EV Council says Electric Car Discount Bill must pass

Electric Vehicle Council CEO says subsidies bill must go through, but Senator David Pocock and the Greens say hybrids cannot be included.

The Electric Car Discount Bill “has been delayed since July” and needs to pass, says CEO of The Electric Vehicle Council CEO Behyad Jafari.

“My position is that this is urgent. The bill has been delayed and it shouldn’t be delayed any further,” he said.

“The priority should be for the bill to pass as there are customers waiting to access it.”

Jafari said that the bill, which was introduced on 27 July, represents a first tangible step in making EVs accessible in Australia for every day Australians.

Jafari’s comments come as Independent Senator for the ACT David Pocock and the Greens continue to block the bill over the inclusion of hybrid vehicles. 

Pocock argues only 100 per cent renewable vehicles should be included in the bill, which proposes electric fleet cars be exempt from fringe benefit tax (FBT) as long as the cost per vehicle is under $84,916.

Jafari explains that regular hybrids use fuel exclusively to power the battery in an electric car and plug-in hybrids use both electric energy and fuel for the same task.

“I can understand the concerns from the Greens and Pocock regarding wanting 100 per zero emissions vehicles exclusively on the discount bill,” he said.

“However my position is that there are customers who are waiting to see it passed so they can use the savings.”

Jafari also added that the focus in Australia should be on developing fuel efficiency standards in-line with the rest of the world.

His comments come as the Albanese government released a national EV consultation paper ahead of the proposed National Electric Vehicle Strategy.

“It is a breath of fresh air to see a federal government take this issue so seriously, acting on a national policy within the first months of its administration,” Jafari said.

“The discussion paper is correct to focus on demand and supply as the necessary first steps towards building a dynamic domestic EV sector.

“Australia can absolutely be an EV powerhouse, employing Australians to build products right across the EV supply chain. But we won’t realise those opportunities while our standards lag the rest of the world.”

Pocock said in an interview with Pro Bono News that hybrids should not be a part of the government’s Electric Car Discount Bill at all if Australia wants to stimulate the electric car market.

He said the fringe benefit discount proposed by the bill is to promote the electric car market, however hybrids use “50 per cent petrol” and that if the government is going to promote electric vehicles, it should do it properly.

 “We need to speed up the transition to electric vehicles. A second hand market for EVs is one of the motivations of this bill. Modelling shows hybrids use petrol about half of the time,” he said.

But Pocock agreed with Jafari that Australia’s lack of clear emissions standards is stopping electric vehicle manufacturers exporting to Australia.

“There is not a lot of incentive for [manufacturers] to move their EVs here at the moment,” he said.

“The quantity and the range of models needs to improve to see a full transition.”

Pocock reiterated that a second hand electric vehicle market is what we want.

“This bill could inadvertently end up being a subsidy for $1 billion worth of petrol-using hybrids.

“This is a hand out to, generally speaking, wealthier Australians. That money could be put towards more charging infrastructure,” he said.

Minister for climate change and energy Chris Bowen said the transport sector is one of the fastest-growing sources of emissions in Australia.

“A stronger uptake of electric vehicles can make a substantial impact in our efforts to tackle climate change.

“Importantly – as families struggle with the rising cost of fuel – encouraging more affordable EVs into the market is an important step in addressing transport costs over the medium term and building resilience to global oil prices,” he said.

“This legislation will encourage greater take up of electric cars and contribute to reducing transport emissions.”

The government proposes the FBT exemption will be implemented as an ongoing measure and reviewed after three years in light of electric car take-up to ensure it remains effective.

In the lead up to the election Prime Minister Anthony Albanese intimated his government intended to make electric cars affordable for everyday Australians.

“There are no electric cars available in Australia for under $40,000, and just five for under $60,000,” he said in a statement.

“In comparison, there are more than two dozen electric cars available in the UK for under AU$60,000 – including eight that are cheaper than the cheapest electric car in Australia.

“This is because the UK Government, and governments around the world, have introduced incentives and policies to help electric cars compete with older technology with lower upfront costs,” he said.