Police, nurses and firefighters to be enticed to buy electric vehicles
By Bianca Hall
Essential workers and low and middle-income earners will be enticed with government-subsidised cheaper loans to take up electric vehicles, including second-hand EVs.
The deal could save workers up to $8000 on a $40,000 seven-year EV car loan – on top of petrol savings – and is limited to essential workers like nurses and firefighters and people earning less than $100,000 a year.
Electric vehicles are set to become cheaper for essential workers and low-to medium-income earners.Credit: Bloomberg
The Clean Energy Finance Corporation will contribute $150 million to the scheme, which is being run in partnership with the Commonwealth Bank of Australia.
“The latest research shows that one in three Australians is considering buying an EV in the next five years, but price remains a key barrier,” said CEFC chief executive Ian Learmonth ahead of the announcement on Thursday.
“Discounted finance can lower these barriers and increase access and availability to low emissions transport for more Australians.”
Industry figures have welcomed news the cheaper loans would be available for second-hand electric vehicles as well as new vehicles, saying strengthening the residual value of EVs would help build confidence in low-emissions technology.
“MTAA commends the government for its ongoing efforts to make low-emission transport more accessible to Australians,” said Matt Hobbs, chief executive of the Motor Trades Association of Australia.
“This initiative will play a vital role in helping more Australians make the switch to EVs, which is essential for reducing emissions.”
Electric vehicles this year represent 9.5 per cent of light vehicle sales in Australia, according to the Electric Vehicle Council, a 150 per cent increase in market share compared with 2022.
Shalik Ram Kharel, a mental health nurse at Liverpool Hospital in Sydney’s west, bought an electric vehicle two years ago, charging it twice a week at home.
“[The electricity company] will charge eight cents per kilowatt to charge the car – basically, it will cost around $6.50 to fully charge the car,” he said. “If I charge fully my car, that will give me around 400 kilometres’ drive.”
Shalik Kharel says he’s saving more than $80 a week in petrol costs alone after buying an electric vehicle.Credit: Nirvana Imagery
His previous petrol car cost about $100 a week in fuel, while his electric vehicle costs about $13 to charge.
Electric vehicles have become a flashpoint in the energy wars being fought between the federal government and the opposition.
Announcing the costings of his nuclear energy plan last week, Liberal leader Peter Dutton claimed, “If you’ve got solar panels on your house at home, and you’re charging up your car during the day, you can’t store energy into your battery”.
That statement was swiftly rejected by people doing just that, who pointed out that the average solar system in Australia is eight kilowatts – more than enough to charge a vehicle, store energy and keep lights on.
Under the government’s scheme, people would save between 1-5 per cent on EV-specific loans for new and used EVs worth up to $55,000, as well as home EV charging equipment.
“Discounted loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year,” said Energy Minister Chris Bowen.
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