{"id":19355,"date":"2025-09-15T11:46:00","date_gmt":"2025-09-15T01:46:00","guid":{"rendered":"https:\/\/electricvehiclecouncil.com.au\/?p=19355"},"modified":"2025-09-15T16:03:53","modified_gmt":"2025-09-15T06:03:53","slug":"modelling-shows-electric-car-discount-could-halve-vehicle-emissions-if-continued-to-2035","status":"publish","type":"post","link":"https:\/\/electricvehiclecouncil.com.au\/media-releases\/modelling-shows-electric-car-discount-could-halve-vehicle-emissions-if-continued-to-2035\/","title":{"rendered":"Modelling shows Electric Car Discount could halve vehicle emissions if continued to 2035"},"content":{"rendered":"<p><b><\/b><span style=\"font-weight: 400;\">New research shows that keeping the Electric Car Discount in place for a decade could halve vehicle emissions compared with ending the policy earlier, whilst tripling value for money through health, environmental and economic benefits.<\/span><\/p>\n<p><a href=\"https:\/\/drive.google.com\/file\/d\/1O8qWGyU0_aOd9Q9krv-qZ0JHQX8-313-\/view?usp=sharing\"><span style=\"font-weight: 400;\">Independent modelling<\/span><\/a><span style=\"font-weight: 400;\"> by Magenta Advisory and Pragmatic Policy Group (PPG) has found continuing the Fringe Benefit Tax (FBT) exemption for battery electric vehicles (BEV) and reinstating it for plug-in hybrids (PHEV) until 2035 would likely result in 50 per cent lower carbon emissions compared to a scenario where the discount ends in 2027.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The research also estimates that every $1 spent on the EV Discount has delivered $2.25 in environmental, economic and health benefits &#8211; a return that is expected to rise to $3 by 2030.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Commissioned by the Electric Vehicle Council (EVC), the National Automotive Leasing and Salary Packaging Association (NALSPA) and the Australian Finance Industry Association (AFIA), the research also found:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EV Discount is estimated to have placed an extra 105,500 new BEVs and PHEVs on Australian roads between 2022 and 2024.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Since Q1 2022, used EV sales have increased by 157%, with 61,000 EVs entering the second-hand market &#8211; this would be much smaller without the exemption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the EV Discount continues for BEVs and returns for PHEVs until 2035, it could deliver an additional 1.5 million new BEVs, 200,000 new PHEVs, and 870,000 used EVs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In every country with strong EV uptake, governments have paired demand-side incentives with supply-side measures over a sustained period of time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The top 10 postcodes for EV novated lease sales are in the outer suburbs of Melbourne, Sydney, and Brisbane, averaging 44 km, 37 km, and 31 km from their city centres respectively.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The findings will form the basis of the EVC\u2019s, NALSPA\u2019s and AFIA\u2019s evidence to the Productivity Commission with submissions to its net zero transformation interim report closing today.\u00a0<\/span><\/p>\n<p><b>Electric Vehicle Council CEO Julie Delvecchio said:<\/b><span style=\"font-weight: 400;\"> \u201cThis<\/span> <span style=\"font-weight: 400;\">modelling shows the Electric Car Discount has already put 105,500 new EVs on the road and boosted the used EV market &#8211; a real win for Aussie families who want to make the switch and save on fuel.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cKeeping this support until 2035 and bringing back plug-in hybrids into the scheme could deliver hundreds of thousands more new and second-hand EVs, making them affordable for more households, including young people and lower-income families.<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u201cWhen more Australians can afford an EV, we all benefit. Quieter streets, cleaner air, and healthier neighbourhoods are the ripple effects of a strong EV market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWith transport on track to be Australia\u2019s largest emitting sector, incentives like the EV Discount are critical to hitting our climate goals. Every new vehicle purchased today locks in another fuel guzzler or a cleaner car for decades to come.\u201d<\/span><\/p>\n<p><b>NALSPA chief executive Rohan Martin said: <\/b><span style=\"font-weight: 400;\">\u201cAustralia\u2019s EV uptake is rising thanks to the EV Discount, but we still trail global leaders. This research confirms that every country with strong EV adoption has paired buyer incentives with supply measures &#8211; clear proof that continuing government support through the EV Discount is vital to keep momentum and grow the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe modelling shows the EV Discount is making the switch within reach for everyday Australians and boosting the supply of affordable second-hand EVs. The Electric Car Discount has been helping tens of thousands of everyday working Australians afford the upfront cost of an electric vehicle, and once they\u2019re behind the wheel, they\u2019re saving thousands each year on running costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFrom Werribee and Baulkham Hills to Springfield and beyond, the Electric Car Discount is popular with families on middle incomes who live in the outer suburbs. Teachers, nurses, and firefighters all tell us that they wouldn\u2019t have made the switch without the Discount.\u201d<\/span><\/p>\n<p><b>AFIA chief executive officer Diane Tate said:<\/b><span style=\"font-weight: 400;\"> \u201cThe EV Discount is a proven policy that&#8217;s driven real change by helping over 100,000 Aussies get behind the wheel of vehicles that are cleaner, cheaper to run and increasingly affordable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;To make cleaner vehicles accessible for all Australians and stay on track for net zero, we need a suite of national policies that are proven to deliver such as upfront discounts, fast-tracked charging infrastructure and stronger public-private partnerships like those with the CEFC. Now is the time to double down, not pull back. In fact, we shouldn\u2019t just be continuing our support for the EV Discount, we should bring it back for plug-in hybrids \u2013 these vehicles are really popular, especially as Australia lags on our charging infrastructure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe finance industry is already doing the heavy lifting to fund Australia\u2019s transition, but we can\u2019t do it alone. Without clear, consistent, and future-focused policy from government, we risk stalling just as momentum is building.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The report can be accessed <\/span><a href=\"https:\/\/drive.google.com\/file\/d\/1O8qWGyU0_aOd9Q9krv-qZ0JHQX8-313-\/view?usp=sharing\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\"> and key findings can be found <\/span><a href=\"https:\/\/drive.google.com\/file\/d\/1eQ5uUuxFizg6Amp1v_HBxE7fW571iiCo\/view?usp=sharing\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><b><\/b><\/p>\n<div class=\"clearfix\"><\/div>","protected":false},"excerpt":{"rendered":"<p>New research shows that keeping the Electric Car Discount in place for a decade could&#8230;<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[47],"tags":[],"class_list":["post-19355","post","type-post","status-publish","format-standard","hentry","category-media-releases"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/posts\/19355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/comments?post=19355"}],"version-history":[{"count":3,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/posts\/19355\/revisions"}],"predecessor-version":[{"id":19360,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/posts\/19355\/revisions\/19360"}],"wp:attachment":[{"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/media?parent=19355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/categories?post=19355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/electricvehiclecouncil.com.au\/wp-json\/wp\/v2\/tags?post=19355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}