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NSW Government's reversal on EV incentives sparks controversy

The Bugle App

Donna Portland

22 September 2023, 12:30 AM

NSW Government's reversal on EV incentives sparks controversy

The NSW Labor Government has made an unexpected policy shift to electric vehicle (EV) incentives by scrapping the $3000 subsidy and reintroducing stamp duty for new buyers. This abrupt change threatens to disrupt the progress of EV adoption, worsen air quality in Sydney's west, and increase carbon emissions across the state, according to the Electric Vehicle Council (EVC).


This decision comes at a time when sales data demonstrates the positive impact of NSW's EV incentives. They successfully encouraged EV purchases in not only affluent areas of Sydney but also in regional NSW. Since the introduction of these rebates, sales have surged by 450 percent, and the prices of popular EV models have dropped by $8000.



The CEO of the Electric Vehicle Council, Behyad Jafari, was disappointed in the government's decision, labelling it a betrayal of the voters' trust. "I doubt the people who voted for this government thought they were voting to cut electric vehicle incentives to fund handouts to coal-fired power stations," Mr Jafari remarked.


"Labor supported these EV incentives when they were first introduced by the previous government and did not indicate any intention to reduce them before the election," Mr Jafari continued. He emphasised that the combination of NSW incentives and more affordable imported EVs had driven a substantial increase in EV adoption in Sydney's west and rural areas. However, the government's recent shift threatens to halt this momentum.


Mr Jafari pointed out the potential negative impact of these changes, particularly on less affluent families in western Sydney. With petrol prices soaring, the reintroduction of stamp duty for EVs instead of the planned road user charges in 2027 could make EVs less accessible to many.



Mr Jafari urged the NSW Parliament to reject these changes and preserve the benefits of the existing policy settings. He reminded everyone that NSW was making remarkable strides in EV adoption under the previous government, and the current policies had received support across the political spectrum.