1 day ago
9
The boss of Polestar in Australia has called for a national strategy for electric vehicle subsidies, rather than incentives which vary state-by-state – and are currently dwindling in number.
Electric vehicle specialist Polestar has called upon the Federal Government to develop a national strategy for EV subsidies – rather than leave incentives in the hands of state governments.
It comes as electric-car incentives have been wound down by multiple states and territories around Australia – and a number of governments around the world have moved away from subsidising the purchase of new EVs.
Speaking to Drive at the launch of the Polestar 4 electric medium SUV, Polestar Australia managing director Scott Maynard said a “levelling of incentives” is in order and the current arrangement is “all over the place.”
The Federal Government has rolled out financial measures to support electric-car uptake – including investments in charging infrastructure, and Fringe Benefits Tax exemptions for certain novated lease purchases.
However, most electric vehicle subsidies – in particular cash rebates – are state-based and the degree to which they vary is significant.
For example, Western Australia offers buyers a $3500 rebate on the purchase of electric vehicles with a retail price of less than $70,000.
Meanwhile, governments from Victoria, New South Wales, and South Australia have all rescinded similar subsidies at the point of purchase. However, the lattermost state now offers registration fee discounts until mid-2025.
Every state in Australia has its own solution for driving electric vehicle uptake, and Polestar is taking the position that this is unfair to buyers.
“It would be great to see the varying levels of support that are offered on a state base to be brought into a national policy,” said Maynard.
“The government's doing what it can, and this electric roads initiative that has been set up, that's had a huge amount of money poured into it is starting to address that.
“But it would be really good to see a national policy on how electric vehicles are incentivized, given either tax breaks, stamp duty breaks or preferably LCT [Luxury Car Tax] breaks.
“Just so that it's not the case where an EV bought across state lines can be at completely different prices at completely different times.”
As an example, an entry-level Tesla Model 3 costs $57,961 drive-away in Western Australia – inclusive of a $3500 rebate, but in the state where on-road costs are most expensive – while the same car in South Australia is nearly $2000 more expensive at $59,851 drive-away.
Multiple state governments have rolled back their zero- and low-emission vehicle subsidies in the past 18 months.
Tom started out in the automotive industry by exploiting his photographic skills but quickly learned journalists got the better end of the deal. With tenures at CarAdvice, Wheels Media, and now Drive, Tom's breadth of experience and industry knowledge informs a strong opinion on all things automotive. At Drive, Tom covers automotive news, car reviews, advice, and holds a special interest in long-form feature stories.
