The Labor government, after it took office, allowed EVs to be bought on a novated lease through your employer without having to pay fringe benefit tax. Too complicated to explain to non-Australians, but in essence it allows you to have an EV on lease at a substantial discount equal to your marginal tax rate plus the 10% general sales tax. For people on the lowest marginal tax rate (above zero), this equates to a ~30% tax cut. The introduction of this incentive caused a huge jump in EV sales, followed by a bit of a slump. This slump was worsened by Tesla sales declining fast, as Tesla has until recently made up most of the sales of EVs.
But over the last few months, the big jump in the number of models available in Oz has led to a rebound in sales. BYD has just reduced the price on its entry-level EV to below A$30,000. The cheapest Toyota Corolla starts at $26,400, but that isn't a hybrid. The cheapest hybrid Corolla is $31,790. At some point this year, V2H (vehicle to house) charging will be enabled. Even at the lowest non-zero marginal tax rate, the cheapest BYD will cost just $20K, but will also be a house battery. A comparable Tesla Powerwall will set you back ~$25K. However, the bi-directional chargers are still pricey, though even adding that cost to your car still leaves you with big cost savings, especially when you consider how much cheaper EVs are to run than petrol vehicles. The point about this is that EV price competition continues, and EVs are now very good value, and will get better. Expect sales to rise fast.
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| Recent months showing a pick-up, but still down on the 2023 peak |
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| Year-on-year sales growth is back above +30%, after a low of -27% |
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