AEVA calls for a far-reaching EV policy framework

AEVA has lodged a response to the Federal Government's Consultation Paper on the National EV Strategy.

This response has called for a nationally consistent framework for EV policies. Among other measures, we have called for that framework to include vehicle emission standards, a ban on new ICE vehicles by 2035, immediate disincentives for ICE vehicles, reduced obstacles to the import of used EVs, and investment in the expansion of electric rail for passenger and freight services

Our full submission (22 pages) can be found on our website here.

Here is our Executive Summary:

Objectives

  • The Government’s highest priority objective should be to reduce greenhouse gas emissions in the transport sector.
  • The next priority objective should be to substantially reduce Australia’s reliance on imported fuels.

Policy framework

  • The Government should work with the States and Territories to establish a nationally consistent framework for EV policy settings.
  • This framework should include a decision to cease the sale and registration of new Internal Combustion Engine (ICE) vehicles in all States and Territories, by 2035.
  • The sale of new ICE vehicles should be discouraged in the interim.
  • Incentives should not be extended to conventional hybrid and plug-in hybrid (PHEV) vehicles.
  • The framework must take account of passenger vehicles other than cars – such as motorcycles, bicycles and scooters.
  • Hydrogen has no practical role for light vehicles and has a very limited role for heavy vehicles. Financing of H2 infrastructure should be decoupled from this EV Strategy.
  • To ensure that emission reductions are achieved across all land transport sectors, the framework must include substantive investments in electric mass transit, electric heavy haulage, electric light and heavy rail, and electric buses and trucks.

Emission standards

  • The framework should include the introduction of mandatory vehicle emissions standards.
  • These standards should be tightened annually, with stringency and timing that, at a minimum, matches major markets such as Europe or USA.
  • In applying these standards, vehicle categories should be sufficiently broad so that weaker standards are not applied to SUVs or light commercial vehicles.
  • These standards should also apply to heavy vehicles.

Other measures

  • The Fringe Benefits Tax (FBT) exemption should be widened to include vehicles with earlier build dates.
  • The exemption from the 5% import duty should be extended to second-hand vehicles.
  • To support the uptake of more affordable EVs, current impediments to the importation of second-hand EVs should be removed.
  • The importation of electric motorcycles and mopeds should be less onerous.
  • State electricity regulatory legislation should be harmonised, so that working on EVs is excluded from the definition of ‘electrical work’, but that a specific level of competency be expected for those doing such work.
  • Vocational training in the automotive sector should be expanded and resourced appropriately.

Charging infrastructure

  • Grants for public rapid charging infrastructure should be planned with State/Territory and Local Governments.
  • These grants should be tied to an obligation to achieve a defined level of availability and rapid response to outages.

Road User Charge

  • Once EVs reach a defined proportion of registered vehicles, a federally collected, state-administered, universal Road User Charge should be applied to all road vehicles (EV and ICE). It should be introduced at a modest rate and should increase only in line with falls in revenue from fuel excise.
  • The Road User Charge should be based on vehicle mass as well as distance travelled.
  • Fuel excise should be retained for ICE vehicles, in addition to a Road User Charge, as a disincentive.

Manufacturing opportunities

  • There are opportunities for small and medium size enterprises to play a role in services such as converting ICE vehicles to EVs, and in refreshing batteries in used EVs, as part of a “value chain” which includes domestic battery manufacture.
  • The Government should examine incentives and the provision of start-up financing for local assembly and manufacture of whole EVs in Australia.