SA Tax Scrapped as EV Interest Soars

Australia Institute

Public policy think tank the Australia Institute has welcomed the passage of the South Australian Government’s Motor Vehicles (Electric Vehicle Levy) Amendment Repeal bill, scrapping the former Government’s EV Tax.

The bill’s passage comes as research from the Australia Institute shows that interest in purchasing an EV has increased significantly among South Australians.

Key Findings:

  • A majority of South Australians (56%) are considering purchasing an EV as their next vehicle, which is 14% higher than August 2021.
  • This includes one in four (25%) who say their next car definitely will be an EV and one in three (31%) who say their next car may be an EV.
  • Liberal voters were the most likely to say their next car definitely will be an EV, at 34%, compared with 28% of Greens voters and 13% of Labor voters.
  • Of those South Australians considering purchasing an EV, more than one in two (56%) were doing so to help tackle climate change while 48% were seeking to avoid paying for petrol.

“The SA Government should be congratulated for taking a leading role on EV policy and being the first jurisdiction to repeal this backwards tax on zero emissions cars,” said Noah Schultz-Byard, SA Director at The Australia Institute.

“The decision to repeal the tax has come at a key moment for electric vehicles in South Australia, as their popularity is increasing across the state and the political spectrum.

“A little over a year ago, just one in 10 South Australians said their next car was definitely going to be an EV. Now, one in four motorists say they will avoid petrol power altogether and opt for an EV when they’re next shopping for a car.

“Our research shows that the increasing cost of petrol is a significant factor for many South Australian motorists who are considering making the switch to an EV.

“With the South Australian Government following through on its promise to repeal the state’s EV Tax, it’s likely the trend towards electrification will only increase in coming years.”

The Australia Institute is an accredited member of the Australian Polling Council. The full polling brief with the long disclosure statement, including methodology, effective sample size, margin of error, and questions as they were put, is attached.

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