Electric vehicle incentives in Australia compared to rest of the world

[Capital_Electron]

I hope I am proven wrong but I don't believe we will see any EV incentives of any substance in Australia for a number of reasons:

• The success of EV incentive programs in other countries has not proven to be widely successful. This represents high risk for any government.
• Cost/benefit for the government - Australia does not suffer from many of the problems that EV uptake addresses eg. Significant air pollution
• Whilst it is essentially dead, Australia still has a car manufacturing industry to support. Unfortunately we don't build electric cars.

As has been discussed, the electrification of transport is inevitable. Contrary to most posts here though, rather than incentives, I would prefer to see market forces driven by superior products transform the industry and force the big players to either electrify or disappear altogether - I think this will happen faster than many think. Importantly, this outcome would prevent another round of 'they only survive because of government handouts' that renewables are often branded with.

 

[Xwing]

I hope I am proven wrong but I don't believe we will see any EV incentives of any substance in Australia for a number of reasons:

• The success of EV incentive programs in other countries has not proven to be widely successful. This represents high risk for any government.
• Cost/benefit for the government - Australia does not suffer from many of the problems that EV uptake addresses eg. Significant air pollution
• Whilst it is essentially dead, Australia still has a car manufacturing industry to support. Unfortunately we don't build electric cars.

As has been discussed, the electrification of transport is inevitable. Contrary to most posts here though, rather than incentives, I would prefer to see market forces driven by superior products transform the industry and force the big players to either electrify or disappear altogether - I think this will happen faster than many think. Importantly, this outcome would prevent another round of 'they only survive because of government handouts' that renewables are often branded with.

We have incentives for solar power. But that aside this discussion is less about direct incentives and more about removing the Luxury Car Tax (LCT) and some Stamp Duty. It's about removing the disincentive that exists. And not to protect an industry but to encourage the uptake for something that though almost certainly inevitable still needs to happen as rapidly as possible for it to be truly effective.

 

[Capital_Electron]

We have incentives for solar power. But that aside this discussion is less about direct incentives and more about removing the Luxury Car Tax (LCT) and some Stamp Duty. It's about removing the disincentive that exists. And not to protect an industry but to encourage the uptake for something that though almost certainly inevitable still needs to happen as rapidly as possible for it to be truly effective.

The Luxury Car Tax (LCT) is a form of wealth distribution that unfortunately Tesla is not immune to. After all, a Tesla IS a luxury item no matter how you look at it - other electric vehicles can be purchased well under the LCT threshold, they just aren't as desirable! This argument will be moot in the short/medium term though with the arrival of the Model 3 or similar. Don't get me wrong though, I am all for any means to increase the uptake of EVs and have written to my Territory minister to that affect in the past, but I am realistic about any government relaxing the rules that will benefit a single manufacturer in this space.

My Model 3 deposit is ready to go! :smile:

 

[Xwing]

The Luxury Car Tax (LCT) is a form of wealth distribution that unfortunately Tesla is not immune to. After all, a Tesla IS a luxury item no matter how you look at it - other electric vehicles can be purchased well under the LCT threshold, they just aren't as desirable! This argument will be moot in the short/medium term though with the arrival of the Model 3 or similar. Don't get me wrong though, I am all for any means to increase the uptake of EVs and have written to my Territory minister to that affect in the past, but I am realistic about any government relaxing the rules that will benefit a single manufacturer in this space.

My Model 3 deposit is ready to go! :smile:

Not saying that the LCT should be removed only for Tesla vehicles but all EV's. Same with Stamp Duty. This will encourage auto makers to build and promote EV's and encourage buyers to buy electric. It's a brilliant way for government to participate in exactly what they have agreed on in Paris. And although we probably need a carbon tax this is a classic direct action approach to the problem of emissions. If this is going to cause a revenue issue then there are a myriad of places to make up for it. Make this about sustainability not wealth distribution. Tax high income earners some place else for that.

 

[timpoo]

I hope I am proven wrong but I don't believe we will see any EV incentives of any substance in Australia for a number of reasons:

• The success of EV incentive programs in other countries has not proven to be widely successful. This represents high risk for any government.
• Cost/benefit for the government - Australia does not suffer from many of the problems that EV uptake addresses eg. Significant air pollution
• Whilst it is essentially dead, Australia still has a car manufacturing industry to support. Unfortunately we don't build electric cars.

As has been discussed, the electrification of transport is inevitable. Contrary to most posts here though, rather than incentives, I would prefer to see market forces driven by superior products transform the industry and force the big players to either electrify or disappear altogether - I think this will happen faster than many think. Importantly, this outcome would prevent another round of 'they only survive because of government handouts' that renewables are often branded with.

