ACT Urged to Rethink Budget Threat to EV Growth

The ACT Government's decision to remove the Territory's motor vehicle duty concession for electric vehicles risks significantly slowing the Territory's EV uptake and should be reconsidered, according to the Electric Vehicle Council. In the fine print of the ACT Budget is a policy shift set to take effect from 1 September 2025, which will see all new zero-emission vehicle transactions attract a minimum duty rate of 2.5%, undermining affordability. Additionally, vehicles valued over $80,000 will attract a higher duty rate of 8%. This change would immediately add approximately $1,725 to the duty paid on a typical $60,000 battery electric vehicle (BEV) in the ACT. "This decision risks slamming the brakes on the progress that the ACT is making in EV uptake," EVC chief executive Julie Delvecchio said. "The ACT stands out as Australia's electric vehicle champion with adoption rates that surpass every other state and territory, and that's largely driven by strategic incentives that get drivers to make the switch. "Incentives such as duty concessions and the Fringe Benefits Tax (FBT) exemption are essential to support and accelerate EV adoption, especially in these early stages of the transition when widespread uptake is crucial. "Demand-side incentives for EVs help overcome cost barriers, encouraging uptake among people who may not have otherwise made the switch. That initial switch is crucial because once people drive electric, they almost always remain electric. Removing incentives risks reversing this progress and undermining Australia's emissions reduction efforts. "We're calling on the ACT Government to reconsider this policy shift, stay on track with its progress, and support its goal of environmental sustainability by maintaining financial incentives for EV adoption."