The New South Wales state government’s decision to axe its EV rebate and reintroduce an EV tax has upset the Motor Traders’ Association of New South Wales.
It joins a growing chorus of concern.
“MTA NSW is disappointed with the NSW Government’s decision to scrap rebates for electric vehicles (EVs),” says MTA NSW government relations and advocacy head Collin Jennings.
“The rationale behind the decision is incoherent,” he adds.
“According to the treasurer (Daniel Mookhey), the rebates are criticised for only benefiting the wealthy, but in removing them the only people who will be able to afford an EV are the wealthy,” says Jennings, adding the policy decision will slow down the availability of EVs across the country.
“New South Wales is currently the largest market for vehicles in Australia, but if there is no incentive to switch to electric manufacturers will simply not send cheaper vehicles to our market,” Jennings explains.
“There remains at least a 25% price differential between internal combustion engine (ICE) vehicles and EVs. Government rebates level the playing field and make EVs more accessible.”
Jenning says that as manufacturers work toward introducing more affordable EV models to market, the rebates play a crucial role in helping middle and lower-income earners make the decision to go electric.
“This is particularly important at a time when cost-of-living is a significant issue across the country.
“Affordable EV benefits can significantly impact week-to-week budgets and make a considerable difference to households.
“Scrapping the EV rebate will also contribute to ageing the current fleet, resulting in NSW having older and more polluting vehicles on our roads for longer.”
Jenning says the MTA NSW is “disappointed” the state government did not consult the industry before making the decision.
“If we are to achieve current carbon reduction targets (noting that transport nationally contributes to 20% of all emissions) then we need to look at all avenues to reduce those emissions,” he adds.
“We cannot achieve the target if we reduce the number of EVs on the road.”
Novated Lease Australia chief executive Bevan Guest agrees.
“Novated Lease Australia welcomes any initiatives or investments that promote the uptake of electric vehicles (EVs) and supports EV drivers,” he says.
“We have witnessed a growing adoption of EVs within our own portfolio.
“Currently, our portfolio consists of 52% EVs and in our upcoming vehicle orders, 63% are EVs.
“This signifies a noteworthy 21% surge in EV orders compared to internal combustion engine (ICE) vehicles.
“This growth is particularly significant given that more than half of our current portfolio already consists of EVs.”
Guest says removal of the $3000 NSW Government EV rebate will be seen as a blow to those choosing to acquire their EV through a loan or cash.
“To put it into perspective, over a five-year period, purchasing a Tesla Model 3 RWD outright costs $81,102 while obtaining it through a car loan totals $89,184 (this price includes running costs) while a novated lease allows you to acquire the same car for $68,369.
“Choosing a novated lease for purchasing an EV also offers the opportunity to receive the extensive tax savings in the tens of thousands through the continuing Fringe Benefits Tax (FBT) exemption.,” Guest adds.
“Now, in the absence of a rebate, the advantages of a novated lease over cash payment, when considering the comprehensive cost of EV ownership including insurance, registration, tyres and maintenance, presents an even more compelling financial proposition.”
