The likelihood that Australia will move towards a more electric vehicle future is inevitable. As the world looks to lowering emissions, electric vehicle adoption is a significant component of most countries' plan to reduce their contribution to greenhouse gas output.
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Australia's situation is a bit different.
The transport industry is Australia's third-largest source of greenhouse gasses, responsible for 17.5 per cent and 60 per cent of this comes from cars.
This brings us to electric vehicles. Electric vehicle adoption is touted as an important component of most countries' emissions reduction policy. However, EV sales represent less than 1 per cent of Australia's new car sales per year. This starkly contrasts with a recent survey by the RACT which stated that 81 per cent of Tasmanians would consider buying an electric vehicle if they were available.
Compare this to the UK and Norway, where EVs represent 11.3 per cent and 74.8 per cent of new car sales respectively. The problem Australia is experiencing with EV uptake is their availability and their affordability.
The major car manufacturers have seen where the future market lies and have responded by announcing more production targets for EVs. With the established plans for European countries to halt sales of new ICE (Internal Combustion Engine) vehicles, car manufacturers have little choice but to aim for this large lucrative market.
But where does this leave Australia? EV models that are available to Australians are far behind. There are no new model EVs under $40,000 and only five models under $60,000 available for Australians.
Once again, compare this to the UK, where there are 24 under $60,000 and eight models cheaper than Australia's cheapest model. In Australia, we have access to about 30 electric vehicle models in total, in the UK they have access to 130.
The reason this situation exists is that, unlike most other advanced economy nations, our federal government have ruled out providing incentives to help Australians purchase new EVs. Without incentives, EVs are a lot more expensive compared to petrol cars, effectively making them akin to luxury purchases.
This has created a situation where there is a divide between people who can afford an EV and people who are left to purchase low quality petrol cars.
Consider the potential savings in running costs between EVs and petrol cars. Overall, EVs are around 70 per cent cheaper to power than their petrol counterparts.
As we watch fuel prices increase, the divide becomes ever more apparent. EVs run at an equivalent to 0.33 cents per litre, potentially saving the average Australian driver $1600 each year in fuel costs and if you have a roof top solar storage capability, your fuel could potentially be free.
Imagine having an extra $1600 every year just by changing your car model. Imagine fully filling your car for prices ranging from $8 - $40. Well, for most Australians this decision is out of their hands.
Labor has committed to ensuring we are on track for the inevitable coming of EVs by proposing an Electric Car Discount. This policy will exempt many EVs from import tariffs and the fringe benefit tax, specifically for electric cars below the luxury car tax threshold. This will stimulate car manufacturers to see the Australian market as a viable place to sell their newer models and will halt Australia's backwards slide. As confidence in the market grows, the availability of EV models will continue to grow, ensuring affordable options in the future.
The Morrison government has lied on this issue from the beginning. Scott Morrison said that EVs would "end the weekend," deliberately scaring people and creating division. This leaves a lot of people unsure of what the future holds. And there are a lot of questions Morrison will not address.
What do I need to consider when buying a petrol car? Will mechanics need to upskill or change their services offered? With greater access to home charging ports, what does this mean for service stations or the electricity grid? Can we see electric vehicle component manufacturing?
Could we even return to car production itself? Will petrol prices come down or go up with high EV take up? What about classic cars, will they be worthless if fuel is too expensive? What happens if you don't have a garage and park on the street, how will you recharge an EV?
Australians deserve to have reassurance of their future and answers to these questions now. Australians are ready for EVs, yet the Morrison government are purposely anchoring us to older technology. The Australian people deserve a choice, they don't have one with the Morrison government.
What do you think? Send us a letter to the editor:
- Helen Polley is a federal Labor senator for Tasmania
