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The Australian Federal Government has approved Treasury Law Amendment Bill (Electric Vehicle Discount)will offer discounts of up to $2000 on the purchase price of battery-powered and plug-in hybrid vehicles, as well as exempting additional benefit tax (FBT) for new fleets and leases.

Discounts apply to electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) that retail below the luxury car tax (LCT) threshold of $84,916 and are offered in conjunction with other state and territory incentives.

Electric vehicles will also be prioritized in government vehicle purchasing decisions to both reduce emissions in government transport and deliver more electric vehicles to the used market.

The bill passed the Senate with 31 votes against 24 after an agreement was signed between the Labor Party, the Green Party and Independent Senator David Pocock.

A change to the Bill would mean that PHEVs would initially be covered by the Bill but face a cease-and-desist provision that would cause the incentive to expire on April 1, 2025.

Electric Vehicle Council (EVC) chief executive Behyad Jafari said the passage of the Bill was a win for thousands of electric vehicle buyers in Australia, including those in the used car market.

“This is a landmark moment for EV policy in Australia. It’s a testament to how far we’ve come in just a few short years,” he said.

“This bill will allow thousands more Australians to get behind the wheel of an electric vehicle, where they can access the benefits of lower fuel bills, reduced pollution and an enjoyable driving experience.

“Making new electric vehicles easier to buy will drive the creation of a strong used electric vehicle market, which is critical for affordability.

“By achieving stronger EV uptake, we will significantly reduce Australia’s carbon footprint and reduce our precarious dependence on foreign oil.”

The Australian Automobile Dealers Association (AADA) joined EVC in welcoming the legislation, saying the move would encourage Australian consumers to use zero- or low-emission vehicles.

AADA CEO James Voortman said: “This is a good result that delivers on the government’s electoral commitment to exempting qualifying electric vehicles from the secondary benefit tax.

“The passage of this Bill will provide welcome relief to all employers and their employees who have rented an eligible electric vehicle since July 1, 2022, and it will also give certainty to those who are considering doing so in the future.

“We would like the Bill to pass without cutting provisions for plug-in hybrid vehicles, but we acknowledge this represents a consensus view.

“We believe PHEVs provide a good solution for many Australian families with certain mobility needs, particularly in rural areas. We should not overlook the fact that PHEVs enjoy significant emission reduction benefits over internal combustion engine vehicles.

“It is imperative that employees who sign a PHEV lease before 1 April 2025 are entitled to the FBT concessions for the duration of their lease, so the latest amendments are set by the Australian Green Party and the Senate. Dr. David Pocock suggested is very important.

“This bill represents a good first step towards the National Electric Vehicle Strategy, and we look forward to working with the government and our auto industry colleagues to accelerate the transition,” he said. converted to net zero”.

Mr Voortman’s sentiments were echoed by the Federal Chamber of Automotive Industry (FCAI).

The FCAI said that the elimination of import duties on zero-emissions and low-emission vehicles below the luxury car tax threshold (LCT) will help strengthen the foundations needed for future use of electric vehicles, but more work still needs to be done.

“Automakers support financial incentives as part of more policy measures,” said Tony Weber, chief executive officer of FCAI.

“This is an important step in addition to the government’s plan to develop an electric vehicle strategy and Current assessment of fuel quality. Ideally, the New Year would see action in the area of ​​federally mandated emissions targets for the light vehicle sector.

“This is a positive move, but more action is needed. We look forward to joining with

government to achieve robust, practical and challenging policy settings that will support the decarbonization goal of Australia’s light vehicle fleet.”

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