| Media item | |
| | VIC pulls plug on EV subsidies | GoAuto News,
Sandringham
by John Mellor
| 14 Jun 2023 | | General News - Page 24 - 454 words - ID 1870987228 - Photo: Yes - Type: News Item - Size: 319.00cm2 | |
As the state's finances sink lower, "climate-saving" EV initiative is switched off
THE Victorian government has decided to end its subsidy to buyers of zero emissions vehicles at the close of this financial year - in just shy of two week's time - as it scrambles to find savings to repair the state's parlous finances.
The subsidy was the key means the Victorian government was using to meet its target for half of all light vehicle sales in Victoria to be ZEVs by 2030.
The Victorian Automotive Chamber of Commerce (VACC) notified its dealer members of the change last week.
The chamber said it was advised that consumers who have ordered vehicles before the cut-off date will still be eligible for the subsidy with a delivery lead time of six months (or longer depending on circumstance) for the subsidy to be paid.
The subsidy of $3000 was only available from participating car retailers and applied to EVs, but not to hybrids, bought on or after May 2, 2021.
It was only available on vehicles under the price threshold of $68,740 and only to Victorian licence holders and on vehicles registered in Victoria.
The closing of the program means that Victoria is the only state in Australia with no EV price subsidy program.
The move effectively means that Victoria will not be able to meet its zero emissions vehicle goals although the government said that it was closing the program because "it had worked".
In a statement on its website the government said: "The ZEV Subsidy Program was designed to encourage uptake of ZEVs.
In the first year the subsidy was available, Victorian ZEV sales rose by 310 per cent.
"Now, in 2023, 6.6 per cent of all vehicles sold in Victoria are ZEVs up from 1.8 per cent in 2021.
"The Victorian government has had to make some tough budget decisions this year and unfortunately not all programs have been able to continue. Given the growth in demand for ZEVs over the last 12 months, applications for subsidies will close at 6pm 30 June 2023.
Spring Street said: "The ZEV subsidy reduces the upfront cost of a new zero emissions vehicle to get more Victorians driving the future of transport sooner.
"ZEVs are an important step in Victoria's transition to a clean energy future. They do not use petroleum fuels and therefore do not emit greenhouse gas emissions from the tailpipe.
But the Liberal shadow minister for climate change, James Newbury, said in a statement that the minister for climate action, Lily D'Ambrosio, has confirmed that Labor would be unable to achieve its commitment of at least 50 per cent of all new light vehicle sales to be electric by 2030.
Caption Text:
James Newbury
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