The Driven
  • EV News
    • Electric Cars
    • Electric Bikes
    • Electric Boats
    • EV Conversions
    • Electric Flight
    • Electric Transport
    • Hydrogen Fuel Cell
    • Batteries
    • Charging
    • Policy
  • EV Models
  • EV Sales
  • Road Trips
  • Reviews
  • Multimedia
    • Podcasts
    • Videos
  • EV Explainers
    • FAQs
    • Readers’ Questions

The Driven
The Driven
  • EV News
    • Electric Cars
    • Electric Bikes
    • Electric Boats
    • EV Conversions
    • Electric Flight
    • Electric Transport
    • Hydrogen Fuel Cell
    • Batteries
    • Charging
    • Policy
  • EV Models
  • EV Sales
  • Road Trips
  • Reviews
  • Multimedia
    • Podcasts
    • Videos
  • EV Explainers
    • FAQs
    • Readers’ Questions
Comments
  • Electric Cars
  • Policy

Labor discount plan to bring down cost of electric cars to take effect on July 1

  • June 22, 2022
  • No comments
  • 2 minute read
  • Michael Mazengarb
Federal Labor leader Anthony Albanese, Chris Bowen and Ed Husic visiting a Nissan Leaf electric car dealer
Federal Labor leader Anthony Albanese, Chris Bowen and Ed Husic visiting a Nissan Leaf electric car dealer. Source: Anthony Albanese/Facebook
Share 39
Tweet 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0

Some electric vehicle models should become cheaper from July 1, with the Albanese government confirming it will honour a promise to provide exemptions from certain federal taxes from the start of that month.

The Driven has confirmed that the Albanese government intends to fulfil its promised “Electric Vehicle Discount” policy, which will provide exemptions to certain import tariffs and fringe benefits taxes, with effect from 1 July 2022.

The import tariff levies a 5 per cent tax on cars brought to Australia from overseas manufacturers, adding thousands to the cost of a new vehicle.

The import tariff exemption won’t benefit all electric vehicle models, as car imports from several countries are already exempt under free-trade agreements, but it should help cut the cost of vehicles imported from Japan, South Korea and most of Europe.

This would see the import tariff lifted on vehicles like the Nissan Leaf, the Mercedes EQA, the Hyundai Kona EV, and the Mini Cooper SE.

The fringe benefits tax applies to vehicles provided by employers for their employees’ personal use and attracts a 47 per cent tax rate on the financial benefit of the arrangement.

Labor said that the fringe benefits tax exemption could cut the effective cost of electric vehicles by as much as $12,000 – and should have flow-on benefits for the second-hand EV market.

Both exemptions will apply to electric vehicles with a sale price below the luxury car tax threshold for fuel-efficient vehicles, which sat at $77,565 in 2020-21.

Labor said the threshold would help reduce the cost of cheaper electric vehicle models and encourage manufacturers to bring more lower-cost EVs to The Australian market.

Before the election, Labor had promised that the measures would take effect from July 1, 2022 – to be reviewed after three years.

This would see the discount apply to new EV purchases before the new federal parliament convenes for the first time – but the passage of legislation with retrospective effect – which is often the case with tax measures – will allow the federal government to avoid any delay in its effective implementation.

A similar arrangement was followed by the NSW Government when it introduced its $3,000 rebate for the purchase of new electric vehicles and a waiver of stamp duty fees, with legislation being passed by the state parliament after the incentives took effect.

The federal ‘electric vehicle discount’ policy would likely be included in a package of measures in the Albanese government’s first federal budget, scheduled to be handed down in late October.

Michael Mazengarb
Michael Mazengarb is a Sydney-based reporter with RenewEconomy, writing on climate change, clean energy, electric vehicles and politics. Before joining RenewEconomy, Michael worked in climate and energy policy for more than a decade.
Share 39
Tweet 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Share 0
Related Topics
  • Albanese
  • Chris Bowen
Get the free daily newsletter

I agree to the Terms of Use

Trending posts
  • Akio Toyoda with electric vehicle range Toyota faces disaster unless new CEO performs miracle pivot to electric vehicles posted on January 30, 2023
  • Polestar 2 MY2024 Polestar 4, its Tesla Model Y sized electric SUV, spotted for first time posted on January 27, 2023
  • petrol vs electric vehicle costs To EV or not to EV? A clear cost analysis between electric vehicles and ICE cars posted on February 2, 2023
  • The Hyundai Kona Electric has a 64kWh battery and 480km range. Credit: Bridie Schmidt “Sorry, I went ballooning:” It’s high time charging networks cracked down on EV squatters posted on January 26, 2023
EV Explainers
  • tesla charging Where can you charge a Tesla or other electric car for free? posted on February 27, 2022
  • vanderstock zappi How to save thousands when installing an EV charger at home posted on July 15, 2022
  • Charging battery of an electric car - optimised EastLink The top ten electric vehicle myths that need to be debunked posted on November 3, 2021
  • tesla model 3 charging Which electric car delivers the best driving range for your dollar? posted on May 3, 2022
Emissions counter
  • EV News
    • Electric Cars
    • EV Conversions
    • Electric Boats
    • Electric Bikes
    • Electric Flight
    • Electric Transport
    • Electric Work Vehicles
    • Hydrogen Fuel Cell
    • Charging
    • Policy
  • EV Explainers
  • EV Conference
  • EV Models
  • EV Sales
  • Road Trips
  • Multimedia

the driven electric vehicle podcast

Get the free daily newsletter

I agree to the Terms of Use

Follow The Driven on Socials
The Driven
  • About The Driven
  • Get in Touch
  • Advertise
  • Terms of Use
  • Privacy Policy
  • Feedback
X
Aust's only instant solar & battery comparator. Since 2008.
Solar Choice

Input your search keywords and press Enter.