s stubborn commitment to date to remaining the developed world’s most notorious EV laggard.
“Thrilled to see my home state of NSW take a big step forward in accelerating the transition to sustainable transport,” the Australian-born Denholm, a former Telstra executive, said on LinkedIn.
“This comprehensive set of initiatives show true leadership and puts NSW on the global electric vehicle map.”
The $490 million package of reforms , announced on Sunday by New South Wales’s Liberal energy minister Matt Kean, includes a stamp duty waiver, $3,000 rebates for up to 25,000 vehicles under $68,750, spending on charging infrastructure, and deferring a road user charge until 2027.
Foreshadowed earlier this month by NSW Transport Minister Andrew Constance, the package eclipses the mixed bag of EV reforms introduced in Victoria earlier this year and cements the NSW government’s position as the green face of the Liberals – a party that, at the federal level, remains bogged down in fossil fuel interests and climate denialism.
Denholm’s sentiments were shared across the board, including by the encumbent car indusry. The Federal Chamber of Automotive Industries, which represents traditional carmakers, welcomed the package of incentives, saying they were “consistent with actions being taken by forward-thinking governments across the world.”
“The direction being set by the NSW Government has the capacity to kick start serious EV penetration into Australia,” FCAI chief executive Tony Weber said.
Carmakers Nissan, Hyundai and Volkwagen also welcomed the reforms. Hyundai Australia’s chief operating officer John Kett, said it would make NSW “the easiest state in Australia to buy and drive an electric vehicle.
“This strategy goes a long way to making that a reality. We congratulate the State Government and recognise New South Wales as now setting the pace for the rest of Australia,” he said.
Nissan Australia’s managing director Stephen Lester said it was “extremely encouraging to see the NSW government’s strong leadership in the EV space.”
“These decisive actions are good for consumers, good for the market and ultimately good for the State’s own legislated net-zero targets. These types of policies not only accelerate the EV transition right now, but also put Australia in a stronger place for priority adoption of new vehicle technologies, sooner,” he said.
“Additionally, with the announced transition targets for its own fleet, the NSW market will see greater EV uptake because of Government purchases, but also will ultimately benefit customers by providing a vibrant second-hand EV market in the years to come.”
Utilities giant AGL – which sees EV charging services as a potential new line of business in a world where being a coal-powered gentailer no longer makes any business sense – also welcomed the move.
“Electric vehicles will play an important role in achieving the energy transition, providing new job opportunities and helping meet the NSW government’s target of net zero emissions by 2050,” acting CEO Graeme Hunt said.
“Facilitating the roll-out of electric vehicles and investing in the infrastructure needed to support their use is an important step in electric vehicles becoming a bigger part of Australian life. As Australia’s largest energy retailer and generator, we will play an important role in powering the vehicles of the future, contributing towards the decarbonisation of Australia’s transport sector.”
Unlike Victoria, which will introduce a road user charge immediately, the NSW policy will defer the introduction of a road user charge until 2027. However, Kean said a road user charge would need to be introduced to make up for lost revenue from fuel excise.
The FCAI argues that road user charging should be in place across the board, including for combustion vehicles – and it has been lobbying on a somewhat radical platform to have them replace most, if not all, car taxes including import and stamp duties.
“As the future of mobility continues to rapidly transform, now is the time for Governments to relieve motorists of a myriad of outdated, confusing and inefficient charges and replace them with a simplified road user charging approach.”
Environment groups also welcomed the announcement.
“This is an historic and very welcome package from a government that has significantly increased its commitment to climate action over the past few years,” Nature Conservation Council chief executive Chris Gambian said.
“It will not only reduce the climate impact of road transportation, it will reduce the health impact that cars have on people by improving air quality across our congested cities.
“I commend the Premier and all the ministers who have made this possible, including Treasurer Dominic Perrottet, Transport Minister Andrew Constance, Deputy Premier and Regional NSW Minister John Barilaro, and Environment Minister Matt Kean.”
The broad support for the policy demonstrates one of the more perplexing features of the federal government’s obstinate refusal to back EVs.
Unlike the huge domestic coal and gas industries, which operate powerful, influential lobby groups in Australia, there are no powerful entrenched interest groups in Australia fighting against the roll-out of EVs. Even fuel supplier Ampol seems to see the writing on the wall, and says it plans to get into the EV charging business.
James Fernyhough is a reporter at RenewEconomy and The Driven. He has worked at The Australian Financial Review and the Financial Times, and is interested in all things related to climate change and the transition to a low-carbon economy.