Australian EV advocates urge government to retain salary sacrifice tax discount amid budget review
By Eve
Electric vehicle advocates are pressing the federal government to preserve the Electric Vehicle Discount, which allows workers to avoid paying thousands in tax when purchasing new EVs through salary sacrificing. The incentive is currently under review and may be abolished in the upcoming federal budget, despite EVs accounting for about 14 per cent of new car sales in Australia in 2025. Advocates argue the discount should remain, particularly as fuel prices surge nationally.
Why it matters: The potential removal of this tax incentive could slow EV adoption rates in Australia, directly affecting demand forecasts for charging infrastructure deployment. CPOs and network planners relying on continued EV uptake growth to justify site investments will need to monitor the budget outcome closely.