ALP promises cheaper electric cars and a national charging infrastructure

At its official election launch over the weekend, the Australian Labor Party announced it will introduce an ‘Electric Car Discount’ if elected, which will exempt brand-new electric vehicles (EVs) from import tariffs and Fringe Benefits Tax.

The move is expected to reduce the cost of some new EVs for Australian buyers.

However, a number of electric vehicles are already exempt to import tariffs, including the Nissan Leaf and Mini Cooper SE, thanks to a Free Trade Agreement formed with the United Kingdom in June 2021.

If it wins the upcoming Federal Election, the ALP says it will also create a $500 million ‘Driving the Nation Fund’ to support renewable fuels.

The policy would double the $250 million pledged to the Future Fuels Fund by the current coalition government, with the money to be spent on hydrogen, biofuels, and electric vehicle infrastructure.

If elected, Labor has promised a $39.3 million investment – matched by the NRMA in New South Wales – which it says will result in EV chargers built at an average interval of 150 kilometres on major roads around the country.

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Highways across regional areas of Western Australia, Northern Territory, South Australia, and Queensland are expected to benefit, along with additional chargers set to be placed across the Nullarbor between Perth and Adelaide.

"We know range anxiety remains a major impediment to Australians purchasing EVs,” CEO of the Electric Vehicle Council, Behyad Jafari, said following the announcement.

“Although much of this anxiety is misplaced, building a modern network of charging infrastructure would send a strong signal that there’s nothing to fear,” said Jafari.

"City drivers are flocking to EVs because the benefits are so clear and obvious. For regional drivers, hesitancy is stronger, but that’s why it’s excellent to see the NRMA committing to partnering with the Federal Government to roll out regional charging infrastructure and make EVs an option for all Australians.”

Labor said the Driving the Nation Fund will also invest $80 million to deliver up to 16 hydrogen refuelling stations along Australia’s busiest freight routes.

A Memorandum of Understanding was created between Queensland, New South Wales, and Victoria in March to build a hydrogen superhighway for heavy vehicles, though it’s not clear whether the announcement over the weekend is directly related to this project.

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“The future of road transport is hydrogen and electric,” said Catherine King, Shadow Minister for Infrastructure, Transport and Regional Development.

“But to take advantage of the future, we have to prepare for it now,” she said, explaining how the ALP will work with State and Territory Governments to “build a cleaner, cheaper road network for Australian families and Australian businesses”.

The recent Federal Budget 2022-23 outlined by the Federal Government –currently led by the Liberal National Party – announced $1.5 billion for the hydrogen industry in Australia, but made no provisions for electric vehicles.