The Electric Vehicle Council (EVC) is calling for stronger national policies to accelerate Australia’s transition to electric vehicles, including GST exemptions and a future ban on new petrol and diesel car registrations.
The recommendation comes as part of the EVC’s State of EVs 2025 report which urges all levels of government to expand measures that make EVs more affordable, including GST exemptions, energy bill credits, and ongoing support for the Electric Car Discount.
“We’re calling on the government to set EV targets and a date for a ban on petrol and diesel registrations, like the UK and France,” said EVC Chief Executive Julie Delvecchio.
“We’re also calling for more incentives to get Australians behind the wheel of electric cars and trucks, including GST exemptions and energy bill credits.”
The council argues that removing up-front costs through tax exemptions and credits would help bridge the affordability gap, particularly for fleet and commercial buyers.
EV Uptake Hits Record Highs
Australians bought 72,758 electric vehicles in the first half of 2025 (up 24 per cent from last year) with EVs now making up 12 per cent of new car sales and over 410,000 on the road.
“Australia is making progress in the transition to electric cars,” Ms Delvecchio said. “But we need to shift gears from steady to more rapid growth to meet emissions reduction targets. Transport will become Australia’s largest-emitting sector within years, and that demands strong, coordinated action from all governments and industry.”
Steady Gains but a Steep Road Ahead
To reach 1 million EVs by 2028, the EVC estimates that Australia must sell 145,000 EVs in 2025, 240,000 in 2026, and 320,000 in 2027.
While the New Vehicle Efficiency Standard has already boosted EV model availability, the report notes that several states have recently wound back EV incentives, a move the EVC warns could stall progress.
“No country has reached mass EV adoption without sustained government support,” Ms Delvecchio said. “Withdrawing incentives now risks stalling the momentum we desperately need.”
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