Advocacy groups are calling on governments to maintain and reintroduce incentives for electric vehicles (EVs), citing record-high petrol prices and ongoing global instability as critical reasons to accelerate the transition to cleaner transport. The push comes as fuel costs approach $4 a litre in some Australian locations, with international conflicts impacting global oil supplies.
Call for Sustained EV Support
Automotive industry representatives have urged policymakers to treat the adoption of electric vehicles as a matter of national security. They argue that reducing reliance on imported oil not only shields Australian households from volatile international markets but also bolsters the nation’s energy security and aids in meeting environmental targets, including those set for 2035.
This renewed advocacy follows a surge in EV sales in February, marking a record month for new electric car purchases. Simultaneously, the federal government is undertaking a review of the Electric Car Discount, a policy introduced in 2022 that offers tax relief on eligible EVs purchased through novated leases.
Discount’s Success and the Case for Retention
The Electric Car Discount has proven significantly more popular than initially projected, benefiting over 114,000 Australian motorists. Despite some arguments for its discontinuation, proponents highlight recent global events as evidence of its continued relevance.
Julie Delvecchio, Chief Executive of the Electric Vehicle Council, stated, “Every time there is a conflict in oil-producing regions, Australians pay the price.” She emphasized the vulnerability of Australian households to global shocks as long as the nation depends on imported oil.
“The latest spike underscores a simple truth: as long as Australia relies on imported oil, households remain exposed to global shocks beyond our control,” Ms. Delvecchio added. She believes that the discount plays a crucial role in making EVs more accessible and mitigating the impact of fluctuating fuel prices.
State Rebates Crucial for Household Savings
Beyond the federal tax cut, Ms. Delvecchio also advocated for state governments to reinstate purchase rebates for electric vehicles. She highlighted the significant cost savings EVs offer to households, estimating annual reductions of up to $3000, primarily from eliminating petrol expenses.
“Electric vehicles help families cut their transport costs by up to $3000 a year, and most of that saving comes from avoiding the cost of petrol, which is currently over $2 a litre,” she explained. “Supporting EV uptake is not just climate policy or industry policy, it’s national security policy.”
Review Process and National Stockpiles
Submissions for the review of the Electric Car Discount concluded on February 6, with recommendations anticipated in 2027. This review occurs against a backdrop of national energy security concerns. Energy Minister Chris Bowen confirmed that Australia currently holds approximately 36 days’ worth of petrol and 34 days’ worth of diesel in its national stockpile.
The retention of tax cuts for electric cars is seen by industry leaders as a vital measure to not only extend these fuel reserves but also to lower carbon emissions across the transport sector.
Broader Economic and Environmental Benefits
Rohan Martin, Chief Executive of the National Automotive Leasing and Salary Packaging Association, commented on the broader implications of supporting EV adoption.
“Helping more Australians afford cleaner, cheaper-to-run cars makes sense,” Mr. Martin said. “More EVs are in the national and household interest.”
The increasing popularity of electric vehicles is reflected in recent sales data. In February, EVs constituted 11.8 per cent of all new car purchases, a significant increase from 5.9 per cent recorded in the same period in 2025. This upward trend, supported by government incentives, suggests a growing consumer appetite for electric mobility, driven by both economic considerations and environmental awareness.
The automotive industry’s unified call for sustained government support underscores the strategic importance of electric vehicles in navigating current economic challenges and achieving long-term sustainability goals.