Prime opportunity to incentivise change

The State Government has a once-in-a-generation opportunity to demonstrate national leadership in the electrification of Australia’s transport.

The MTA has called on the government to reintroduce - in the upcoming State Budget - incentives for all zero and low emission vehicles (ZLEVs), which includes battery electric, hybrid and plug-in hybrid vehicles.

“The Motor Trade Association would be concerned if there were a lack of financial policies to support EV affordability,” said Darrell Jacobs, CEO of the MTA SA/NT.

“These concessions should likewise be extended beyond electric vehicles to hybrids and plug-in hybrids. A typical South Australian family might not be able to afford an electric vehicle but they might be more willing to try a hybrid or plug-in hybrid model which will still emit fewer emissions than a petrol or diesel car.

“Hybrids and plug-in hybrids can be more affordable, reduce range anxiety and provide an entry point for motorists who may not have previously considered an electric vehicle.

“Transport is the highest emitting sector in South Australia. With the right incentives, we can help decarbonise it.”

He added: “The MTA will continue to call for the reintroduction of incentives for electric vehicles, as well as expanding the program to all zero and low emission vehicles, regardless of technology.

“With the Federal Government’s proposed fuel efficiency standard looming large, we don’t want to see ordinary South Australians punished if they cannot afford an electric vehicle.”

Affordability

With a cost of living crisis underway in Australia, and an emerging fuel efficiency standard, now more than ever, Governments must support the uptake of ZLEVs beyond targets. The scrapping of incentives for these new vehicles in South Australia and interstate is a misstep.

“In taking a leadership role, SA should reintroduce incentives to include low emission vehicles,” said Mr Jacobs.

“As a former union official and as the current Labor Premier, Peter Malinauskas understands cost of living pressures for the average wage earner.

“The $3,000 subsidy and threeyear registration exemption for new electric vehicles and hydrogen fuel cell vehicles is a wonderful initiative. But its partial removal is a step in the wrong direction.”

Affordability has proven to be a major obstacle, pointing out that the cheapest EV currently available is still more expensive than the average Australian new car price. Motorists should be encouraged to adopt fuel efficient technologies.

“We know if affordability is left unaddressed, motorists will simply not charge our transition to electric vehicles,” said Mr Jacobs.

“So, we should not be taking away incentives. If anything we should be expanding incentives to encourage EV ownership and this should include all zero and low emissions vehicles.”