AUSTRALIA’S peak body for novated leasing has backed the “crucial” need for ongoing government support for EVs at an event held at Parliament House.

The National Automotive Leasing and Salary Packaging Association (NALSPA) said the support would be necessary to meet emission goals and to continue making EVs more accessible to a larger group of Australian motorists.

The association said that with the New Vehicle Efficiency Standard starting in 2025, greater education and awareness would be needed to address misconceptions about EVs and to more effectively highlight their benefits to motorists.

The event at Parliament House, called the Commonwealth Parliamentary Friends of Electric Vehicles (EVs), was co-hosted by NALSPA and the Electric Vehicle Council and the Federal Chamber of Automotive Industries (FCAI). It showcased some of the latest and affordable battery EVs (BEVs) and plug-in hybrid vehicle (PHEV) models in Australia. NALSPA said the increasing variety of EV models and government initiatives such as the fringe benefits tax (FBT) exemption on low and zero-emissions vehicles, were helping Australians to afford the latest clean and energy-efficient vehicles amid high cost-of-living pressures.

The association said it estimated that 40 per cent or more of all BEVs/PHEVs in Australia were now purchased through a novated lease, up from less than 2 per cent in 2022.

The lease helped Australians reduce their income tax, reduce their emissions and achieve household budget savings, it said.

EV sales are growing rapidly with VFACTS data showing a 120.5 per cent increase in PHEV sales year-to-date.

NALSPA said workers living in the outer suburbs, including Werribee (Victoria) and Kellyville (NSW), were leading in the adoption of EVs while employees in rural and regional Australia were also high adopters.

It said that concerns about EV driving range, charging infrastructure, and availability of larger vehicle types acted as barriers to broader EV adoption – evidenced in their slowing take-up rate – however, PHEVs were emerging as a practical transitional solution with government policy support. 

 Rohan Martin

NALSPA CEO Rohan Martin said: “Owning and operating a car is one of the biggest expenses for families so it’s encouraging to see EVs becoming increasingly affordable and available for more everyday Australians.

“While there is still more work to do to educate motorists about the benefits of low and zero-emissions cars, once Australians are in their EVs, they are unlikely to turn back to petrol or diesel cars. 

“Australians living in the outer suburbs and regional areas are embracing EVs, with plug-in hybrids experiencing a notable rise in sales – importantly with the assistance of government policy.”

Mr Martin said that it was important that PHEVs be included in any government support. 

“PHEVs act as an essential bridge to full electric driving,” he said.

“While BEV model availability and charging infrastructure is improving, plug-in hybrids provide a practical solution for motorists who are concerned about driving range or want a larger car that’s not yet available in pure EV form, all while enjoying the benefits of lower running costs and emissions. 

“Particularly amidst a cost-of-living crisis, ongoing government support to encourage PHEVs supply and take-up, along with BEVs, is critical to maintain affordability for cleaner versions of the types of vehicles Australians want to drive, while advancing the nation’s emissions reduction goals. Without such support, our race to reduce transport emissions will be slowed.”

Samantha Johnson

Electric Vehicle Council CEO Samantha Johnson said: “It’s clear that early adopters have embraced EVs, and now there is a need to educate and inspire more drivers to discover the superior performance, reduced ownership costs, and environmental benefits provided by electric vehicles of all shapes and sizes.”

The CEO of the FCAI, Tony Weber, said that as Australian motorists look to reduce their CO2 footprint it was critical that governments provide balanced policy support to aid the transition to a low-emissions future.

Tony Weber

“Policies, like the fringe benefits tax (FBT) exemption for BEVs and PHEVs have played an important role in helping to make these technologies more affordable and accessible to Australians, especially as cost-of-living pressures have increased,” he said.

“Extending the FBT exemption for PHEVs to align with BEVs will help more Australians to reduce their transport emissions and assist with vehicle operating costs, while critical recharging infrastructure catches up to consumer needs.”

By Neil Dowling