Low-Interest EV Loans Offered to Workers Earning Less Than $100,000 a Year

The initiative offers up to 5 percent lower interest rates, helping workers save thousands on new and used electric cars.

An image of the Chinese EV brand, Zeekr, recently launched in Australia taken in Brisbane on Nov. 30. 2024. Daniel Y. Teng/The Epoch Times

The Albanese government has unveiled a $150 million (US$93 million) initiative through the Clean Energy Finance Corporation (CEFC) to promote the adoption of electric vehicles (EVs).

Partnering with the Commonwealth Bank, low-interest loans are now available for workers earning under $100,000 annually and essential workers such as teachers, police officers, firefighters, and nurses.

The loans, offering rates up to 5 percentage points lower than standard rates, could save EV buyers over $8,000 on a $40,000 loan with a seven-year term.

The scheme covers new and used EVs worth up to $55,000 and home EV charging equipment, aiming to remove financial barriers to ownership.

Climate Change and Energy Minister Chris Bowen highlighted the initiative’s potential to cut costs for Australians while supporting cleaner energy solutions.

“Discounted loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year,” Bowen stated.

This measure complements other government efforts, including eliminating the 5 percent import tariff on EVs, scrapping Fringe Benefits Tax for leased EVs, and establishing a nationwide charging network.

Milestone for EV Adoption in Australia

Electric vehicle sales in Australia exceeded 100,000 units in 2024, according to the Electric Vehicle Council’s (EVC) State of Electric Vehicles report released on Dec. 16.

By September, 85,000 battery-powered cars were sold, comprising 9.5 percent of all new vehicle sales. EV purchases increased by 13 percent from 2023, and model availability grew by 50 percent.

The growth pace slowed compared to the record-breaking surge in 2023.

Cuts to purchase subsidies in states like New South Wales, Victoria, and Queensland have been a setback, with the EVC urging financial incentives remain until EVs make up 30 percent of national sales.

Challenges to Achieving EV Goals

The EVC stressed the importance of government and industry collaboration to meet Australia’s net-zero emissions target.

To meet climate targets, the report set a 2030 goal for EVs being 50 percent of all car sales and an interim milestone of one million EVs on the road by 2027.

However, the early removal of subsidies has made achieving these goals more difficult.

Jake Whitehead, EVC’s chief scientist, pointed out that EV adoption heavily depends on consistent policies, affordability, and infrastructure development.

Future Outlook Remains Optimistic

Despite challenges, the outlook is optimistic. EVs now represent nearly 10 percent of new car sales, a 150 percent market share increase since 2022.

Projections suggest EVs could comprise up to 19 percent of new vehicle sales by 2026 with continued policy and infrastructure support.

“With the right investments and policies, EV adoption in Australia is poised to continue its upward trend,” Whitehead said, noting the potential for a sustainable transportation future.

Aman Gaur, EVC’s head of policy, hailed 2024 as a milestone year.

“Reaching 100,000 EV sales is a clear signal that Australians want modern, sustainable cars that are fun to drive,” Gaur said.