Incentives to remain consistently inconsistent

DISPARATE state and territory policies around incentives for electrified vehicles are here to stay, with little that the federal government can do to level the playing field.

Speaking with GoAuto after inaugurating the Melbourne Electric Vehicle Show last Friday, federal MP for Higgins and co-chair of the parliamentary friends of electric vehicles, Michelle Ananda-Rajah, acknowledged the disparities but said the complexity of Australia's taxation system made a uniform federal solution unlikely.

“The short answer is probably not,” Dr Ananda-Rajah told GoAuto, although she conceded that “there have been a few occasions since Federation where the Commonwealth has overridden and come over the top and then those other taxes have disappeared”.

“I think it speaks to a wider problem that we have with our taxation system, which is overly complex with state taxes, and then there are federal taxes.”

Considering the Australian Labor Party holds power at federal level as well as in every state and territory government except Tasmania, the vast inconsistencies appear to indicate a level of division within the ALP — especially the seemingly hostile approach taken in Victoria.

“I think the general principle that should guide us is that we don't want to be introducing barriers to EV uptake full stop,” said Dr Ananda-Rajah.

“We want to be encouraging people to take up these cars. We, as a Commonwealth, have to work with our states collaboratively in order to make that happen.

“But I think everyone is alive to this disparity in taxes and subsidies and various things around the country.”

Dr Ananda-Rajah said collaboration among different levels of government was imperative to streamline EV adoption, a cause likely to gain momentum as public awareness of climate change increases.

“We are in the teeth of this climate emergency right now; there are fires burning in New South Wales and Queensland, and it is very clarifying in the minds of government.”

Having owned an electric vehicle since before she was elected to parliament and about to make her second EV purchase, Dr Ananda-Rajah has rare lived experience among politicians of the pros and cons of EV ownership.

Although not supportive of mandating elected officials to do the same in order to potentially help them make better-informed decisions, she did say the Commonwealth encourages political leaders to set an example.

To this end, a program supplying EVs to parliamentarians on a waiting list has garnered substantial interest and uptake.

On the subject of recently concluded consultation over fuel efficiency standards, Dr Ananda-Rajah said participating in talks with commercial vehicle operators had been eye-opening in terms of the unique requirements and willingness to embrace new propulsion technologies in that sector.

She emphasised the importance of a tailored approach to support industries such as haulage and mining, which have unique vehicle requirements but are also under pressure to move fast in order to meet ESG targets and are also in a position to quickly benefit from total cost of ownership advantages.

From her experience as an EV owner, Dr Ananda-Rajah said total cost of ownership benefits also applied to privately owned passenger and light commercial vehicles but emphasised the need for manufacturers to prioritise models better suited to the Australian market.

She warned that without swift action, transport emissions could surpass all other sources by 2030, making EVs indispensable in decarbonising Australia's vehicle fleet.

To this end, removal of import tariffs on EVs and other tax breaks can reduce their up-front cost by around $5000 on average, while investments in charging infrastructure will, in time, make EVs more accessible to those without the ability to charge at home or need to take longer journeys.

On the charging front, Dr Ananda-Rajah said in her experience of EV ownership, the range of most modern models is sufficient to cover a week or more of driving without having to recharge and that a mixture of home and destination charging had proved relatively friction free and less expensive than her previous internal combustion model, as well as being cheaper to maintain.

Upcoming fuel efficiency standards should also help level the playing field for EVs compared to internal combustion vehicles.

Despite accelerating uptake among Australians, there is still a long way to go in terms of addressing legitimate concerns about making the switch, as well as making the total cost of ownership equation easier to understand given the higher retail price of EVs.

Looking ahead, Dr Ananda-Rajah expressed optimism about technological advancements and a broader selection of more affordable EVs entering the Australian market in the coming years, which she expected to significantly reduce barriers to adoption.

She stressed the importance of ongoing discussions and practical experiences like the Melbourne Electric Vehicle Show in empowering more Australians to explore and embrace electrified transport.

As witnessed by GoAuto and noted by some of the manufacturers exhibiting at the show — among which were Audi, Hyundai, Peugeot and Polestar as well as a number of brands represented on the hall floor by dealership group Zagame — organisers seemed to be taken by surprise at how many members of the public showed up on the opening Friday.

"Our goal is to witness more electric vehicles on Australian roads," concluded Dr Ananda-Rajah.