NSW Govt urged to retain EV rebate

The Motor Traders’ Association of NSW (MTA NSW) is urging the NSW Government to retain its EV rebate scheme in order to help support industry transition, facilitate consumer adoption and contribute to a more sustainable automotive future for New South Wales.

From 1 September 2021, the NSW Government has offered $3000 rebates on purchases on the first 25,000 new battery electric and hydrogen fuel cell vehicles with a dutiable value of less than $68,750.

MTA NSW warned that any proposal to remove the EV rebate would be premature given the scheme is nascent and hasn’t had the chance to play out fully.

“The mixed messaging resulting from any proposed changes to the current EV rebate scheme could have far-reaching implications for the community, market dynamics and the automotive industry at large,” said Collin Jennings, Head of Government Relations and Advocacy at MTA NSW.

The number of electric passenger vehicles sold year-to-date in July 2023 rose from 2324 to 5544, underscoring the increasing popularity of EVs, according to the latest figures from the Federal Chamber of Automotive Industries’ VFACTS report. Moreover, electric SUVs experienced a significant leap, growing from 1084 YTD in July 2022 to 10,932 YTD in July 2023.

“The rebate scheme, while relatively new, has already demonstrated its positive impact on the sales of electric vehicles in both NSW and Australia.

“As the original engine manufacturers (OEMs) and importers work hard to reduce the costs of electric vehicles, the existing rebate will serve as an important mechanism to bring forth the next wave of adoption and propel electric vehicles into the mainstream,” Jennings said.

MTA NSW is advocating for the state government to make EVs more affordable to a wider range of people, especially as cheaper electric vehicle models make their way into the market in the short to medium term.

The industry body emphasised that the policy measures of state and federal governments should be clear and aligned to ensure a successful electric vehicle transition. Mixed messages would create confusion among stakeholders and undermine the collective efforts of the auto industry, which has been working hard to meet demands by investing millions of dollars in training and equipment, the organisation said.

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