I think eventually market forces will take over, probably by 2018-2020, which isn't too far away. Gov incentives should be introduced in the meantime to get auto manufacturers interested in Australia and start bringing their products here. Otherwise, we'll fall behind the rest of the world.

EV incentive programs around the world have proven to be ridiculously successful, so much so that they've had to curb them back in a few countries/regions. Just look at all the Scandinavian countries, China, California and even the UK. So I'll have to disagree with you there.

EV uptake in Australia is not to solve an existing problem, but rather part of a larger package that paves the way for the future of Australian industry. We can still be an energy and energy technology exporter, but one that is focused on renewables and associated technologies. Electric cars form a huge part of that struggle.

The Australian car industry at this stage is fairly irrelevant. However, the parts manufacturers should not be. We could be pioneering EV parts manufacturing if the government had enough focus, and in some cases, like Victoria with their Future Energy Fund, just might.

So I think the future is bright, we just need to plug the gap between now and then.

 

[meloccom]

So I think the future is bright, we just need to plug the gap between now and then.

Plugging the gap between now and then is the key. I would have been happy to pay the LCT et all if the government was using the money to establish a fast charge network, starting in the cities and stretching nationwide.
I know this is not popular, but we have done this before, telephone networks, electricity, water and the NBN were all created by governments during the early less profitable periods and then subsequently sold off to private enterprise.
A national EV Quick charge network and legislation encouraging autonomous car development may just turn the tables and make Australia a development centre for sustainable transport, making it the smart country, not just the lucky one.
Hey Malcolm, are you there?

 

[paulp]

Plugging the gap between now and then is the key. I would have been happy to pay the LCT et all if the government was using the money to establish a fast charge network, starting in the cities and stretching nationwide.
I know this is not popular, but we have done this before, telephone networks, electricity, water and the NBN were all created by governments during the early less profitable periods and then subsequently sold off to private enterprise.
A national EV Quick charge network and legislation encouraging autonomous car development may just turn the tables and make Australia a development centre for sustainable transport, making it the smart country, not just the lucky one.
Hey Malcolm, are you there?

To be a smart country you need a smart decision makers. Might be waiting a while.

 

[LGGD]

I'm in Hong Kong and emigrating back to Australia in a few years. It's horrible to think I'll sell my HK model S and buy a new one in Sydney. Right now I bought the model S at 0% tax. (HK has a first registration tax of 100% of cars in the luxury class) I also could write off the whole vehicle cost off company expenses in year 1 and we pay zero registration tax each year. And every charging station here is currently free.

I want to stay clean energy when I come back to Sydney but man this car changeover is going to hurt so bad. I don't know what the Australian government is doing but for sure they have the worst green policies in the world right now

I presume you are aware of these beneficial provisions with regards to the import of your car into Australia when you return:

Personal Imports Option

GST, LCT and duty are still payable but they should be calculated on the 'landed value' i.e. Used value.

 

[Xwing]

So I've been sending out emails and pushing anything I can on Twitter. The only Politician who I've had some ongoing discussions with is Greg Barber leader of the Greens in Victoria. But it seems there is now some momentum behind the idea of incentives or tax reductions for EV's in Australia. If there is a time to push this it's now. I understand it doesn't help those who already own a Tesla and their resale price but lets face it, with the model 3 coming we are not in this for the asset. Getting more Teslas on the road is good for everyone as it encourages Tesla to extend the supercharger network and build support here.

Norway has over 75,000 EV's on the road now because of their incentive schemes, (dropping all non recurring taxes etc). Norway is about the same size and population as Victoria!

This article came out today - Worth a read and a share.
AGL Energy, Tesla in alliance to drive uptake of electric vehicles

 

[houdini]

One thing to remember when comparing prices in Oz with other countries, like the USA. California adds about 10%+ to the price listed on the Tesla site, while Oz includes 10% GST...same same. The tesla site in the California, does INCLUDE the tax incentives, as does Oz

but you get a crapload of other incentives including $7500 tax rebate, drive in bus lanes, etc etc.

 

[houdini]

I'm not sure guys. I get it that the U.S has incentives as the EV industry is a large, growing employer that replaces sunset industries. But that is not the case here.

What you are asking for are incentives to make the cars cheaper - but what I like is that you and I bought our cars simply because they are better than ICE alternatives. If our (extremely expensive) Telsas are subsidised by the public purse it creates anger that all wage earners are part-paying for our fairly extravagant choices - and that is the opposite of what we want to achieve. Even worse though, no product can survive if it relies on government help like the Aust car industry does (or did....).

It would be cool if they made the Commodore with Tesla dual motors, 0-100 in sub 4 secs for say $80k and subsidise the cost to keep the jobs. But until then I think that the fact that Tesla has not required govt help to get a foothold in Aus is something to celebrate.

