40% of businesses surveyed said they'd purchase an EV in 2023 if Albo's bill goes through

A new survey has found forty per cent of Australian businesses canvassed would buy an electric vehicle by the end of 2023 if the Electric Car Discount Bill passes.

In July this year, the Albanese Government introduced the Bill to Parliament, intending to remove fringe benefits tax (FBT) from electric vehicles to give more Australians access to battery-operated, hydrogen-fuelled and plug-in hybrid cars.

New research has revealed the Bill’s popularity among businesses – mostly SMEs – with 40 per cent indicating they would purchase an electric vehicle by the end of 2023 if the Bill gets through.

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The research, which was commissioned by Small Business Loans Australia, surveyed an independent panel of 210 Australian SME owners and decision makers.

“The Federal Government understands that the price of electric vehicles has been a major barrier to their adoption in Australia," said Alon Rajic, Founder and Managing Director of Small Business Loans Australia.

"Our research suggests that the removal of this barrier will have an enormous positive influence on business purchase decisions. It also indicates that Australian business owners support realistic Government efforts to achieving net-zero emissions – so much so, that they would get financing on their vehicles in a climate of fast-rising interest rates."

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Those canvassed included 44 per cent of micro-businesses (one-10 employees), 27 per cent of small businesses (11-50 employees) and 18 per cent of medium-sized businesses (51-200 employees) and 11 per cent of businesses with over 200 employees.

Interestingly though, 34 per cent of business owners said they would not invest in electric vehicles, regardless of the Bill’s introduction.

Of those, small businesses said they'd most likely purchase by the end of 2023 – including 57 per cent that said they actually would do so compared to 45 per cent of medium-sized firms and 21 per cent of micro-companies.

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Drilling the data down to likelihood by state or territory, the study found Victorian businesses are more likely to buy an electric vehicle at some point if the Bill passes – the option chosen by 71 per cent of respondents.

Meanwhile, 68 per cent of NSW businesses and 67 per cent in South Australia said the same thing, and those in Western Australia and Queensland are least likely to invest – with just 62 per cent and 58 per cent respectively choosing to switch if the the legislations makes it through.

If it passes, the Bill will exempt some electric vehicle purchases from being liable for fringe benefits tax. This exemption, however, only applies to cars below the luxury car tax threshold (set at $84,916 for 2022-23) and for which employees can also use as personal vehicles.