The Greens and the government have agreed on amendments to the Treasury Laws Amendment (Electric Car Discount) Bill 2022 that prioritise electric vehicles over plug-in hybrids that rely on petrol. The agreement also includes shifting the Commonwealth fleet to electric vehicles.
Greens Leader and Climate Change spokesperson Adam Bandt MP has been negotiating with the Government in recent weeks to limit funding to petrol powered hybrids and to increase support for electric vehicles. Without the Greens’ votes in the Senate, the government was unable to pass the bill.
The government has agreed to support changes to the bill that will limit the support for plug-in hybrids and prioritise full electric vehicles, including:
- Sunsetting support for petrol-based plug-in hybrids on 1 April 2025 (in 2 years and 4 months’ time); and
- Prioritising zero-emission electric vehicles in the Australian government fleet procurement policy, by removing plug-in hybrid vehicles except in exceptional circumstances.
The ATO will also issue guidance on when household charging technology is able to be included within FBT-exempt vehicle packages.
With the amendments sought by Mr Bandt secured, Greens Senators will support the EV bill being passed by the Senate this week.
“The Greens have fast-tracked electric vehicles,” Mr Bandt said. “The government fleet will go electric, and when these cars are sold second hand, it will help bring the cost down of EVs for everyday people.
The Electric Vehicle Council has welcomed the deal and said it will enable thousands more Australians to access the benefits of electric vehicles by exempting EVs from import tariffs and from fringe benefits tax, making the vehicles more affordable for employers to include in salary packages.
“This is a landmark moment for EV policy in Australia. It’s a powerful demonstration of how far we’ve come in just a few short years,” said Electric Vehicle Council chief executive Behyad Jafari.
“This bill will allow thousands more Australians to get behind the wheel of an EV where they can access the benefits of lower fuel bills, cutting pollution, and an enjoyable driving experience.
“Making new EVs easier to buy will turbocharge the creation of a strong second-hand market for EVs, which is vital for affordability.
“If the federal government combines this bill with new fuel efficiency standards we will soon see a market develop in Australian through which everyone will be able to enjoy the benefits of EVs.
“By achieving stronger EV uptake we will significantly lower Australia’s carbon emissions and reduce our precarious dependence on foreign oil.
“On behalf of the electric vehicle sector I congratulate the government, and the crossbench senators, for striking this deal in the national interest.”
