EV vehicles

NSW takes nuanced approach to EV taxation issue

 The Electric Vehicle Council has commended the NSW Government for taking a consultative and nuanced approach to the issue of electric vehicle taxation, after Treasurer Dominic Perrottet ruled out the immediate introduction of a blunt Victorian-style EV tax.

Having previously indicated enthusiasm for an electric vehicle tax, Mr Perrottet has consulted openly and constructively with experts and industry and has now nuanced his government’s approach. The NSW Treasurer has flagged the development of a ‘holistic’ package that will support EV uptake and has committed to delaying any new charges until the market has had a chance to mature.

Behyad Jafari, chief executive of the Electric Vehicle Council praised the NSW Government for its enlightened approach: “Seizing the abundant benefits of the electric vehicle transition whilst simultaneously identifying new revenue streams for the state is a tough balancing act. So we respect the NSW Treasurer’s consultative and thoughtful approach to meeting this challenge.”

Jafari added: “The NSW Government has shown a genuine understanding of what electric vehicles can deliver for the state: cleaner air, new jobs, and a pathway to net zero emissions. The NSW Government appears committed to develop policy that supports and accelerates the state’s transition to electric vehicles. To date that commitment has been met with enthusiasm, including the first Australian made electric bus being manufactured in NSW.”

Jafari does not expect to agree with everything the NSW Treasurer proposes, but what he does respect is the fact that the Treasurer is genuinely listening on this complex policy area.

Done well, road user charges are a sensible way forward. But they should not be introduced in a way that encourages people to stay in oil-thirsty vehicles. That’s unfortunately what Victoria’s blunt EV tax will do, and it is a trap Mr Perrottet has thankfully avoided for his state. We look forward to continuing our discussions with Mr Perrottet and his colleagues and we are optimistic that New South Wales can take its place in the exciting electric vehicle revolution happening across the globe.”

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