Australian drivers could lose 3,000 to 5,000 Australian dollars ($2,095 to $3,493) in annual savings if the Liberal-National Coalition wins in 2028 and follows through on its plans to eliminate an electric vehicle tax break.
Here's what to know
The Electric Car Discount is the tax break the Coalition intends to abolish, Shadow Attorney-General Michaelia Cash said, according to The Driven.
The program exempts qualifying EVs priced at AU$89,332 ($62,488) or less from fringe benefits taxes.
The proposal is part of a package the Coalition says would cut spending by AU$31 billion ($21.7 billion) over four years beginning in 2028-29. Funding for the Australian Renewable Energy Agency would be reduced, and home battery rebates would end.
Parliamentary Budget Office modeling prepared for the Coalition estimated that immediately eliminating the EV exemption would save AU$2.1 billion ($1.5 billion) over the following three financial years. That estimate applies to an immediate rollback, not one beginning after the 2028 election, The Driven reported.
More background
According to the Electric Vehicle Council's midyear State of EVs report, sales from January through June totaled 103,716 battery-electric vehicles and 54,241 plug-in hybrids. Combined, those sales marked a 117% increase over the same period in 2025.
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EVs accounted for 25.8% of new car sales, bringing Australia's EV fleet to 612,000 by June. Buyers also had more options: 125 battery-electric models and 71 plug-in hybrids, according to The Driven.
The council's CEO, Julie Delvecchio, cited the EV Ownership Survey from March, noting that yearly fuel spending fell by over 60% for most EV drivers.
What's being done?
The federal government plans to narrow the discount.
It has committed to lowering the eligible vehicle price ceiling from AU$89,332 to AU$75,000 ($52,470), with further reductions planned for 2029.
Cash didn't commit to EV infrastructure when asked during an appearance on 7News. Labor environment and water minister Murray Watt, meanwhile, argued in favor of retaining the subsidy.
The Electric Vehicle Council has urged officials to retain the discount, arguing it makes EVs more affordable. Aman Gaur, who leads the organization's legal, policy, and advocacy work, told The Driven the program had enabled thousands of Australian suburban families to obtain EVs, with yearly savings reaching AU$3,000.
"Removing the discount now would only keep Australians hostage to expensive, imported petrol and diesel," he said.
Where can I learn more?
Vehicle prices and charging access also influence what Australian drivers pay to go electric.
• Australian power bills rose AU$1 annually to help fund curbside EV charging infrastructure.
• Ampol acquired 1,030 EV charging bays for AU$225 million.
• BYD's Atto 2 remained Australia's cheapest electric SUV, though competing models narrowed the gap.
• GWM's Ora 5 hatch could start under AU$30,000 as EV options expand.
• A Sydney commuter considering a used Bolt faced charging without a home plug.
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