In a win for electric vehicles (EVs) and the planet, the Senate and the federal government have agreed to exempt EVs from import tariffs and fringe benefits tax (FBT).
The removal of FBT for electric vehicles is expected to have the biggest impact. A $50,000 car with a salary sacrifice arrangement could save you up to $4700 a year.
The import tariff removal won’t move the needle in the short term as we already have free trade agreements in place with China, Japan and Korea – where we get most of our EVs. German EVs however are expected to become a little cheaper.
Electric cars are really starting to make some headway in Australia too.
- Today, electric vehicles are less than 5 per cent of the market, but that is an increase of 65 per cent on last year.
- The ACT leads the sales, with 9.5 per cent of the market, followed by NSW (3.7 per cent), Victoria (3.4 per cent), Queensland (3.3 per cent), Western Australia (2.8 per cent), South Australia (2.3 per cent) and the Northern Territory (0.8 per cent).
- To put that into context, we fall way short of the global EV sales. In Norway, eight out of 10 new cars sold are electric.
10 EV facts you need to know
EVs are on average 82 per cent cheaper to charge than petrol cars are to fuel for the same distance covered.
Read: What do all those electric vehicle terms mean?
EVs are cleaner to operate than petrol cars – 39 per cent to 87 per cent cleaner if charged from the grid or 100 per cent cleaner if charged from solar panels.
EVs have more than enough range (average of 430kms) to cover the average daily distance driven (36kms) in Australia.
Known as bidirectional charging, EVs can be used as mobile battery banks to power appliances. One day they’ll be able to power your home.
EVs won’t ruin the weekend either! Electric cars can tow, which means you can still go off-road with trailers and caravans.
Read: Simple way to save money when you’re behind the wheel
There are 3000 public EV charging points in Australia, representing one for every 11 electric vehicle registered. That number is expected to lift enormously in coming years.
There are 41 EV models and 95 variants available in Australia.
The cheapest EV available for sale is the MG ZS EV priced at $44,900 drive away. A raft of cheaper EV models is set to go on sale in 2023.
The average wait time for an EV is six to nine months. Long wait times apply to all new vehicles, regardless of whether they’re petrol, diesel or electric.
Uptake of EVs is still low, comprising only 3.4 per cent of new car sales to September.
Read: Is the campaign to get you driving an electric vehicle a PR con?
The bottom line
EVs are well and truly here.
They currently cost more than fossil fuel vehicles, but that will change in the near future.
And with some banks phasing out loans for fossil fuel cars in favour of EVs and the ban on selling petrol and diesel vehicles coming – in the ACT it’s 2035 – it will be sooner rather than later.
This article originally appeared on Expert Analysis and is republished with permission. You can read the original article here.
Do you have plans to buy an electric vehicle? Will the reduction in prices tip you over? What concerns do you have? Why not share them in the comments section below?