SA Electric Vehicle Levy Amendment Bill a boon for EV buyers

The Federal Chamber of Automotive Industries (FCAI) has supported the new Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021, passed in South Australian Parliament as of Friday 29 October 2021.

The Bill will feature a $22.7 million package of support that FCAI Chief Executive Tony Weber believes will be key to incentivising electric vehicle uptake in South Australia.

“This Bill will set the course for the continued growth of electric vehicles in South Australia through continued infrastructure investment, tax relief and consumer incentives”, said Weber.

“The South Australian Government has recognised the shift in consumer preferences towards EVs and has introduced policies to fuel this growth.”

The package builds on the $18.3 million Electric Vehicle Action Plan announced as part of the 2020-21 State Budget and will provide a three-year registration fee exemption for electric vehicles purchased prior to 30 June 2025.

Additionally, a $3,000 subsidy is on the table for the first 7,000 battery-electric vehicles purchased.

A tariff reduction, in addition to the purchase subsidy will be welcome news for those already in the Electric Vehicle market and for those contemplating their first EV purchase.

“The relief from State taxes and charges in addition to the purchasing subsidy provides EV buyers with what is extremely low-cost mobility for the first three years of ownership,” said Weber.

The new Bill also features a commitment to introduce a road user charge (RUC) for electric vehicles from 2027 onwards. The move aligns with the Chamber’s position of scrapping inefficient and antiquated taxes and charges such as the luxury car tax and vehicle registration.

The FCAI will continue to monitor developments and push for similar initiatives across the rest of the country.

“We look forward to working alongside all States and territories to bring broad-based, fleet-wide road user charge schemes to reality,” said Weber.

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