{"id":19695,"date":"2026-02-09T10:49:16","date_gmt":"2026-02-08T23:49:16","guid":{"rendered":"https:\/\/electricvehiclecouncil.com.au\/?p=19695"},"modified":"2026-02-09T10:49:16","modified_gmt":"2026-02-08T23:49:16","slug":"electric-vehicle-sector-urges-government-not-to-hit-the-brakes-on-electric-car-discount","status":"publish","type":"post","link":"https:\/\/electricvehiclecouncil.com.au\/media-releases\/electric-vehicle-sector-urges-government-not-to-hit-the-brakes-on-electric-car-discount\/","title":{"rendered":"Electric Vehicle Sector Urges Government Not to Hit the Brakes on Electric Car Discount"},"content":{"rendered":"

The transition to cheaper-to-run, cleaner vehicles for Australian drivers could stall if the Federal Government makes significant changes to tax rules that have supercharged EV sales since July 2022.<\/em><\/strong><\/p>\n

In its submission to the Federal Government\u2019s statutory review of the Electric Car Discount, the EVC said the policy has been a game\u2011changer – propelling more than 105,000 additional EV purchases, tripling the size of the second-hand EV market<\/strong> and delivering up to $3 in economic and health benefits for every dollar invested<\/strong>.<\/p>\n

EVC CEO, Julie Delvecchio<\/strong> said the industry welcomed the review of the Electric Car Discount at a time when policy certainty around accelerating EV uptake remained critical to Australia\u2019s 2035 emission reduction targets.<\/p>\n

\u201cThe Electric Car Discount has helped take Australia from an EV trickle to a real market for people who want to drive cleaner cars and save up to $3,000 each year on fuel and maintenance,\u201d Ms Delvecchio said.<\/p>\n

\u201cWith EV upfront costs still higher than comparable internal combustion engine cars, tens of thousands of Australians living in outer suburbs – including firefighters, teachers and nurses – could only afford their first EV thanks to the Electric Car Discount.<\/p>\n

\u201cThe Discount has also stimulated a wave of affordable, off-lease EVs that are now flowing through to the second-hand market, putting them within reach of more everyday Australians.<\/p>\n

\u201cHowever, the job is not done. Australia\u2019s EV adoption needs to accelerate towards the target of 5 million EVs by 2035, and international experience clearly shows that removing demand-side incentives too soon can have a drastic impact on EV uptake.<\/p>\n

\u201cWe know the risks that come with removing EV incentives too early. Canada and Germany have both recently re-introduced EV subsidies worth $CAD2.3 billion and \u20ac3 billion, respectively, after the premature withdrawal of incentives reduced EV sales by up to 12 per cent.<\/p>\n

\u201cWe look forward to working with the Government to ensure the Electric Car Discount continues to support the growth of EVs which is central to Australia achieving its emission reduction goals\u201d, Ms Delvecchio said.<\/p>\n

Electric Car Discount has delivered big results<\/strong><\/p>\n

The EVCs submission highlights the many achievements the Electric Car Discount has delivered:<\/p>\n