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Disappearing PHEV incentives are no April Fool’s joke

The vehicle industry is evolving rapidly and one of the biggest shifts we’re seeing right now is the growing enthusiasm for hybrid vehicles. Hybrids are hot, with sales increasing by a whopping 80% in the first 11 months of 2024 compared to the previous year, accounting for 14% of the overall market.

Australian buyers, and fleet buyers in particular, have been drawn to hybrids and plug-in hybrids (PHEVs) thanks to their greater fuel efficiency compared to traditional petrol or diesel vehicles. That greater efficiency adds up to really significant cost savings over time.

But hybrids also produce fewer emissions than their petrol or diesel equivalents at a time when reducing carbon emissions has never been more crucial. For fleet buyers committed to sustainability and corporate social responsibility, investing in hybrid vehicles is a tangible way to contribute to environmental protection. Additionally, as regulatory pressures to reduce emissions increase, having a hybrid fleet can help companies stay ahead of compliance requirements.

Government incentives

And there’s yet another reason hybrids are popular, and that’s the government incentives encouraging their adoption, which includes tax rebates, grants, and reduced registration fees. The Federal Government offers an Electric Car Discount which could allow all your car’s payments through a novated lease come out of your income before it’s taxed (though conditions apply).

Fleet buyers and novated lease buyers can take advantage of these incentives to lower the initial cost of obtaining hybrid cars, making them an even more attractive option. It’s a sensible policy to encourage us to drive greener vehicles and to tread a little more lightly on the earth. So you have to ask yourself why the Federal Government is ending the Electric Car Discount for hybrids on 1 April 2025, which seems a suitably foolish date for ending an eminently sensible policy.

Now, there’s one faint ray of hope that the incentive’s expiry date could be extended, and it comes in the form of a private member’s bill before the Senate to extend the exemption to 2030. Independent Senator David Van is its sponsor.

Senator Van argues that hybrids and PHEVs are a “reasonable stepping stone” to electric vehicles (EVs) where limited infrastructure and the higher prices of EVs are still ruling them out for many Australians.

“One of the fear mongering myths whipped up against electric vehicles (EVs) is range anxiety—the concern that EVs lack sufficient range and power for weekend getaways or long trips,” Senator Van said, introducing his bill to the parliament.

Perfect solution

“PHEVs bust this myth with the convenient blend of efficient, clean electric driving for everyday activities like school runs, shopping trips and commutes while still providing the reassurance of petrol backup when the electric charge runs low. They are the perfect hybrid solution, offering an accessible gateway for consumers hesitant to fully commit to battery electric vehicles.

“A realistic stepping stone is to extend the financial incentives which will in turn encourage more drivers to choose an EV for their family car. Effectively, this Bill opens the gate to increased use and purchasing of EVs, speeding up the process of cleaner transport in Australia,” he said.

So what are the prospects of Senator Van’s bill seeing the light of day? Well given that private member’s bills generally have a snowflake’s chance in hell of success at any time, and that on top of that we’re heading to an election early in the new year, you’d be right in thinking it’s exceedingly close to bugger-all. And that’s a pity.

Which means that if you want to take advantage of all the money-saving benefits of a novated lease on a new PHEV, then you’re going to have to do it before April the 1st 2025. So contact Fleetcare today on 134 333, because time’s tight, and you’d be a fool to miss out.

Written by
Mark Schneider

Mark is a successful copywriter with over 20 years of professional writing experience.

We welcome him as a guest blogger to Fleettorque.

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