Electric Vehicle owners benefit from government initiatives
The Electric Vehicle (EV) sector might still be in its infancy with it representing 0.75% of new vehicle sales in 2020, but demand is increasing. According to the Federal Chamber of Automotive Industries, there was a 128.4% increase in EV sales to the end of April this year, compared with the corresponding period in 2020.
At beCarWise, we’ve also noticed a significant increase in demand: in the first 6 months of 2021, the number of EVs we have arranged novated leases for has almost doubled, compared to same period in 2020.
Volvo has thrown down the EV gauntlet, with marketing of its new Polestar Engineered electric cars – due to hit our shores in early 2022 – stepped up a gear in recent weeks. Tesla is already a big seller in Australia (its Corporate Program which provides company employees with exclusive benefits on vehicles), while several other major car manufacturers – e.g., Ford, Hyundai, Volkswagen and Kia – have all made commitments to go entirely or predominantly electric by the middle of the next decade.
So, what’s in it for you? Here we give a rundown of government EV policies:
At a glance:
The NSW government made a $490 million commitment, beginning 1 September 2021, that includes:
- stamp duty removed for cars less than $78,000
- $3,000 rebate for early adopters
- $171 million spent on charging infrastructure
- a commitment to change the government fleet to fully electric by 2030
The government has delayed its user-pays road tax for EVs until 2027.
The VIC government has said it wants electric cars to make up half of sales by 2030. Its $100 million package includes:
- a $3,000 subsidy for buyers of cheaper EVs
- more charging infrastructure
- a commitment to buy EVs for the government fleet
Victoria became the first Australian state to introduce a ‘user pays’ road tax for electric vehicles. From July 1 this year, owners of pure electric and plug-in hybrid cars will pay a tax on every kilometre driven, with two different per-kilometre rates depending on the vehicle:
- 2.5 cents/km for electric and other zero-emission vehicles, including hydrogen vehicles;
- 2.0 cent/km charge for plug-in hybrid-electric vehicles.
However, for EV owners with a novated lease, there’s peace of mind that all running costs are covered!
Queensland’s EV policies include:
- a $2.75 million expansion of its charging station network into western parts of the state, taking the number of government chargers from 31 to 49
- $100 annual discount on vehicle registration
- reduced stamp duty for EVs and hybrid vehicles
The ACT government is offering a range of incentives to increase the number of zero-emission cars on the road:
- until mid-2024, Canberrans who buy a new or second-hand zero-emissions vehicle will receive two years’ free registration. Vehicles that have been converted to electric and certified will also qualify for the saving, which is worth up to $1,200
- zero-emission vehicles are exempt from motor vehicle stamp duty
- the government is also rolling out 50 more charging points across Canberra over the next 12 months.
The SA government has made an $18 million commitment to EV infrastructure. It has also delayed its user-pays tax.
The WA government is making a $21 million investment in infrastructure and is committed to converting 25% of the government fleet to EVs by 2026.
The Tasmanian government plans to transition its fleet to 100% EVs by 2030 and will be investing in state-wide charging stations.
The NT government published a discussion paper on November 18, 2019, ahead of a not-yet-announced strategy and implementation plan.
At beCarWise you can rest easy knowing that all vehicle running costs – such as the tax on electric vehicles – are factored into and covered in your regular novated lease repayments. Put simply, it means that any expenses are reimbursed as part of your running cost allowance. This makes budgeting simple and payments convenient – for the life of your lease.
Photo Credit: Tesla
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