Electric vehicles in Australia might just become cheaper thanks to a deal struck between Labor, the Greens, and independent senator David Pocock.
Earlier this week, they have agreed to make changes to the Treasury Laws Amendment (Electric Car Discount) Bill 2022 which includes exempting a range of low emissions vehicles from the fringe benefits tax. The party has also agreed to end tax breaks for plug-in hybrids by April 2025.
Treasurer Jim Chalmers said that “The government has worked in good faith with the crossbench on amendments”.
“These changes are a win for motorists, a win for business and a win for climate action,” Mr. Chalmers added.
Meanwhile, Greens leader Adam Bandt said that the government would prioritize zero-emission vehicles in government fleet procurement.
“The Greens have fast-tracked electric vehicles,” Mr. Bandt said.
“The government fleet will go electric, and when these cars are sold secondhand, it will help bring the cost down of EVs for everyday people,” he added.
EV advocates have expressed their support of this bill.
The passing of the EV discount bill is a great achievement for Australia that shows our country is finally at the wheel and taking this issue seriously,” said Beyhad Jafari of the Electric Vehicle Council.
“Combined with far lower running costs, this move will make driving an electric car the more affordable option for many Australians,” Mr. Jafari added.
A formal vote is expected to take place for the amended bill in the Senate.
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