The Commonwealth Parliamentary Friends of Electric Vehicles (EVs) has today been briefed on the challenges and opportunities associated with the evolving EV landscape in Australia, including the need for continued policy support to further encourage the supply and take-up of low-emissions vehicles, namely plug-in hybrid vehicles (PHEVs).
The National Automotive Leasing and Salary Packaging Association (NALSPA) co-hosted the Parliamentary Friends of EVs event at Parliament House today, together with the support of the Electric Vehicle Council and the Federal Chamber of Automotive Industries, showcasing some of the latest and affordable battery EV (BEV) and PHEV models in Australia.
NALSPA highlighted that the increasing variety of models, as well as government initiatives such as the Fringe Benefits Tax (FBT) exemption on low and zero-emissions vehicles, are helping everyday workers afford the latest clean and energy-efficient vehicles amid high cost-of-living pressures.
With the New Vehicle Efficiency Standard to commence in 2025, the peak body for novated leasing emphasised the crucial need for ongoing government support for both BEVs and PHEVs to meet emissions goals and continue making electric driving more accessible to a broad range of Australians. NALSPA also called for greater education and awareness to help address misconceptions about EVs and to more effectively highlight their benefits to motorists.
Key points included:
- The FBT EV exemption is helping reduce the cost of low and zero-emission cars for everyday Australians, encouraging the shift toward electric driving
- Concerns about EV driving range, charging infrastructure, and availability of larger vehicle types act as barriers to broader EV adoption which is evidenced in their slowing take-up rate. However, PHEVs are emerging as a practical transitional solution with government policy support
- NALSPA estimates about 40 percent or more of all BEVs/PHEVs in Australia are now purchased through a novated lease, up from less than two percent in 2022, helping Australians reduce their income tax, reduce their emissions and achieve household budget savings
- NALSPA figures reveal everyday workers living in the outer suburbs, including Werribee (Vic) and Kellyville (NSW), are leading in the adoption of EVs
- VFACTS sales data released last week show PHEVs are continuing to grow rapidly (up 120.5% year-to-date), with NALSPA data showing this is particularly so among employees in rural and regional Australia.
- Extending the FBT exemption on PHEVs beyond 1 April 2025 is crucial to help Australia reach its emissions goals by maintaining the affordability and availability of cleaner alternatives to the vehicles that Australians prefer.
NALSPA CEO, Rohan Martin said: "Owning and operating a car is one of the biggest expenses for families so it's encouraging to see electric vehicles becoming increasingly affordable and available for more everyday Australians. While there is still more work to do to educate motorists about the benefits of low and zero-emissions cars, once Australians are in their EVs, they are unlikely to turn back to petrol or diesel cars.
"Australians living in the outer suburbs and regional areas are embracing EVs, with plug-in hybrids experiencing a notable rise in sales – importantly with the assistance of government policy. PHEVs act as an essential bridge to full electric driving. While BEV model availability and charging infrastructure is improving, plug-in hybrids provide a practical solution for motorists who are concerned about driving range or want a larger car that's not yet available in pure EV form, all while enjoying the benefits of lower running costs and emissions.
"Particularly amidst a cost-of-living crisis, ongoing government support to encourage PHEVs supply and take-up, along with BEVs, is critical to maintain affordability for cleaner versions of the types of vehicles Australians want to drive, while advancing the nation's emissions reduction goals. Without such support, our race to reduce transport emissions will be slowed."
Independent Federal Member for Kooyong and Parliamentary Friends of Electric Vehicles co-chair, Dr Monique Ryan MP said: "I argued back in 2022 that the government needed to do more to encourage manufacturers to bring affordable EVs to Australia. In just two years, electric vehicles have become a very common sight on the streets of Kooyong.
"In this term of Parliament we've made a lot of progress, in the form of fuel efficiency standards and positive changes to the Luxury Car Tax definition of fuel-efficient vehicle, and it's been great to see these measures having an obvious and demonstrable impact on Australia's uptake of electric vehicles.
"The future is very positive, but there's still a lot of policy work to do. I'll continue to advocate for additional supporting infrastructure - we have to improve charging facilities nationally as a matter of urgency. We also need to integrate EVs into all aspects of our transport policy and increase their integration into the energy sector.
"The next signal to the car manufacturing sector should be the opportunity for EVs to be integrated in home energy systems. I hope my next EV will also be my home battery.
"I'd like to thank my colleague Michelle Ananda-Rajah for being my co-driver on this rally, and industry representatives – including the National Automotive Leasing and Salary Packaging Association, the Electric Vehicle Council and the Federal Chamber of Automotive Industries – for their engagement with the work of the Parliamentary Friends of Electric Vehicles group."
Electric Vehicle Council CEO, Samantha Johnson said: "It's clear that early adopters have embraced EVs, and now there is a need to educate and inspire more drivers to discover the superior performance, reduced ownership costs, and environmental benefits provided by electric vehicles of all shapes and sizes."
Federal Chamber of Automotive Industries CEO, Tony Weber said: "As Australian motorists look to reduce their CO2 footprint it is critical that Governments provide balanced policy support to aid the transition to a low emissions future. "Policies, like the Fringe Benefits Tax (FBT) exemption for Battery Electric Vehicles (BEV) and Plug-In Hybrid EVs (PHEV) have played an important role in helping to make these technologies more affordable and accessible to Australians, especially as cost-of-living pressures have increased. "Extending the FBT exemption for PHEVs to align with BEVs will help more Australians to reduce their transport emissions and assist with vehicle operating costs, while critical recharging infrastructure catches up to consumer needs."
