The Commonwealth Parliamentary Friends of Electric Vehicles has been briefed on the challenges and opportunities associated with the evolving EV landscape in Australia, including the need for continued policy support to encourage further the supply and take-up of 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 with the support of the Electric Vehicle Council and the Federal Chamber of Automotive Industries.
The event showcased some of the latest and most affordable battery EV (BEV) and PHEV models in Australia.
NALSPA highlighted that the increasing variety of models and 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 commencing 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 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 more significant vehicle types are barriers to broader EV adoption, evidenced by their slowing take-up rate. However, PHEVs are emerging as a practical transitional solution with government policy support.
- NALSPA estimates about 40% or more of all BEVs/PHEVs in Australia are now purchased through a novated lease, up from less than two per cent 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 continue to increase (up 120.5% year-to-date). NALSPA data shows this is particularly so among employees in rural and regional Australia.
- Extending the FBT exemption on PHEVs beyond April 1, 2025, is crucial to help Australia reach its emissions goals by maintaining the affordability and availability of cleaner alternatives to the vehicles Australians prefer.
“Owning and operating a car is one of the most significant 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,” NALSPA chief executive Rohan Martin says.
“Australians living in the outer suburbs and regional areas are embracing EVs, with plug-in hybrids experiencing a notable rise in sales – notably with the assistance of government policy. PHEVs act as an essential bridge to total electric driving. While BEV model availability and charging infrastructure are improving, plug-in hybrids provide a practical solution for motorists concerned about driving range or want a larger car that’s not yet available in pure EV form 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 maintaining 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,” he says
“I argued in 2022 that the government needed more to encourage manufacturers to bring affordable EVs to Australia. In just two years, electric vehicles have become ubiquitous on the streets of Kooyong,” says Independent Federal Member for Kooyong and Parliamentary Friends of Electric Vehicles co-chair Dr Monique Ryan MP.
“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 a fuel-efficient vehicle, and it’s been great to see these measures having an evident 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 advocating for additional supporting infrastructure – we urgently must improve charging facilities nationally. 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 into 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,” she says.
“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 of electric vehicles of all shapes and sizes,” Electric Vehicle Council CEO Samantha Johnson says.
“As Australian motorists look to reduce their CO2 footprint, Governments must provide balanced policy support to aid the transition to a low emissions future,” Federal Chamber of Automotive Industries chief executive Tony Weber says.
“Policies, like the Fringe Benefits Tax (FBT) exemption for Battery Electric Vehicles (BEV) and Plug-In Hybrid EVs (PHEV) have played an essential role in helping to make these technologies more affordable and accessible to Australians, significantly 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,” he says.
