Newly minted treasurer Jim Chalmers must have one of the hardest jobs in politics steering Australia through a period of economic difficulty with global uncertainty and inflation that hasn’t been seen in Australia in decades.
His recent budget was largely an exercise in dampening expectations and cooling the economy, so how did motorists fare?
While there wasn’t much in it for ordinary motorists, the government’s aim to reduce carbon emissions was clear to see with a number of measures to encourage EV uptake.
The first measure among them was cutting the 5% import tariff on battery electric vehicles. This should cut the price of a $50,000 vehicle by $2500, according to the government.
Then the government went further by cutting the fringe benefits tax on them as well. This should amount to savings of $9000 per annum for employers, while employees on salary sacrifice agreements can look forward to savings of $4700 on a $50,000 electric vehicle.
One welcome initiative is the government’s pledge that 75% of its fleet will be EV’s by 2025. This will greatly boost the supply of used EV’s on the market in years to come, pushing down used EV prices.
EV drivers will benefit from the rollout of 117 charging stations as part of the $500 million “Driving The Nation Fund”. The fund will also pay for hydrogen refuelling stations along key freight routes.
However, there’s still no action on introducing robust fuel efficiency standards that would compel vehicle makers to introduce more fuel-efficient vehicles to the Australian market, though the government is considering the initiative and consulting stakeholders through its National Electric Vehicle Strategy.
More EV’s on the road means more demand for servicing them, and the government’s National Reconstruction Fund could see grants of up to $113.6 million going towards battery skills such as repair recycling or manufacturing EV batteries.
It’s a welcome initiative at a time when the vehicle industry is struggling to find skilled workers in the face of rising demand for electric vehicles.
Western Australia will be the recipient of a $125 million investment in electric buses and the charging stations for them.
One less obvious incentive for motorists to take up EV’s in the budget is the government’s community batteries for household solar program.
This $102.2 million investment aims to help 25,000 householders obtain more affordable household solar.
Solar panels on household roofs are quite an incentive for buying an EV, with their promise of “fuelling” your vehicle for free.
But if there’s still one big factor holding back the adoption of EV’s in Australia, its price. EV’s are still prohibitively expensive for many motorists, though the good news is those prices are now coming down, and lowering the total cost of ownership of an EV.
We’re about to see an influx of cheaper EV’s from China, from manufacturers such as BYD and MG priced at around the $40,000 mark that will put downward pressure on prices in the rest of the EV market.
The MG4 in particular is getting some very favourable reviews overseas.
Meanwhile, if you’re in the market for a brand-new electric vehicle then you owe it to yourself to check out Fleetcare’s current novated lease offer on Australia’s favourite EV, the Tesla Model 3.
It offers rapid acceleration long range and fast charging and you’ll enjoy savings off the new vehicle purchase price.
For further details on novating an electric vehicle, contact Fleetcare today on 134 333.