Scott Morrison once claimed electric vehicles could end the weekend, but the Prime Minister changed his mind this week when he announced the Australian government’s new EV policy.
While the strategy may not do much to get people into electric vehicles, it is the beginning of a shift as state and territory governments are already incentivizing getting more people into electric vehicles.
For many looking to give up their gasoline or diesel car, the upfront cost of a new electric vehicle remains the biggest hurdle – although that is changing rapidly.
What is available and for how much?
Chinese automaker BYD plans to launch an EV hatchback that will sell for $ 35,000 but under the brands currently sold in Australia – Nissan, Renault, Tesla, BMW, Audi, Mercedes-Benz, Hyundai, Jaguar, MG, Mini – the most affordable are the MG ZS EV for $ 44,990 and the Nissan Leaf for $ 53,190.
This is roughly the same price as the Harley Davidson LiveWire electric bike for $ 49,995, but a fraction of the luxury Porsche Taycan Turbo S at $ 373,670.
Those looking for a real bargain can try their hand at the used market, where it’s possible to get a used Nissan Leaf for around $ 15,000 – but be sure to check the battery before buying as it will run out over time become efficient.
Why are they so expensive?
Unfortunately, the choice of electric vehicles is still limited. Those who live in the UK may have over 130 models to choose from, but Australians are limited to just 31 – a problem made worse by the limited supply.
A recent CommBank survey found that new car buyers were up 31% in October compared to the same period last year, but consumers found it difficult to actually get hold of a new car.
This is partly due to a global shortage of computer chips and global supply chain problems. Since every modern car engine contains at least one computer, the lack of chips makes it difficult to build, while shipping the components and the finished car is more difficult.
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Here in Australia, the limited choice has been made worse by the lack of clear government policy, which means that global automakers simply don’t give the country a priority.
While companies like Volkswagen expect to sell 400,000 electric vehicles this year, none will be in Australia, partly out of concerns that proposals for a new EV usage fee could discourage people from driving electric.
For those who still can’t afford to pay the high upfront cost, some providers like AGL are now offering subscription EV models that allow people to effectively rent an electric vehicle.
While the up-front costs of a new electric vehicle are high, these costs are offset over the life of the vehicle. EV drivers obviously don’t have to pay for gasoline, while repair costs are lower as electric cars require fewer parts.
When AGL calculated the difference using ABS statistics from 2019, it found that the fuel bill for a gasoline-powered car was $ 2,069 per year, while the cost of charging an electric vehicle was $ 723.
These numbers can vary by state based on electricity bills, the price of gasoline, and a person’s access to a rooftop solar array at home, which is still the cheapest way to top up.
What help can I get?
To help with the high up-front costs, states and territories introduce incentives to help, even if no two states are alike.
Electric vehicle owners in New South Wales get by far the best deal. Drivers can now claim up to $ 78,000 stamp duty reimbursed on new and used vehicle purchases, while discounts of $ 3,000 are offered on the first 25,000 electric vehicles sold in the state.
Second is drivers in the ACT who will not pay stamp duty or registration for two years, while the area government offers 15,000 interest-free loans for new purchases.
South Australia and Victoria offer similar discounts of $ 3,000 to New South Wales, while drivers in Tasmania and South Australia receive stamp duty and registration fee exemptions.
Western Australia, Queensland, Tasmania and Northern Territory do not currently offer direct purchase incentives, but every state except WA offers exemptions or discounts on registration or stamp taxes.
Where can I top up?
Charging an EV requires a plug-in cable, with the basic equipment of most models typically taking around eight to twelve hours to charge a battery.
The set-up costs for these systems add to the initial cost, although there are specialized companies such as JET Charge that can perform home installations.
Anyone caught on the go can access a growing network of fast charging stations from companies such as ChargeFox. Your stations can add 400km of range in 15 minutes and can be found through their app.
New South Wales and South Australia plan to introduce a fee but have announced they will postpone the introduction until 2027 in order to bring electric vehicles to use in Australia, but Victoria has already started collecting the usage fee on July 1 this year.
With other countries like Norway already planning to stop gasoline vehicle sales as early as 2025, similar bans may resume elsewhere in the next decade, so the decision to switch is more a matter of when than if.
