The Electric Vehicle Council is negotiating with NSW Labor to ensure that electric vehicles (EVs) are exempted from the party’s proposed luxury vehicle tax.

Labor’s policy would raise stamp duty on new and used vehicles to $7 per $100 for cars over $100,000, and $9 per $100 over $150,000. When announced, a carve out for EVs was not specified.

“You wouldn’t raise taxes on solar panels and you shouldn’t raise them on electric vehicles,” said Electric Vehicle Council chief executive Behyad Jafari.

“The last thing a smart modern state like New South Wales should be doing is actively discouraging people from purchasing EVs.

“Virtually everywhere, even in Trump’s America, consumers are offered large subsidies to encourage them toward EV purchase. It would be madness for New South Wales to buck this global trend so spectacularly.

“A carve out for EVs within Labor’s policy, however, could assist with encouraging the uptake of zero-emission vehicles in the luxury end of the market. This would be a very positive development.

“EVs are coming down in price and there are a range of new entrants in the affordable end of the market. But as things stand most purchases are occurring at the luxury end and that makes this policy important.

“More broadly, the state government should be pushing hard toward a rapid transition to EVs in New South Wales. Our cities could have clean, quiet roads. Drivers could be spared the costly unpredictability of the bowser. And the economy wouldn’t be completely beholden to imported foreign fuel.

“The EVC is currently working with NSW Labor to ensure this policy is calibrated sensibly if and when it is introduced.”



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