NSW government’s termination of electric vehicle subsidies rebuked by national body for going against public’s ‘best interests’

NSW government’s termination of electric vehicle subsidies rebuked by national body for going against public’s ‘best interests’
  • PublishedSeptember 16, 2023

The Electric Vehicle Council (EVC) has criticised the New South Wales government’s forthcoming decision to abandon rebates on EV purchases, arguing the move will worsen income inequality across Sydney.

Ahead of the NSW state budget announcement on Tuesday, reports revealed Treasurer Daniel Mookhey is set to terminate the current $3,000 incentive for drivers who buy new electric vehicles and funnel the savings into building more base infrastructure.

From January 1 next year, stamp duty will also be reintroduced for new EV purchases along with rebate removals, with the government forecasting $527 million in savings from the move, a large portion of which will then be invested into constructing charging stations in regional areas and for those without access to home charging like apartment dwellers and renters.

Mr Mookhey says the changes will help better distribute government spending benefits across a broader demographic base, but the EVC reasons it will only do the opposite.

“The NSW incentives, combined with more affordable EV imports, were just starting to drive significant uptake in Sydney’s west and the state’s regions,” EVC chief executive Behyad Jafari said in a statement.

state’s regions,” EVC chief executive Behyad Jafari said in a statement.

For NSW, since the rebates were launched, sales rose by 450 per cent and the most popular EV models fell in price by $8,000.

However, Treasurer Mookhey said the incentivisation of EVs came with a risk of driving up retail costs and increased profits to manufacturers, SMH reported.

The incentives were first introduced by the former state government in 2021, which Labor endorsed in this year’s state election.

The EVC has called for the NSW Parliament to reject the changes as it risked “broken faith with voters”.

“The Opposition, the Greens and the others in the NSW Upper House should defend the state’s interests and oppose the government’s short-sighted backflip,” Mr Jafari said.

SOURCE: SKYNEWS

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