adopt a different approach to reach a carbon neutrality in the automotive sector. In its new strategy for zero emissions vehicles, the federal government revealed that it intends encourage more people to buy electric vehicles by partnering with the private sector, in order to fund 50,000 charging stations in Australian homes.
The Future Fuels strategy, which was released by Canberra on Monday (8 November), does not include any tax incentives, subsidies or minimum fuel emission standards which would encourage the use of EVs across the Trans-Tasman nation. According to Prime Minister Scott Morrison, it should be the customer who leads the pace of change to electric vehicles, and while he has no problem with EVs, he is opposed to the government telling people what to do.
“We will not be forcing Australians out of the car they want to drive or penalising those who can least afford it through bans or taxes,” the Australian leader said. “Instead, the strategy will work to drive down the cost of low and zero-emission vehicles and enhance consumer choice.”
Accordingly, Canberra intends to expand the Future Fuels Fund to a total of $250 million of taxpayers’ funds, which is expected to create about 2,600 new jobs over a period of three years. The government noted that the investment will ensure companies do not concentrate charging stations in inner-city areas, so that people in outer suburban or rural areas will not be dissuaded from purchasing an EV.
“Reducing the total cost of ownership through subsidies would not represent value for the taxpayer, particularly as industry is rapidly working through technological developments to make battery electric vehicles cheaper,” the new strategy read. Instead, it will align with Canberra’s ‘technology not taxes’ mantra, which aims to ensure the infrastructure is in place to support consumers in their transition to EVs.
