South Australia's leading advocate on mobility and road safety issues – the RAA – has led the chorus of business and industry support for the Marshall Government's proposed electric vehicle subsidy, labelling it a 'step in the right direction' to help drive the take-up of zero and low emission vehicles across the state.
The RAA joins the Federal Chamber of Automotive Industries and Business SA in welcoming the new $3,000 up-front incentive as well as the delayed introduction of the proposed EV road user charge by up to 5 years to 1 July 2027, or when the sale of electric vehicles reaches 30 per cent of new motor vehicle sales in SA, whichever is earlier.
"RAA is committed to the increased uptake of zero and low emission vehicles in SA, but we also see the importance of reforming the tax system to reflect declining revenue from fuel excise and the need to ensure road transport is sustainably funded. The delay of the road user charge, along with an incentive package, should support EV uptake and ensure we have a sustainable transport funding model going forward," RAA Mobility Technology Specialist Mark Borlace said.
The Federal Chamber of Automotive Industries (FCAI) Chief Executive Tony Weber said: "The approach of the Government… is consistent with actions being taken across the world to support the introduction of new vehicle technologies that reduce CO2 emissions and meet the mobility needs of a growing number of motorists.
"The proposed customer subsidy of $3,000 for electric vehicles provides a positive signal to customers and car companies that this emerging technology is a key part of our transportation future," Mr Weber said.
It comes as Tasmania has become the latest jurisdiction (after New South Wales, Victoria and SA) to announce they will introduce a road user charge for zero and low emission vehicles from 1 July 2027, or when these vehicles make up 30 per cent of all new vehicle sales.
"We welcome the groundswell of support from key industry bodies, including the RAA, for our reform package which will help drive the take-up of zero and low emission vehicles while ensuring there is a long-term sustainable model for critical road funding," said Treasurer Rob Lucas.
"They know, as the state transitions towards a higher concentration of zero and low emission vehicles, it's vital to ensure all vehicle owners, regardless of what car they drive, contribute to the upkeep of our roads into the future.
"Many other jurisdictions acknowledge that, which is why we've seen New South Wales, Victoria and now Tasmania also announcing they plan to introduce a similar road user charge."
The proposed up-front $3,000 subsidy, similar to that offered in Victoria, would be provided to up to 6,000 full electric vehicles purchased in SA subject to the Government's new Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 passing Parliament.
