Cost of buying a new electric vehicle to be slashed under Labor

A drastic plan to turn Australians away from petrol-powered cars would see the cost of electric vehicles slashed by thousands of dollars.

The cost of buying a new electric vehicle would be slashed by thousands of dollars under a Labor plan.

The cost of buying a new electric vehicle would be slashed by thousands of dollars under a Labor plan to accelerate the transition away from petrol-powered cars.

Anthony Albanese said that if elected, a Labor government would scrap import tariffs on non-luxury electric vehicles, saving $2000 on a $50,000 vehicle such as the Nissan Leaf.

Fringe benefits taxes would also be waived on electric cars provided to workers by their employers for their private use, saving up to another $9000 on a $50,000 car.

There were 6900 electric cars sold in Australia last year, making up just 0.7 per cent of total new car sales according to the Electric Vehicle Council. This compared to 11 per cent in the UK and Europe.

The Opposition Leader said his plan — to cost $200m over three years — would “ensure that more Australians who want electric vehicles can afford them”, with just five models currently available under $60,000.

“A majority of Australians say they would consider buying an electric model as their next car, but because of ­scaremongering and the policy vacuum under the Morrison government, electric vehicles remain unaffordable for most Australians,” Mr Albanese said.

Under Labor’s plan, the tax discounts would be available for electric vehicles worth up to $77,565.

He will also announce a separate $200m investment to install 400 community batteries across the country, tapping into Australia’s world-leading rooftop solar rollout to store energy for as many as 100,000 households.

If elected, Mr Albanese said Labor would examine the feasibility of replacing the commonwealth car fleet with electric vehicles, and develop a national electric vehicle strategy to consider how the commonwealth could support recharging stations and encourage the domestic manufacturing of electric cars or specific components.

At the last election, Scott Morrison attacked Labor’s target for electric vehicles to make up half of all new car sales by 2030, arguing that then leader Bill Shorten wanted to “end the weekend”.

The government is now finalising its own strategy but is refusing to subsidise the cost of electric vehicles, instead seeking to encourage businesses to add electric vehicles to their fleets by helping with the cost of charging infrastructure.

Advocates of the shift to electric cars have warned new taxes based on distance travelled — being pursued by governments in Victoria, South Australia and NSW — could be a handbrake on the wider take-up of the new technology.

Under Labor’s plan, the tax discounts would be available for electric vehicles worth up to $77,565, in an effort to incentivise manufacturers to bring in affordable models rather than high-end options.