New South Wales (NSW) may be on track to become the second state in Australia to cut electric vehicle (EV) rebates, following confirmation from Premier Chris Minns that the state government was contemplating removing the move in the upcoming budget.
Mr. Minns’ comments come after the NSW Treasury found no substantial evidence the state’s EV rebates were boosting sales, although the NSW Electric Vehicle Strategy anticipates that EV sales will increase 52 percent by 2030-31.
“The government would consider changes to electric vehicle rebates after advice showed incentives could be raising vehicle prices,” Mr. Minns said.
“We’ve got a subsidy in place that we think is pushing up the costs of EVs, and we’re seeing EVs take up from about two percent to eight percent in the marketplace.”
Currently, NSW residents buying a new EV that costs less than $68,750 can receive a $ 3,000 rebate on the purchase price, and new and used EVs that are under $78,000 are exempt from stamp duty.
If the subsidy is removed, NSW will be following Victoria, the first Australian state to remove its $3,000 EV rebate in June as the state government looks at ways to reduce debt.
Other Australian states offer EV incentives, with Queensland recently doubling its household EV rebate from $3,000 to $6,000.
Western Australia has a $3,500 rebate, and South Australia has a $3,000 rebate.
A taxi driver can also save up to around $4,500 per year by switching from a hybrid petrol car to a battery EV or even more if switching from a traditional petrol vehicle.
For buses, the recent trial in Sydney found the state can achieve reductions in operating and maintenance costs by switching from diesel to electric buses, with a complete fleet transition estimated to reach between $1.1 and $1.9 billion in environmental cost savings.
For Australians, reducing tailpipe emissions from vehicles can deliver significant health benefits for New South Wales, particularly those with respiratory health conditions like asthma, made worse by greenhouse gas emissions.
Currently, the transport sector is a growing source of greenhouse gas emissions.
In 2019, the transport was responsible for 28 million tonnes of carbon dioxide equivalent emissions, making up 20 percent of NSW emissions, with almost 50 percent of those from passenger vehicles.
Transport emissions are set to become the primary source of emissions by 2035, overtaking electricity and stationary energy sources.
State of Electric Vehicles
EV sales in Australia have increased 120 percent compared to 2022, with 8.4 percent of all new cars sold in 2023 being EVs, according to a recent report (pdf) by the Electric Vehicle Council (EVC).While this trend is positive, the report stated that most EV sales are made of only three models: Tesla Model Y, Tesla Model 3, and BYD Atto 3, representing over 68 percent of the EV market.
Ninety-one electric car, van and ute models are now available in Australia, but most are supplied in small volumes, according to the EVC report.
Less volume is a consequence of Australia needing a New Vehicle Efficiency Standard to ensure car manufacturers increase the supply of EVs to the country.
The EVC called on the Government to implement a globally-competitive New Vehicle Efficiency Standard before the end of 2023.
“This is not only necessary for supporting our nation’s emission reduction targets but important for securing a wide range of affordable EVs of all shapes and sizes to enable Australian households and businesses to slash their fuel bills,” the report said.
“Although Australia has a lot of work to do to catch up with leading EV countries, every state, territory, and federal government is now actively supporting the uptake of zero-emission technology. Early 2023 also saw the Australian Government release its first national EV strategy, which is a step in the right direction—but more needs to be done.”
EVC said Australia has long-term opportunities presented by the transition to EVs by supporting the creation of thousands of jobs, including developing Australian critical minerals, batteries, components, chargers, and vehicles.
The report said to achieve Australian climate targets, more than 50 percent of all new cars sold in 2030 must be EVs, meaning Australia should aim for about 1 million EVs on roads by the end of 2027.
EVC said Australia continues to fall behind the global average and is significantly behind many EU markets, the UK and China.
“Even Thailand, another right-hand drive vehicle market—is now seeing a rapid expansion in the adoption of EVs thanks to supportive EV policy introduced by the Thai government,” the report said.
The Epoch Times reached out to Mr. Minns and EVC for comment.
