“Unnecessary:” Another state pulls EV rebates, despite growing budget surpluses

South Australians will lose a $3000 electric vehicle incentive as the state government banks growing budget surpluses over the next four years.

Rising tax takes will boost the state’s bottom line even as debt continues to grow, the government’s mid-year budget review revealed on Thursday.

The state’s strong financial position was vital for the government’s ability to invest in crucial infrastructure and skills, Treasurer Stephen Mullighan said.

“It’s important that if we’re going to borrow more money on the state’s balance sheet, we do that to invest in productive infrastructure which will deliver benefits to the community in the decades to come, rather than borrowing more money to offset those continuing operating deficits as we’ve seen in the previous three financial years,” he told reporters.

Cut from the budget was a $3000 rebate for new electric vehicle purchases, which Mullighan said was unnecessary after the federal government introduced incentives worth $12,000.  (Editor’s note: We’re not sure what he’s referring to here). The move follows NSW and Victoria axing similar payments.

The Malinauskas government had already abolished a tax on electric vehicles which would have slugged a typical driver an extra $375 a year, the treasurer said.

AAP