The Albanese Government's Electric Car Discount is a proven success that is driving EV uptake, cutting emissions and easing cost-of-living pressures, according to the nation's peak body for novated leasing. In its submission to Treasury's review of the Electric Car Discount, otherwise known as the EV FBT exemption, the National Automotive Leasing and Salary Packaging Association (NALSPA) said the discount is:
- Accelerating EV uptake: Adding more than 100,000 EVs on Australian roads so far, and lifting BEV market share from 1.4% in 2021 to 8.3% in 2025
- Reducing transport emissions: Cutting 160,000-200,000 tonnes of CO2-e emissions each year, based on the EVs already sold with the policy's support
- Improving BEV affordability and access: Helping expand model availability, cut prices by 8.6%, and increase second-hand sales six-fold since the policy began
- Providing cost-of-living relief: Supporting everyday Australians to afford the upfront cost of EVs and benefit from lower ongoing running costs, translating into reduced transport expenses and improved household cash flow – particularly for outer suburban working households.
NALSPA chief executive Rohan Martin said the Electric Car Discount is a resounding success on multiple fronts, delivering benefits in the national interest. "The Electric Car Discount was introduced to drive up EV uptake, drive down emissions and make EVs more affordable, and it has been a remarkable success for the government on all fronts," Mr Martin said. "This policy has successfully made cleaner cars more affordable for more Australians. That being said, our BEV market share remains ~40% below comparable economies, so we have much heavy lifting to do yet. "The policy aimed to add around 5,000 EVs to Australia's roads in its initial years, but its success to date has meant that it's delivered more than 100,000 EVs and counting. The Electric Car Discount is most popular with outer-suburban families and it is estimated it is responsible for at least half of all EVs sold in Australia today. "With significant cost-of-living pressures persisting, the Electric Car Discount is more important than ever. The Discount is making a real difference to everyday working Australians, helping them afford the upfront cost of an EV and importantly enabling them to benefit from ongoing savings on driving expenses. "This is the major policy driving EV uptake. Support incentives are the push that people need to become early adopters of sustainable choices that eventually become the norm. Australia's rooftop solar and home battery boom prove it. "Many Australians tell our members that they simply wouldn't have made the switch without the EV discount, as barriers like price, charging, and range anxiety persist. The discount is the nudge that's tipping Australians over the line to buy an EV, driving lasting behavioural change. "The EV Discount is proving its worth: every dollar is delivering more than double the value in economic, environmental and health returns. "We still have such a long way to go in our EV transition and pressure is mounting. Australia lags significantly behind other countries on EV market share, and transport is set to become our largest emissions source by 2030. The Climate Change Authority says we need 20 times more EVs on the road within the decade to meet Australia's climate targets. "Australia cannot overcome these challenges without the Electric Car Discount, which is doing the heavy lifting on our country's EV transition."
