The Australian electric vehicle (EV) industry is launching a concerted effort to persuade the federal government to maintain the Electric Car Discount. Spearheaded by the National Automotive Leasing and Salary Packaging Association (NALSPA), a coalition of industry bodies and manufacturers has initiated a nationwide advertising campaign titled “Keep the EV Tax Discount”.
Campaign Highlights Impact and Affordability
The campaign directly addresses the federal government’s ongoing review of the Electric Car Discount, which was announced in December. It questions the Labor party’s stated commitment to increasing EV adoption and alleviating cost-of-living pressures for families, by highlighting the potential removal of a policy that serves both objectives.
NALSPA, representing Australia’s peak body for novated leasing, is leading the charge. The “Keep the EV Tax Discount” campaign is supported by a broad spectrum of organizations, including Autoleague, Automotive Leasing, EV Dealer Group, Electric Vehicle Council, First Nations Finance, Pepper Money, Rewiring Australia, and Unisson Disability. Prominent electric car manufacturers such as BYD, GWM, Polestar, and Tesla have also lent their backing.
The campaign aims to inform the public and government about the discount’s crucial role in making EVs more accessible and affordable for everyday Australians. A key message emphasizes that the policy demonstrably supports cost-of-living relief and promotes cleaner transportation.
Discount’s Role in Driving EV Uptake
Introduced in 2022, the Electric Car Discount was initially designed to assist approximately 5,000 Australians in purchasing an EV. However, its impact has significantly exceeded initial projections, becoming a primary catalyst for EV adoption across the country. The policy effectively removes the fringe benefits tax on eligible electric vehicles, thereby reducing the overall cost of ownership.
Data from a September 2025 study indicates that the tax discount played a pivotal role in introducing over 105,000 new EVs onto Australian roads between 2022 and 2024. This surge in adoption underscores the discount’s effectiveness as an incentive.
Rohan Martin, NALSPA chief executive, stated, “The federal Government is reviewing the EV Discount, and working Australians deserve to know what’s at stake.” He further emphasized the policy’s success, noting, “We also want to remind the federal government how effective this policy is in driving EV uptake and reducing costs for everyday working Australians.”
Addressing Barriers to EV Adoption
The legislative requirement for a review of the Electric Car Discount was announced in December, prompting the industry’s proactive campaign. Martin highlighted the personal impact of the discount, stating, “Tens of thousands of everyday working Australians, many of whom are living in the outer suburbs, have made the switch to EVs with the help of this Discount and they wouldn’t have without it.”
He added that if Australia is serious about emissions reduction and making commutes more affordable, continued support for EV uptake is essential. “If Australia is serious about reducing emissions and making the commute more affordable, then we have to continue helping workers and their families address the real barriers to EV uptake.”
The campaign argues that the EV Discount is one of Australia’s most successful clean transport policies. It is credited with facilitating the transition to electric vehicles, both new and second-hand, for a growing number of Australian families. This shift is contributing to reduced emissions and easing household running costs during a period of economic pressure.
Industry’s Plea to Government
The industry’s core message is that any decision regarding the EV Discount will have tangible consequences for Australian workers and families. Those who have already benefited from the policy, as well as many more potential adopters, could be impacted.
“The EV Discount is one of the most effective, practical and popular clean transport policies Australia ever has had. The EV Discount is driving real change: putting more new and second-hand electric vehicles in the driveways of Australian families, reducing emissions, and easing household running costs at a time when every dollar matters,” Martin asserted.
The coalition’s unified call to action is clear: “Any decision made on the EV Discount affects everyday Australians – the workers who are benefiting right now and the many more who could miss out. We are calling on the federal Government to keep the EV Discount.” The campaign seeks to ensure the government fully considers the widespread benefits and public support for the discount before making its final decision.