According to NSW budget estimates, Australia’s most populous state is spending more than $630 million on its electric car plan, despite the fact that only 0.6 percent of Australians own one.
State Treasurer Matt Kean, who is well-known for his environmental activism, revealed on Tuesday that his government will spend an additional $38 million on its electric vehicle strategy, bringing the total investment to more than $500 million.
More charging outlets will be installed in streets, apartment complexes, and designated charging stations with the funds.
When it comes to electric vehicles, Australia lags behind the rest of the world, accounting for fewer than 1% of the million new automobiles sold each year.
Fully electric vehicles have a miniscule 0.6 percent market share in Australia.
The NSW government’s Electric Vehicle Strategy aims to raise that percentage to more than 50% by 2030-31.
Critics argue that the regulations mainly benefit the wealthy because electric automobiles, which start at $44,000, are out of reach for the average person.
However, proponents argue that investments should be made now to prepare for when electric cars become more affordable and popular.
Mike Cannon-Brookes, a software millionaire and sustainable energy investor, is one of the proponents of electric vehicle adoption.
He expressed his amazement earlier this month when he learned that the Moss Services Club in the southern highlands had a charging station.
He tweeted, “Kudos to the Moss Vale Services Club for providing a @NRMA double EV charger in the vehicle park.”
‘Charging my car at the RSL with the kids while eating schnitzel felt like a fresh future for Australia… one that was well related to our past.’
More charging stations, according to NSW Treasurer Matt Kean, will ‘enable more EV drivers to benefit from their lower operating costs and a cleaner, quieter, and more sustainable road network.’
‘On our major motorways, at regional destinations, apartment buildings, and on kerbsides in metropolitan regions with restricted off-street parking, you’ll never be far from a charger,’ he added.
Stamp duty exemptions for new and used electric vehicles valued up to $78,000 are part of the NSW government’s strategy.
Buyers are also exempt from up to $3,000 in fees that buyers of gasoline and diesel cars must pay.
They are getting back up to $5,540 from the taxpayers after a stamp duty exemption of $2,537.50 and a $3,000 refund.
The incentive was taken up more readily in affluent regions of Sydney’s north shore and north-west, according to One Nation’s NSW leader Mark Latham.
‘This demonstrates how foolish NSW Treasurer Matt Kean has become in believing that programs like this can save the earth,’ he told the Daily Mail Australia.
‘Even from these preliminary figures, the scheme’s inequality is evident. ‘This was always going to be a cross-subsidy from NSW’s poorer areas to the affluent regions.’
As more people switch to electric vehicles, less petrol will be purchased, and governments will lose revenue from fuel taxes.
To compensate, the NSW government will impose a 2.5 cents per km (indexed to CPI) road user tax on electric cars beginning July 1, 2027, or when EVs account for 30% of all new vehicle sales, whichever comes first.