{"id":72284,"date":"2023-05-16T09:13:26","date_gmt":"2023-05-15T23:13:26","guid":{"rendered":"https:\/\/timesnewsgroup.com.au\/geelongtimes\/?p=72284"},"modified":"2023-05-16T09:16:40","modified_gmt":"2023-05-15T23:16:40","slug":"why-australias-electric-vehicle-market-is-soaring","status":"publish","type":"post","link":"https:\/\/timesnewsgroup.com.au\/geelongtimes\/news\/why-australias-electric-vehicle-market-is-soaring\/","title":{"rendered":"Why Australia’s electric vehicle market is soaring"},"content":{"rendered":"

While lagging behind other parts of the world, the Australian electric vehicle (EV) market has seen significant growth in recent years as more individuals opt for eco-friendly and sustainable modes of transportation. This growth is reflected in the increase in new EV purchases, with sales climbing from 21,000 in 2021 to 40,000 in 2022, according to the <\/span>Electric Vehicle Council<\/span><\/a>.\u00a0<\/span><\/p>\n

This can be attributed to the availability of affordable and high-performance battery electric (BEV) and plug-in hybrid (PHEV) models, which have become more popular among consumers for their impressive range and cost-effectiveness.\u00a0<\/span><\/p>\n

Financial incentives offered by the federal and state governments, as well as rising fuel costs, are also making EVs more attractive.<\/span><\/p>\n

And as more EV models are introduced, the demand for these eco-friendly vehicles is expected to keep growing.<\/span><\/p>\n

 <\/p>\n

A look into electric vehicles and their benefits.<\/b><\/p>\n

Unlike traditional petrol or diesel vehicles, electric vehicles are powered solely by electricity. These eco-friendly cars have rechargeable batteries that store electricity and power an electric motor to move the vehicle. With no emissions released during operation, EVs have the potential to significantly improve air quality and reduce greenhouse gas emissions, which is a big part of global efforts to tackle climate change.\u00a0\u00a0\u00a0<\/span><\/p>\n

With the increasing affordability and accessibility of electric vehicles, Australia can leverage this emerging technology to stimulate its economy, create new jobs, and reduce its reliance on imported oil. According to the Australian Conservation Foundation, the Australian economy could save almost half a trillion dollars<\/span> by 2035<\/span><\/a> by shifting to 100% electric vehicles and adopting better public transport.\u00a0\u00a0\u00a0<\/span><\/p>\n

Besides being environmentally friendly, EVs have other benefits, such as low maintenance costs. Compared to conventional vehicles, electric vehicles are significantly cheaper to operate, as electricity is typically cheaper than petrol or diesel fuel. They also require less maintenance since they have fewer moving parts and do not require oil changes. All these factors make them appealing for cost-conscious drivers seeking to reduce their carbon footprint and embrace a more sustainable future.\u00a0\u00a0\u00a0<\/span><\/p>\n

Here’s a look at the factors affecting the growth of the EV market in Australia:<\/span><\/p>\n

 <\/p>\n

1. Fringe benefits tax exemption on novated leasing.<\/b><\/p>\n

Novated leasing is a popular way for employees to finance a car. Now, thanks to a recent change to Australia\u2019s tax rules, it\u2019s become particularly attractive for those buying an EV.\u00a0<\/span><\/p>\n

Late last year the federal government introduced the Treasury Laws Amendment (Electric Car Discount)<\/span> Bill 2022<\/span><\/a> to modify the Fringe Benefits Tax Assessment Act 1986 by exempting eligible low and zero-emission vehicles from fringe benefits tax.<\/span><\/p>\n

This removes a significant cost for people financing an electric vehicle through a novated lease and means further savings in the tens of thousands of dollars compared to other ways of paying for an EV.<\/span><\/p>\n

To recap on what a novated lease is, it involves a three-way agreement between the employee, their employer, and a finance company. In this setup, you choose a car and enter into a lease agreement with the finance company. Then, your employer agrees to make the lease payments on your behalf directly from your pre-tax salary, which reduces your taxable income. This makes it a highly sought-after option for those looking to purchase their own car.\u00a0<\/span><\/p>\n

