Since the introduction of the Electric Car Discount Bill in 2022, sales of electric vehicles have soared with novated lease buyers taking full advantage of the FBT Exemption. However, many Fleet Managers are concerned about the delivery dates of their PHEVs because the benefits provided by the legislation won’t apply to vehicles delivered after 31st March 2025.
Plug-in Hybrids are generally misunderstood by new car buyers and the fleet community because they come with a cable that can be plugged into a power socket. This encourages a binary thought process which leads to the misconception that if it’s not plugged in, you won’t reduce fuel consumption and CO2 emissions.
The sales of PHEVs have increased locally as more Fleet Managers understand the opportunity to use PHEVs as a stepping stone on the journey to a fleet of electric cars. However global demand is restricting supply and the looming deadline in the Electric Car Discount Bill is creating uncertainty.
At a recent event to launch the first large scale charging depot for electric trucks, Chris Bowen, Minister for Climate Change and Energy, explained that the crossbench in parliament have the power to decide if PHEVs will flourish, or become obsolete technology.
“On hybrids, it’s no secret that there was an arrangement to get it (Electric Car Discount Bill) through the parliament,” said Minister Bowen. “That was the arrangement entered into with the crossbenchers. We proposed that the tax cut apply to all electric vehicles and hybrids. To get it through the parliament, we agreed for a separate arrangement on hybrids.”
“Obviously, I’m happy to talk to crossbenchers going forward about whether we need to do more on hybrids. Because I understand, the government understands, that people are on a journey. Not everyone is ready to buy an EV; a full EV.”
“Some people are looking to buy hybrids first as part of their journey, depending on their own circumstances. It’s about choice for us and all our policies; (fuel) standards; tax cuts. It’s about providing better choices for people. But the law as its passed was the arrangement necessary to get it through the parliament.”
