The Climate Change Authority recently warned that electric vehicles (EV) will need to account for 50% of Australia’s new car sales over 10 years if the federal government’s emissions reduction targets are to be met.
Federal and state governments already provide substantial subsidies and incentives for EVs, which cost their budgets billions of dollars. Many of these subsidies are a reverse Robin Hood scenario as they effectively tax the poor to subsidise the rich.
As reported by Michael Read at The AFR, the cost of the Fringe Benefits Tax (FBT) exemption for EVs has “blown out thirteenfold, and the benefits are disproportionately flowing to workers earning over $150,000, who make up almost half of all recipients”.
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