Everything you need to know about the government’s new electric vehicle strategy

The Federal Government today outlined a range of new policies to increase the uptake of electric vehicles in Australia. Here’s why it matters to you.

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The Federal Government today unveiled its ‘Future Fuels’ package, as part of a nationalised bid to increase the uptake of electric vehicles in Australia.

So how exactly will it work, does it go far enough, and what could it mean for you?

Effectively, the announcement outlines a range of targets, industry expectations, and guiding principles for the next decade of automotive policy.

According to the Prime Minster’s Office, 1.7 million zero-emission vehicles will be registered for local roads by 2030 (up from fewer than 30,000 currently) and more than 80 per cent of Australians will have direct access to necessary fast charging infrastructure.

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Approximately $AU250 million – representing less than 2.5 per cent of the Australian fossil fuel subsidies dished out during the 2020/21 financial year – has been earmarked to make this happen, with the expectation that private enterprise will contribute a similar figure before the end of this decade.

However, none of that money will go towards vehicle rebates or tax incentives.

The government has also ruled out the introduction of new fuel efficiency standards, which some automotive manufacturers claim are necessary to justify importing limited electric vehicle stock to Australian showrooms.

Instead, investments in charging infrastructure and grid integration have taken priority; approximately 400 businesses, 1000 public sites, and 50,000 households will be fitted with fast chargers under the scheme.

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As previously reported by Drive, a new electric vehicle infrastructure network is currently being rolled-out across Australian fuel stations and shopping centres as a direct result of the ‘Future Fuels’ investment strategy. This program is also expected to add 2600 new jobs to the national economy.

The Federal Government – which last election campaigned on the claim electric vehicles would “end the weekend” – now says its policies will make zero-emission technology more accessible for every day Australians, without distorting the market or depriving individuals of personal choice.

“Our plan promised technology not taxes, choices not mandates, and driving down the cost of new technologies,” the Prime Minister said in an official media statement.

“Australians love their family sedan, farmers rely on their trusted ute and our economy counts on trucks and trains to deliver goods from coast to coast … We will not be forcing Australians out of the car they want to drive or penalising those who can least afford it through bans or taxes.”

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However, critics suggest the policy does not go far enough, is out of line with contemporary international norms, and won’t adequately prepare Australia for the near-ubiquitous electrification of road-registrable vehicles over the next two decades.

“What’s in [the ‘Future Fuels’ policy] is more or less correct, but it’s only covering five per cent of the issue,” Behyad Jafari, the CEO of Australia’s ‘Electric Vehicle Council,’ told Drive.

“They continue to say they’re not putting policies in place to give people choice, but what the industry has told them is the opposite is true – without these policies in place, Australians don’t get choice.”

While rebates have been shunned at the federal level, most Australian states and territories now offer some form of financial incentive for electric vehicle uptake. You can read in depth about each localised policy by clicking here.

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