The Victorian Labour Government was the first to cancel the rebates that encouraged people to buy electric vehicles. Now the NSW Labour Government has followed their lead in the latest budget. It reconfirms that while we have one national flag, we’re operating under different idealogies.
While these rebates were only available to private buyers, not fleets, there’s plenty of commentary available. Here’s some of the industry reaction to the announcement.
Collin Jennings, Head of Government Relations & Advocacy at MTA NSW said:
“MTA NSW is disappointed with the NSW Government’s decision to scrap rebates for electric vehicles (EVs).
“The rationale behind the decision is incoherent. According to the Treasurer, the rebates are criticised for only benefiting the wealthy, but in removing them, the only people who will be able to afford an EV are the wealthy.
“This policy decision will slow down the availability of EVs across the country. New South Wales is currently the largest market for vehicles in Australia, but if there is no incentive to switch to electric, manufacturers will simply not send cheaper vehicles to our market.
“There remains at least a 25 per cent price differential between Internal Combustion Engine (ICE) vehicles and EVs. Government rebates level the playing field and make EVs more accessible.
“As manufacturers work toward introducing more affordable EV models to market, the rebates play a crucial role in helping middle and lower-income earners make the decision to go electric. This is particularly important at a time when cost of living is a significant issue across the country. Affordable EV benefits can significantly impact week-to-week budgets, and make a considerable difference to households.
“Scrapping the EV rebate will also contribute to ageing the current fleet, resulting in NSW having older and more polluting vehicles on our roads for longer.
“We are disappointed that the state government did not consult the industry before making this decision. If we are to achieve current carbon reduction targets (noting that transport nationally contributes to 20% of all emissions) then we need to look at all avenues to reduce those emissions. We cannot achieve the target if we reduce the number of EVs on the road.”
Bevan Guest, CEO, Novated Lease Australia, said:
“Novated Lease Australia welcomes any initiatives or investments that promote the uptake of electric vehicles (EVs) and supports EV drivers.
“We have witnessed a growing adoption of EVs within our own portfolio. Currently, our portfolio consists of 52 per cent EVs and in our upcoming vehicle orders, 63 per cent are EVs. This signifies a noteworthy 21 per cent surge in EV orders compared to internal combustion engine (ICE) vehicles. This growth is particularly significant given that more than half of our current portfolio already consists of EVs.
“The removal of the $3,000 NSW Government EV rebate will be seen as a blow to those choosing to acquire their EV through a loan or cash. To put it into perspective, over a five-year period, purchasing a Tesla Model 3 RWD outright costs $81,102 while obtaining it through a car loan totals $89,184 (this price includes *running costs) while a novated lease allows you to acquire the same car for $68,369.
“Choosing a novated lease for purchasing an EV also offers the opportunity to receive the extensive tax savings in the tens of thousands through the continuing Fringe Benefits Tax (FBT) exemption.
“Now, in the absence of a rebate, the advantages of a novated lease over cash payment, when considering the comprehensive cost of EV ownership including insurance, registration, tyres and maintenance presents an even more compelling financial proposition.”
*Running costs include registration, CTP, comprehensive insurance, tyres and maintenance.
EVC chief executive Behyad Jafari said that the government’s proposed move was a betrayal of voters.
“I doubt the people who voted for this government thought they were voting to cut electric vehicle incentives to fund handouts to coal-fired power stations,” Mr Jafari said.
“Labor backed these EV incentives when the former government introduced them, and did not give any indication they were planning to cut them before the election.
“The NSW incentives, combined with more affordable EV imports, were just starting to drive significant uptake in Sydney’s west and the state’s regions. Now the government wants to kill that momentum.
“Wealthy people on the north shore will be fine under this change – they’ll continue to buy EVs, because they know they’re a superior option. But less well-off families in the west will be forced to stick to costly gas guzzlers and a time when petrol prices are going through the roof.
“What’s particularly galling is the reintroduction of stamp duty that was due to be replaced by road user charges in 2027. This important tax reform was in the best interest of motorists by replacing an upfront tax that often stopped people from getting into a newer, cleaner car.
“By reintroducing stamp duty for EVs the NSW Government has broken faith with voters.
“Fewer EVs means dirtier Sydney air, continued reliance on foreign oil imports, higher carbon emissions, and more budget pressure on everyday households. It’s foolish, short-sighted policy from a government that people would have expected more from.”
Mr Jafari urged the NSW Parliament to reject Labor’s changes in order to preserve the benefits of the existing policy settings.
“NSW was making outstanding progress on EV uptake under the previous government and the current policies were voted for by the Coalition, the Greens, and Labor,” Mr Jafari said.
“The Opposition, the Greens and the others in the NSW Upper House should defend the state’s interests and oppose the government’s short-sighted backflip.”
