Victoria’s Labor Government, the focus of some frustration over its plans to introduce a road user tax for electric vehicles (EV), has announced that it will introduce a $3,000 subsidy for new Zero Emissions Vehicles (ZEV) valued at up to $69,000 as a part of a net zero emissions plan.

At the beginning of May, the government revealed plans for a $100 million investment package that will include the subsidy for more than 20,000 new electric vehicles. The plan also aims at a 2030 target for half of all new car sales to be zero emission; will deliver investment in charging infrastructure across the state; will look to assist the uptake of ZEVs in the commercial sector; and add ZEVs to the government’s fleet of vehicles, with 400 to be added in the next two years.

An expert advisory panel will be established to advise the Government on policies, programs and infrastructure required to meet the 50 per cent ZEV target by 2030.

However, the proposed road user tax plan for EVs remains, with the government statement saying: ‘The $100 million package has been made possible by a zero and low-emissions road user charge that will be introduced at a fraction of the motor vehicle-related taxes and charges other vehicle owners pay, and ensures all road users contribute to the upkeep of our roads.’

The road user tax is proposed to be set at 2.5 cent/km charge for electric and other zero-emission vehicles, including hydrogen vehicles, and a 2 cent/km for plug-in hybrid-electric vehicles.

The tax aside, Victoria’s EV plan was met with approval by many organisations, including the Electric Vehicle Council (EVC).

“This is exactly the kind of momentum we need in Australia if we want to join the rest of the world in embracing the transition to electric vehicles,” said EVC chief executive Behyad Jafari.

“We know from surveys that Australians are eager to get behind the wheel of an electric vehicle, they just need to know their governments will back that decision. Policies like this tell Australians that buying an electric vehicle is a choice they can make with confidence.

“Only 0.1 per cent of Victorian cars are currently electric. The subsidies announced could help drive that figure up sharply and put a huge dent in Victoria’s carbon emissions.”

The Federal Chamber of Automotive Industries (FCAI), while welcoming the move by the Victorian government, noted that a national response was important to consider.

“The FCAI has consistently advocated for a national approach to these issues that ideally would be Federally-led to avoid the prospect of individual State Governments introducing their own standards and incentive programs in support of ZLEVs,” said FCAI Chief Executive Tony Weber in a statement.

“Consistency is the critical element for Australian customers. If other States introduce their own programs, they must align. Otherwise, the result will be another disjointed and chaotic system like the introduction of different rail gauges across the country.”

While Victoria’s move is a start, and will, hopefully, encourage the uptake of EVs, the state, and the country, is still way behind other advanced nations in EV numbers. In 2020, there were 6,900 electric cars sold in Australia. According to the Society of Motor Manufacturers and Traders in the UK, 108,205 battery-electric vehicles were sold there in 2020. We have a way to go.

Source: Motor Trader e-Magazine (May 2021) 

18 May 2021