Buying an electric car may become easier for Victorians, with the state government announcing a new grant of $ 3,000.
This grant will apply to Zero Emission Vehicles (ZEV) and will be available for up to 20,000 vehicles from May 2, 2021.
According to the Andrews government in Victoria, the package is part of a $ 100 million pledge to see fully electric or hydrogen cars account for half of all new vehicle sales by 2030.
Victorian Energy, Environment and Climate Change Minister Lily D’Ambrosio said the state’s transportation sector contributes significantly to emissions.
“This reform package makes cars the vehicle for change, by bringing more zero-emission vehicles onto our roads,” she said.
Treasurer Tim Pallas said the investments “will encourage more drivers to consider purchasing a zero-emission vehicle – and ensure Victoria leads the country in zero-emission vehicle consumption.”
See also: “ Discount on electric cars ” on the ballot in the next federal election
In the market for an electric car? The table below shows auto loans with some of the lowest fixed interest rates in the market for low emission vehicles.
Other government subsidies for electric cars
Currently, Australia mainly has state incentives to encourage purchases of electric vehicles (EVs), with little supply at the federal level.
For aspiring electric and hybrid car owners, the following incentives are available in addition to this new $ 3,000 grant:
Confusion over the Victorian government’s bilateral approach to EV
The announcement of a $ 3,000 break for car buyers, as well as a $ 19 million investment in charging infrastructure, has been welcomed by some industry groups.
The Federal Chamber of Automotive Industries (FCAI), for example, provided support, saying it had worked closely with the government to increase adoption of electric vehicles.
“The CFAI thanks the Government of Victoria for its consultation on this issue and we look forward to continuing to develop more policies through the Government of Victoria Expert Advisory Group to ensure that long-term strategies are achievable. , practical and innovative are in place to respond in the long term. , shared objectives for the CO2 emissions reduction, ”said Tony Weber, Chief Executive Officer of the FCAI.
“The CFAI has always advocated for a national approach to these issues which, ideally, would be led by the federal government to prevent individual state governments from introducing their own standards and incentive programs in support of FTAs.
However, Mr Weber also noted that this new package called into question the Victorian government’s new electric vehicle road charge, the ‘electric vehicle tax’ dubbed by 25 different organizations as the ‘worst electric vehicle policy in the world. world “(see below).
“Road user pricing decisions should not be based on specific technologies and in particular those that are in their infancy in the Australian market,” said Weber.
“An effective road user pricing system can address all vehicle users regardless of what type of vehicle they drive, how often it is driven and the purpose of the trip.
“The CFAI will be keen to work with the Government of Victoria and other governments to explore the benefits of large-scale vehicle tax and tax reform.”
What is the Victorian “Electric Vehicle Tax”
Fees for using the Victoria Highway are expected to begin on July 1, 2021, assuming they pass through Parliament in early May.
Essentially, these fees would include a tax of 2.5 cents per kilometer for fully electric vehicles and 2 cents per kilometer for plug-in hybrid vehicles.
Vic Roads says that would mean the average electric vehicle owner could expect to pay an additional $ 330 each year in road costs, and according to The Australia Institute, it would be the first tax in the world to directly pay off the purchase of an electric vehicle more difficult.
In an open letter created by The Australia Institute, 25 different organizations called the proposal “the world’s worst EV policy”, including:
- Car manufacturers like Hyundai and Volkswagen
- Climate advocates like the Clean Energy Council, Smart Energy Council, Australian Conservation Foundation and more
- Automotive bodies such as the Electric Vehicle Council and the Transport Alliance
- Other companies like Uber and Charge Fox
“No other jurisdiction has introduced such a targeted levy on the cleanest vehicles on the road without significant incentives to balance it,” the letter said.
“Most industrialized countries prioritize incentives for electric vehicles to benefit from cleaner air and new jobs in a growing industry.
“This new tax means that global automakers are much less likely to send Victorians their best, most affordable and affordable zero-emission vehicles.”
Most Australians seem to agree with other incentives for EVs, regardless of their big party affiliation.
However, the Victoria government has said its new $ 3,000 electric vehicle subsidy is made possible by expected revenue from the road charge, saying it “will be introduced at a fraction of the vehicle taxes and fees to be paid. engine that other vehicle owners pay, and will guarantee all roads. users contribute to the maintenance of our roads. ”
Related: Affordable Electric Cars in Australia
Photo of Science in HD on Unsplash
The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes retail products from at least the Big Four banks, the top 10 customer-owned institutions and Australia’s largest non-banks:
Products from some vendors may not be available in all states.
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*the Comparison rate is based on a loan of $ 30,000 over 5 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees, or other loan amounts may result in a different comparison rate.