Aside from the potential tax savings, allowing you to keep more of your income and access a car for personal use, one of the main advantages of a novated lease is that lenders may be more willing to approve your finance. This is because the payments are automatically made on your behalf by your employer, reducing the risk of default. <\/span>Novated Lease Australia<\/span><\/a> has a lot more information on the benefits of novated leasing.\u00a0<\/span><\/p>\n

Essentially, by making it more affordable for consumers to purchase an electric vehicle, novated leasing is helping drive the growth of the EV market in Australia.\u00a0\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2. Other government incentives and policies.<\/strong><\/p>\n

There are also various other tax incentives and rebates available for both individuals and businesses who opt for EVs, making them an even more attractive option.\u00a0\u00a0\u00a0<\/span><\/p>\n

Across the country, governments have introduced various incentives for EV buyers, such as rebates and waivers of registration fees or stamp duty. In addition to individual incentives, some states and territories are also making significant commitments to electrifying public transportation. For example, New South Wales (NSW) has pledged to <\/span>electrify its fleet of over 8,000 buses<\/span><\/a>, focusing on using renewables to power them (known as zero-emissions buses). This includes electrifying Greater Sydney\u2019s fleet of buses by 2035.\u00a0\u00a0\u00a0<\/span><\/p>\n

With these incentives in place, the transition towards a greener and cleaner future is becoming increasingly accessible and achievable.\u00a0<\/span><\/p>\n

The recently-launched <\/span>National Electric Vehicle Strategy<\/span><\/a> is also expected to be a game-changer for the electric vehicle market in Australia. For example, the introduction of emission standards is seen by many as a positive step towards reducing emissions and improving air quality and will hopefully pave the way for more investment in electric vehicle infrastructure across the country. <\/span><\/p>\n

\"\"<\/p>\n

3. Availability of charging infrastructure.<\/strong><\/p>\n

The availability and quality of <\/span>charging infrastructure<\/span><\/a> have long been major concerns for motorists when considering an electric vehicle. However, significant progress has been made in addressing these issues across regional Australia in recent years. With the implementation of new technologies and the addition of more charging stations, the fear of running out of power on long journeys is becoming less of a concern for drivers of electric vehicles.\u00a0\u00a0\u00a0<\/span><\/p>\n

One of the most significant improvements made to the charging infrastructure is the adoption of fast charging technology. This innovative technology allows motorists to charge their vehicles in minutes rather than hours, significantly reducing waiting time at charging stations. With fast charging now widely available at many charging stations, electric cars have become a more practical and convenient option for drivers, making it easier than ever to adopt sustainable transportation.<\/span><\/p>\n

 <\/p>\n

In conclusion: Australia’s EV market will keep on soaring.<\/b><\/p>\n

As more Australians recognize the many benefits of electric vehicles, the demand for electric vehicles will likely continue to increase in the coming years. In fact, Australia’s EV market is expected to soar with an <\/span>annual growth rate of 22.27%<\/span><\/a>, resulting in a projected market volume of AUD$6.55bn by 2027 and unit sales expected to reach 71.90k vehicles. This trend is certainly good news for the environment and the economy, as it creates the potential for new investment opportunities and growth in the automotive industry while promoting sustainability.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

While lagging behind other parts of the world, the Australian electric vehicle (EV) market has seen significant growth in recent years as more individuals opt for eco-friendly and sustainable modes of transportation. This growth is reflected in the increase in new EV purchases, with sales climbing from 21,000 in 2021 to 40,000 in 2022, according […]<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":153,"featured_media":72285,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"post_folder":[],"class_list":["post-72284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\nWhy Australia's electric vehicle market is soaring - Geelong Times<\/title>\n<meta name=\"description\" content=\"Discover the driving factors behind the rapid growth of Australia's electric vehicle market and what the future holds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/timesnewsgroup.com.au\/geelongtimes\/news\/why-australias-electric-vehicle-market-is-soaring\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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