Is this stopping you from buying an electric vehicle?
Lack of reliable charging stations and inconsistent policies are keeping more Australians from buying EVs and, the finance industry says, all tiers of government need to speed up the rollout of chargers.
EVs accounted for about 10 per cent of vehicles bought in Australia last year, but sales have started to slow. The Australian Energy Market Operator (AEMO) in August cut its expectations for EV take-up by a third over the next decade.
The finance industry says there is national leadership required to bring the country in line, giving Australians the confidence to purchase EVs. Credit: Bloomberg
Diane Tate, the chief executive of the Australian Finance Industry Association, said buyers were staying away due to the lack of uniform charging standards and inconsistent incentives and fees. She cited Deloitte research, commissioned by AFIA, that examined the roadblocks to Australians purchasing EVs and the role of the finance industry in the transition to sustainable transport.
“I just got back from Norway, and they have transitioned really fast to EV and hybrid – there are very few petrol cars on the road,” she said.
“A petrol station will have, say, around three petrol bowsers and 20 charging stations, and all the charging stations are interoperable. So there’s no, ‘Oh my god, is this going to work for my car? What is my car? What does it need?’ It’s available and reliable and easy.
Diane Tate, CEO of the Australian Finance Industry Association.Credit:
And that’s the three things we need from charging infrastructure in Australia.”
Tate said her members financed about $6.2 billion in loans for EVs and hybrids last year – up from $2.5 billion in 2023. And those numbers could be higher if national leadership on policy and rollout of infrastructure gave Australians the confidence to buy EVs.
Policies targeted towards EVs vary substantially in Australia. The Australian Capital Territory exempts EV buyers from stamp duty and has free registration. The NSW exemption on eligible EVs expired in December 2023.
In Victoria, there is a $100 discount on the registration fee. Western Australia rebates $3500 on vehicles valued at less than $70,000.
Tate said: “What we need to do is make sure people understand what their financing options are. How do I get into this EV or hybrid market? Am I going to buy or lease or even subscribe? How am I going to manage my charging and servicing needs for the car?
“Transport makes up … the third-largest part of our economy in terms of our emissions, so if we can take a good chunk and solve transport, we’re going to be doing a lot to make sure we meet our [net zero by 2050] targets.”
The federal government released Australia’s first national electric vehicle strategy two years ago, including a $500 million investment in installing fast chargers along key highways,. Tate says more work is required to align the three tiers of government.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.