South Australians want electric cars, but not if government imposes EV road tax

Many South Australians are considering making the switch to an electric vehicle, but say that the state government’s proposed EV tax would make them less likely to buy an EV, accordinbg to new research published by The Australia Institute

The survey of 599 South Australians found strong support across the political spectrum for incentives to reduce the upfront cost of EVs, and 73% agreed that EVs reduce pollution and are good for the climate, public health, and the environment.

Moreover, 42% of respondents said that they were considering making their next car an EV – with 11% of all respondents saying they would definitely be buying an EV as their next car, while 31% said an EV “may be” their next car.

Unsurprisingly, 72% of South Australians say they would support the state government reducing the cost of EVs through subsidies and/or stamp duty waivers.

Most importantly, though, of this 72% who would like to see governmental support for EV purchases, political affiliation seemed of little relevance – with support for subsidies and/or waivers high among Liberal (75%), Labor (75%, and Greens (85%) voters.

The survey also showed that 69% of South Australians agreed that they would be less likely to purchase an EV if the South Australian Government introduced a Road User Charge like the Victoria’s Labor Government’s EV tax.

South Australian Treasurer Rob Lucas proposed a road user charge in his 2020-2021 budget – predicting that it would raise around $1 million a year, and which would have included a fixed component and a variable charge based on distance travelled.

However, the move was immediately ridiculed and shouted down by South Australia’s opposition Labor Party, as well as the motor vehicle industry, EV advocates and consumers, and even academics.

In February, it was reported that South Australia’s Liberal Party were still considering the introduction of a Road User Charge for EVs like the highly controversial per-kilometre EV tax that Victoria is rolling out. But the plans were put on hold in March, pushed out by 12 months to beyond the state’s next election.

“Many South Australians are considering making the switch to an electric car, but the state government’s proposed EV Tax will pull the handbrake on that enthusiasm,” said Noah Schultz-Byard, SA Director at The Australia Institute.

“South Australia is leading the nation with its adoption of wind and solar power, but those efforts will be badly undermined if the government moves ahead with its EV Tax.

“Tailpipe emissions in South Australia remain high and, in light of the IPCC’s latest report on the state of the climate, we should be doing all we can to switch to zero-emission vehicles. The South Australian Government should do a U-Turn on its plans to introduce a Victorian style EV Tax.”