. Mr Bowen used an EV summit in Canberra on Friday to release a discussion paper on the government’s strategy, expected to include carbon emissions rules on new car sales.Mr Bowen said high prices and long delivery times were slowing take-up, making Australia a “dumping ground” for expensive and outdated models. Fewer than 10 models under $60,000 are on sale in Australia.
“Given the cost of EVs, their limited supply and the lack of infrastructure, it seems the cost of this initiative is not warranted, particularly given the small number of vehicles that is anticipated to take advantage of this initiative over the three-year exemption period.”Mr Greco recommended adopting fuel standards, exempting public transport and tightening some eligibility rules.
“Without the tax exemption, employer-provided electric cars are subject to disadvantageous fringe benefits tax treatment compared to internal combustion engine cars because of their relatively higher purchase price and low running costs,” Mr Trainor said. The proposed changes will apply to zero- or low-emission vehicles, including battery EVs, hydrogen fuel cell electric cars and plug-in hybrids, held and used from July 1 this year. To be eligible for the tax exemption, the value of the car must be below the luxury car tax threshold. In 2022, the threshold for fuel-efficient vehicles is $84,916.