General News Manufacturing Axiflux - Australia was ‘really close’ to Commodore EV | GoAuto

Commodore yeah, except being made by a dinosaur company with a backwards board and no vision it never had a chance.

 

[M0DEL³]

To be a smart country you need a smart decision makers. Might be waiting a while.

In a democracy, to get smart leaders requires an informed and concerned population. Which explains, in large part, why democracies progressively devolve into failed socialist states. In general, Leaders are reflection of the society.

 

[Chuq]

This article came out today - Worth a read and a share.
AGL Energy, Tesla in alliance to drive uptake of electric vehicles

The document mentioned in this article is here:

http://climateworks.com.au/sites/de...rnment_vehicle_emissions_discussion_paper.pdf

It has generated a bit of news coverage - another article from the Daily Fail here:
AGL Energy and Transgrid want benefits for Tesla Model 3 owners

[Edit: On reading the article in detail myself, it's just a copy of that crappy Choice article] :-/

 

[BenT]

South Australia offered, but Tesla said “no” to Adelaide EV factory

It is hard to judge but one has to wonder whether this is just another half baked government idea. Too little too late I suspect. The time to approach Tesla to come to SA would have been 1-2 years ago and should have been paired with rebates and incentives similar to Norway and other countries where Tesla has been selling well. Government purchase contracts would have also helped. It seem Australian Police are looking for a replacement for the Holden Commodore. Imagine our cops on the road in a Tesla P90DL!

 

[Seesaw]

What kind of incentives would people think would be appropriate?

Personally I think touching LCT is a bad move. It would send the wrong signals to the wider public that electric vehicles are for the wealthy - and that only wealthy people will benefit. It also isn't a consistent incentive as someone spending $250,000 gets a bigger incentive than a $100,000 purchase.

I think a set $2000-$5000 rebate would be ideal. It has precedent as the Liberal government (years ago) used to give a $2000 rebate on LPG conversions or new LPG cars.

Fairly easy to implement. With the LPG rebate say if you bought a new Falcon the dealer would sign a form, you attach the invoice and send it in to Centrelink. You then get the money deposited into your account.

 

[Brian May]

As much as I would like to see Tesla manufacturing in Australia, I suspect Tesla won't have the resources (money and experienced personal) required to open up a new factory right now and and any resources they allocate for this would take away from the resources they need to manufacturer Model X and Model 3.

 

[paulp]

South Australia offered, but Tesla said “no” to Adelaide EV factory

It is hard to judge but one has to wonder whether this is just another half baked government idea. Too little too late I suspect. The time to approach Tesla to come to SA would have been 1-2 years ago and should have been paired with rebates and incentives similar to Norway and other countries where Tesla has been selling well. Government purchase contracts would have also helped. It seem Australian Police are looking for a replacement for the Holden Commodore. Imagine our cops on the road in a Tesla P90DL!

Cannot see tesla opening manufacture in a country that wont approve the most basic autonomous feature in full -summon. SA claimed it wanted to lead the world last nov with that silly volvo weekend demonstrating 'world first' future featues that adelaide tesla owners already had. Hardly a positive acknowledgement of tesla.
So we lead the world with one of the highest labour rates, no significant acceptance of autonomy, and no EV incentives other than a very small tax reduction. Cant imagine why tesla wont set up here.

 

[paulp]

What kind of incentives would people think would be appropriate?

Personally I think touching LCT is a bad move. It would send the wrong signals to the wider public that electric vehicles are for the wealthy - and that only wealthy people will benefit. It also isn't a consistent incentive as someone spending $250,000 gets a bigger incentive than a $100,000 purchase.

I think a set $2000-$5000 rebate would be ideal. It has precedent as the Liberal government used to give a $2000 rebate on LPG conversions or new LPG cars.

Fairly easy to implement. With the LPG rebate if you bought a new Falcon the dealer would sign a form, you attach the invoice and send it in to Centrelink. You think get the money deposited into your account.

Agree with the rebate concept, however what if it was offered on a 50/50 basis on the purchase of additional solar panels, thereby ensuring electric cars are pollution free during operation.

 

[Brian May]

Personally I think touching LCT is a bad move. It would send the wrong signals to the wider public that electric vehicles are for the wealthy - and that only wealthy people will benefit.

I think the LCT does send the signal that electric cars are only for the wealthy. I don't want a luxury car, I just want something that will get me from A to B. So I think we do need to remove LCT.

I would hope the Model 3 is below the LCT threshold, however it wouldn't surprise me with some configurations (e.g. bigger battery) it could exceed it.

 

[Brian May]

Cannot see tesla opening manufacture in a country that wont approve the most basic autonomous feature in full -summon.

Is there a list somewhere of features changed/remove in order to sell the Tesla S in Australia? I seem to recall somebody also saying the console web browser had to be changed or disabled too.