Commission Report Criticized on EV FBT Exemption

Statement from National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin responding to the Productivity Commission's interim report 'Investing in cheaper, cleaner energy and the net zero transformation': "The Productivity Commission's interim report on the net zero transformation provides an inconsistent set of views and recommendations. "We agree with the Productivity Commission's assessment that Australia needs consistent and comprehensive incentives to reduce emissions and achieve net zero. "The Productivity Commission also concedes that to change behaviour, light vehicle drivers may need 'a purchase incentive to encourage buyers to choose more fuel-efficient vehicles.' "But the Productivity Commission is both inconsistent and wrong in our view to suggest the government should phase out the Electric Car Discount (EV Fringe Benefits Tax exemption) and state-based incentives that are helping to drive EV uptake. "Arguing that the EV Discount is no longer required because of the New Vehicle Efficiency Standard doesn't stack up. The NVES and the FBT exemption are complementary, not interchangeable. Globally, the most successful EV transitions have followed a clear roadmap: a mix of 'carrot and stick' policies, combining purchase incentives with strong emissions standards. "With transport set to become the nation's largest emissions source by 2030, encouraging Australians to switch to low and zero-emissions vehicles is imperative. "The EV Discount is a major Albanese Government policy success that is supporting about half of all new EV purchases today. It is doing exactly what the Government intended it to do: driving the uptake of both new and second-hand EVs, shaping lasting consumer driving preferences, and cutting transport emissions - a sector that is notoriously difficult to decarbonise. "This important policy is encouraging and helping more everyday working Australians - particularly those living in the outer suburbs - make the switch to cleaner, cheaper-to-run cars. Many of the workers including the nurses, teachers, and firefighters living in the outer suburbs tell us they simply would not have bought an electric vehicle without the support of the Electric Car Discount. "We welcome the opportunity to make comment on the interim report and we look forward to engaging constructively with the Productivity Commission."