Electric Vehicle Council
The Minns Government’s unflagged backflip on EV incentives will crimp the spread of electric cars to Sydney’s west, deteriorate air quality, and significantly increase the state’s carbon emissions, according to the Electric Vehicle Council.
Reports today have confirmed NSW Treasurer Daniel Mookhey plans to scrap a $3000 subsidy and reintroduce stamp duty for drivers who buy a new electric vehicle.
The move comes as sales data shows that NSW’s incentives were working – encouraging EV purchases to spread from wealthier areas to the west and to NSW regions. Since the NSW rebates have been in place, sales have gone up by 450 per cent and the most popular EV models have fallen in price by $8,000.
EVC chief executive Behyad Jafari said that the government’s proposed move was a betrayal of voters.
“I doubt the people who voted for this government thought they were voting to cut electric vehicle incentives to fund handouts to coal-fired power stations,” Mr Jafari said.
“Labor backed these EV incentives when the former government introduced them, and did not give any indication they were planning to cut them before the election.
“The NSW incentives, combined with more affordable EV imports, were just starting to drive significant uptake in Sydney’s west and the state’s regions. Now the government wants to kill that momentum.
“Wealthy people on the north shore will be fine under this change – they’ll continue to buy EVs, because they know they’re a superior option. But less well-off families in the west will be forced to stick to costly gas guzzlers and a time when petrol prices are going through the roof.
“What’s particularly galling is the reintroduction of stamp duty that was due to be replaced by road user charges in 2027. This important tax reform was in the best interest of motorists by replacing an upfront tax that often stopped people from getting into a newer, cleaner car.
“By reintroducing stamp duty for EVs the NSW Government has broken faith with voters.
“Fewer EVs means dirtier Sydney air, continued reliance on foreign oil imports, higher carbon emissions, and more budget pressure on everyday households. It’s foolish, short-sighted policy from a government that people would have expected more from.”
Mr Jafari urged the NSW Parliament to reject Labor’s changes in order to preserve the benefits of the existing policy settings.
“NSW was making outstanding progress on EV uptake under the previous government and the current policies were voted for by the Coalition, the Greens, and Labor,” Mr Jafari said.
“The Opposition, the Greens and the others in the NSW Upper House should defend the state’s interests and oppose the government’s short-sighted backflip.”