This morning Australia’s federal Labor party, announced a new policy on Climate Change. Under this policy, electric vehicles would become cheaper, addressing one of the biggest barriers to adoption, the up front price tag.
If Labor win the next election (due some time in 2022), they will exempt EVs from charges like import taxes and fringe benefits tax. This has the potential to make car around the A$50,000 mark, around A$2,000 cheaper, but does that go far enough?
While this proposal from Labor is a great step forward from the Coalition’s hostile response to Electric Vehicles, many other countries offer tax credit or rebate programs of up between $5,000 and 10,000. The question is, would you buy a car at $48,000 instead of $50,000? For most I expect this will not be a make or break decision. On the flip side, if you were to apply a 5 – 10 thousand dollar discount on something like the MG ZS EV, you’d see the price fall as low as $33,990, a price point many Australian’s buy at.
The opposition has stipulated that the plan would be designed around non-luxury vehicles, setting the price tag at vehicles less than A$72,565. Interestingly, in Victoria at least, Tesla’s Model 3 SR+ would come in under that number, currently priced at A$72,262 drive away.
Generally speaking we’d be talking about cars like:
- MG ZS EV
- Hyndai Kona
- Nissan Leave (gen 2)
- Renault Zoe
- Tesla Model 3 SR+
Given the proposal would begin July 2022 there will hopefully be another few EVs on the market in this price bracket by then.
On top of the EV discounts, the Australian Labor Party is committing to install 400 “community batteries” in suburbs. That’s fairly vague, but we can assume that these batteries will form part of a virtual power plant, which captures energy from solar panels during the day, for distribution at night, making power more affordable. The location and supplier of these are yet to be determined, however Tesla’s MegaPack could be a good candidate, given their success in Australia to date.
It looks like these community batteries could be 500kWh in size, which could support up to 250 households. Assuming all 400 batteries were that same capacity, we’re talking about a combined resource that has 200,000kWh.
Shadow Minister for Climate Change and Energy, Chris Bowen was joined by the opposition leader, Anthony Albanese at a Nissan dealer in Western Sydney for the announcement.