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FCAI welcomes SA Government’s proposed electric vehicle subsidy

The South Australian Government is making a strong statement regarding the future of zero and low emission vehicles and future financial reform through the legislation planned to be introduced into State Parliament today according to the Federal Chamber of Automotive Industries (FCAI).

“The approach of the Government through the proposed Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 is consistent with actions being taken across the world to support the introduction of new vehicle technologies that reduce CO2 emissions and meet the mobility needs of a growing number of motorists,” according to FCAI Chief Executive Tony Weber.

“The proposed customer subsidy of $3,000 for electric vehicles provides a positive signal to customers and car companies that this emerging technology is a key part of our transportation future.”

Mr Weber also acknowledged the Government’s recognition that reform of road user charging – regardless of the vehicles being driven – was a key part of future financial arrangements as revenue from fuel excise reduces over the longer term.

“The FCAI is a strong advocate for the reform of outdated, inefficient and burdensome taxes and charges to be replaced with one efficient road user charge that can apply to any type of vehicle.

“The proposed user charge for electric vehicles is consistent with the charge proposed in other States which provides a platform for national consistency in the absence of a Federally-led approach.

“The timing of the introduction of the charge in 2027, or when EVs represent 30% of sales, will allow some time for the market to adjust. This will result in low emission vehicles taking a greater share of the overall automotive market,” Mr Weber said.