The NSW government’s decision to scrap the $3000 subsidy for new electric vehicles has been criticized as a backward policy that ignores the future of electric mobility. However, one Sydney-based company, the Good Car Company, has taken the lead by offering the same discount to EV buyers, rendering the government’s decision redundant.
The EV subsidy cut comes as part of the Minns government’s first budget, following in the footsteps of Victoria. This move marks a significant shift from NSW’s previous electric vehicle policy, and it also means the end of rebates for EV purchases and stamp duty exemptions. However, the government has committed to supporting the expansion of charging stations in regional NSW.
The decision to scrap the subsidy was justified as a cost-saving measure and to eliminate what some consider middle-class welfare.
However, the Good Car Company argues that the subsidy is crucial for lower-income households, as it can provide significant financial benefits over a five-year period. Co-founder Anthony Broese van Groenou believes that the government’s decision was a poor business move.
This decision has the potential to portray the Australian government as a follower rather than a leader in the transition to electric vehicles.
Despite the increasing demand for EVs, Australian car manufacturers still offer limited choices to consumers while more affordable Chinese EVs dominate the Asian market. The local car industry is campaigning to delay the shift to EVs, hindering Australia’s climate change plans and potentially leaving the country with weak carbon emission rules.
With a growing consensus on the need to transition from petrol and diesel to EVs, federal and state governments should be promoting and facilitating this change. However, the NSW budget decision ignores the fact that until EVs become more affordable, people will be hesitant to purchase them.
