The Labor opposition, policy analysts and the EV industry have criticised South Australia’s conservative Liberal-National government’s controversial new electric vehicle charge as “a big tax on not polluting”.
It comes as MG launches the lowest price electric vehicle on the market in Australia yet, a $40,000 SUV crossover, that is about $10,000 cheaper than its nearest rival, the Nissan Leaf.
SA Labor Opposition Leader Peter Malinauskas today announced his party’s clear opposition to Premier Steven Marshall’s plan, which would actively discourage people from buying electric cars and drive investment in electric vehicle infrastructure away from South Australia.
Electric Vehicle Council chief executive Behyad Jafari said that SA Labor’s clear position was invaluable for the future of the industry in Australia.
“SA Treasurer Rob Lucas says he’s confident other state governments will follow his strange position, but given he’s made South Australia the first jurisdiction on the planet to slap a special tax on electric cars he may have disastrously backed the wrong horse,” Mr Jafari said.
“But it pays to take nothing for granted when it comes to electric vehicle policy in Australia, so SA Labor’s clear position today is extremely welcome.
“Mr Malinauskas has shown his Labor colleagues across the country what a logical position on electric vehicles looks like in 2020, and I would assume others will follow suit soon.
Noah Schultz-Byard, South Australian director at the Australia Institute, said the decision in South Australia, the first in the nation to introduce such a charge, would only make it harder for people to go electric just as it was getting easier.
“Putting a tax on a car because it doesn’t produce any pollution is ridiculous.
“It’s like saying someone who gives up smoking no longer pays the tobacco excise, so they need to pay a penalty for having given up,” Mr Schultz-Byard said.
“People can make arguments for or against, but now is not the time when the upfront cost of an EV is still higher than a petrol car.
“Right now the cost of batteries that go into electric vehicles has been dropping steadily and is expected to drop in the years to come.
“Slapping a tax on that will only raise the barrier back up. This might scare a lot of people away from buying an electric vehicle, which is the opposite of what we want.”
The move was announced in the state budget where Mr Lucas explained the decision by saying it would make road use more equal.
Mr Lucas wouldn’t be drawn on the size of the charge but did say it was expected to raise $1m a year starting in July 2021 and that it would include both an upfront cost and an additional charge on distance travelled.
“Someone needs to pay for the road maintenance and upgrade, and it should be the people who are using the road,” Mr Lucas said.
Mr Jafari said his worry is that South Australia will set a precedent that will lock in bad policy across the country.
“Automotive companies simply won’t bring EVs to our market,” Mr Jafari said.
“South Australia has one of the lowest uptakes of EVs in the world and to now become the world’s first jurisdiction to provide a net tax or net disincentive is the wrong move.”
The decision came as a surprise given the state’s recent good work in the area.
South Australia has committed $18m to build nearly 200 new vehicle charging stations and only announced last week it would be transitioning the government fleet to electric.
Mr Jafari said, “South Australia has a net zero emissions target for 2050 and is aiming to halve their emissions by 2030.
“Most of their emissions comes from the transport sector,” he added.
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One Response
No doubt some sort of dodgey connection to the revolving door of the fossil fuel industry.