EV Sector Urges Gov't: Keep Electric Car Discount
Key Facts:
* The Electric Car Discount has propelled more than 105,000 additional EV purchases and helped lift EV market share in Australia from 2% in 2021 to 13% today.
* Reduction or removal of subsidies in Germany, Canada and New Zealand saw EV market share backslide in all markets.
* EVC is calling for expansion of incentives - including rebates and GST exemptions - for Australians who can't access novated leasing.
9 February 2026
The transition to cheaper-to-run, cleaner vehicles for Australian drivers could stall if the Federal Government makes significant changes to tax rules that have supercharged EV sales since July 2022.
In its submission to the Federal Government's statutory review of the Electric Car Discount, the EVC said the policy has been a game-changer - propelling more than 105,000 additional EV purchases, tripling the size of the second-hand EV market and delivering up to $3 in economic and health benefits for every dollar invested.
EVC CEO, Julie Delvecchio said the industry welcomed the review of the Electric Car Discount at a time when policy certainty around accelerating EV uptake remained critical to Australia's 2035 emission reduction targets.
"The Electric Car Discount has helped take Australia from an EV trickle to a real market for people who want to drive cleaner cars and save up to $3,000 each year on fuel and maintenance," Ms Delvecchio said.
"With EV upfront costs still higher than comparable internal combustion engine cars, tens of thousands of Australians living in outer suburbs - including firefighters, teachers and nurses - could only afford their first EV thanks to the Electric Car Discount.
"The Discount has also stimulated a wave of affordable, off-lease EVs that are now flowing through to the second-hand market, putting them within reach of more everyday Australians.
"However, the job is not done. Australia's EV adoption needs to accelerate towards the target of 5 million EVs by 2035, and international experience clearly shows that removing demand-side incentives too soon can have a drastic impact on EV uptake.
"We know the risks that come with removing EV incentives too early. Canada and Germany have both recently re-introduced EV subsidies worth $CAD2.3 billion and €3 billion, respectively, after the premature withdrawal of incentives reduced EV sales by up to 12 per cent.
"We look forward to working with the Government to ensure the Electric Car Discount continues to support the growth of EVs which is central to Australia achieving its emission reduction goals", Ms Delvecchio said.
Electric Car Discount has delivered big results
The EVCs submission highlights the many achievements the Electric Car Discount has delivered:
Risks of winding back support
Policy recommendations
The EVC's submission urges the Government to ensure that EVs remain affordable for working Australian families and that uptake continues to accelerate towards 5 million EVs by 2035. Key recommendations include:
** Read the EVCs full Submission to the Review of the Electric Car Discount here.
About us:
The Electric Vehicle Council is the national peak body representing the electric-vehicle industry in Australia. Its members span vehicle manufacturers, charging infrastructure providers, energy companies, and financiers. The EVC's mission is to accelerate the electrification of transport for a sustainable and prosperous future.
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