Pragmatic Policy Group and Magenta Advisory were commissioned by NALSPA in partnership with the Electric Vehicle Council and the Australian Finance Industry Association – to assess the wider benefits of the Electric Car Discount (EV FBT Exemption) in Australia. This is the first time these three national member-based peak bodies have partnered.
The research was commissioned in response to the Productivity Commission’s draft report “Investing in cheaper, cleaner energy and the net zero transformation”.
Our analysis shows the policy is driving EV uptake, cutting transport emissions, building the nation’s second-hand EV market, and delivering significant economic, health, and environmental benefits.
Key findings include:
- 105,500 additional new EVs are already on the road thanks to the Discount.
- Every $1 spent via the discount delivers >$2 in economic, health and environmental benefits expected to rise to $3 by 2030.
- Extending the current scheme for BEVs and reinstating it for PHEVs until 2035 could halve vehicle emissions compared to ending it sooner.
- If extended to 2035: 5M new BEVs, 200K PHEVs, 870K used EVs would be on the roads.
- The Discount will help drive nearly $190M of charging investment in 2025 and $114M in 2035; without it, funding would drop by 40%, slowing the rollout of chargers.
- Strongest EV uptake is in the outer suburbs of Melbourne, Sydney and Brisbane – helping everyday working Australians afford the switch
- Proven global approach – every country with strong EV uptake pairs demand and supply-side incentives.
The work and findings can be found below.
Press Release
“Modelling shows Electric Car Discount could halve vehicle emissions if continued to 2035”
Media coverage of our report
“Australia can hit climate targets while slashing household bills by leaning in to electric vehicle incentives”
