What the election result means for EV buyers

Election night means a raft of big questions, but for now let’s focus on what the election result means for EV buyers.

Labor has vowed to at last implement a nationwide EV policy, with a cohesive program that would offer equal incentives for buyers of electric vehicles, no matter their state or territory.

The policy – announced before Saturday’s polling day – is called “Labor’s Electric Car Discount”, and includes an exemption from import tariffs (a five per cent tax on some electric cars), as well as nixing fringe benefits tax for EVs that are provided through a workplace for private use.

READ MORE: How the cross bench could impact EV policy

There is, though, a price ceiling, which Labor has pegged to the luxury car tax threshold for fuel efficient vehicles, which is currently $77,565.

It means the discounts would apply to variants for most popular EVs in Australia, including the Kia EV6, the Hyundai Ioniq 5, the Tesla Model 3 (and possibly the Model Y) and the Polestar 2.

While the policy doesn’t include any rebates, it is thought Labor’s national framework would tie in with the individual policies of each state and territory.

Labor – and the Electric Vehicle Council – modelling suggests the removal of the import tariff would shave more than $2000 off the cost of a $50,000 EV. If that same vehicle was then purchased by a business and provided to a company, the party’s fringe benefits tax exemption will save a further $9000 per year, whether by the company or the employee.

After that, things get a little more vague, with Labor promising to “work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy”.

Details are few and far between for now, but the party has nominated furthering EV sales and infrastructure, a focus on Australian manufacturing of batteries (and possibly even vehicles themselves), and how to offset the reduction in the fuel excise paid by drivers.

The policy would commence from July this year, and would be in place for at least three years.