Save
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed.
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed.
Following South Australia’s November announcement of a planned new policy, dubbed the ‘worst EV policy’ in the world, Victoria too has jumped on the bandwagon of seemingly dishing out punishments to drivers of electric vehicles.
Under Victoria’s new laws, clean-vehicle owners must keep a record of odometer readings to provide to authorities at the end of each year. Once they’ve done this, they can expect a possibly hefty bill – charged at 2.5 cents a kilometre – adding at least $3,000 to the cost of owning an EV over its lifetime.
Although the South Australian government has yet to formally commit to the new tax, it is widely predicted the state government will follow Victoria’s lead.
Ahead of the new tax, The Australia Institute has quizzed about 600 people in South Australia to gauge public opinion on EVs. They found that almost 70 per cent will be less likely to purchase an electrical vehicle if the new user tax is enacted.
Responding to the figures, AI’s director for SA Noah Shultz-Byard said new user charges will “pull the handbrake” on consumer enthusiasm for electric cars.
“Our research shows that the vast majority want more EVs on the road, not less, because they are considered to be good for the climate, health and the environment,” he said.
According to the findings, around 43 per cent of South Australian motorists said they were considering switching to an EV, while three in four agreed that subsidies for the industry make sense.
Mr Shultz-Byard believes the move to introduce an EV tax goes against much of South Australia’s current climate policies.
“South Australia is leading the nation with its adoption of wind and solar power, but those efforts will be badly undermined if the government moves ahead with its EV tax,” he said.
“Tailpipe emissions in South Australia remain high and, in light of the IPCC’s latest report on the state of the climate, we should be doing all we can to switch to zero-emission vehicles.”
But consumers aren’t alone in opposing the plan. At the time the state first spoke of its new tax plans, Hyundai, Volkswagen, Uber and the Electric Vehicles Council inked a letter to the government describing the tax as the “worst electric vehicle policy in the world”.
South Australia had also planned to introduce a road user charge this year but has put it off until July 2022, partly to gauge the impact of the Victorian legislation.
RELATED ARTICLES
About the author
About the author
Tax saving
The downsizer dividend: How targeted tax levers could unlock housing supply in Australia
A call by Raine & Horne to incentivise seniors to move to smaller homes has kicked off a wider policy conversation that reaches well beyond real estate. If designed well, a targeted package could ...Read more
Tax saving
Raine & Horne's bold move could unlock housing supply but what are the hidden risks
Raine & Horne’s call for targeted tax incentives to encourage empty nesters to ‘rightsize’ isn’t just another sector wish list; it’s a potential lever to free up family homes, ease rental ...Read more
Tax saving
From annual check-ups to always‑on: how modern portfolio reviews unlock after‑tax alpha
The era of once‑a‑year portfolio check‑ins is over. Continuous, tech‑enabled reviews now drive returns through tax efficiency, risk control and behavioural discipline—especially in a high‑rate ...Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
The downsizer dividend: How targeted tax levers could unlock housing supply in Australia
A call by Raine & Horne to incentivise seniors to move to smaller homes has kicked off a wider policy conversation that reaches well beyond real estate. If designed well, a targeted package could ...Read more
Tax saving
Raine & Horne's bold move could unlock housing supply but what are the hidden risks
Raine & Horne’s call for targeted tax incentives to encourage empty nesters to ‘rightsize’ isn’t just another sector wish list; it’s a potential lever to free up family homes, ease rental ...Read more
Tax saving
From annual check-ups to always‑on: how modern portfolio reviews unlock after‑tax alpha
The era of once‑a‑year portfolio check‑ins is over. Continuous, tech‑enabled reviews now drive returns through tax efficiency, risk control and behavioural discipline—especially in a high‑rate ...Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.