The announcement that the Clean Energy Finance Corporation will now subsidise electric vehicle purchases raises questions as to how much more taxpayer cash will be required to meet the Government’s EV targets.
The Albanese Government, through the CEFC, will now offer an interest rate discount of around $1,900 for electric vehicles priced below the luxury car tax threshold as a desperate attempt to meet their emission reduction targets.
With almost 60 models of EVs available on the Australian market that are priced under $60,000 why is it necessary to provide more taxpayer dollars to encourage people to buy an EV under the luxury car tax threshold of $91,378.
The CEFC and the Government also need to explain why this announcement of the subsidy will only apply to purchases of vehicles sold by Hyundai and Kia.
This announcement on top of the Fringe Benefits Tax exemption will put further costs onto the Budget and therefore mean more taxpayer dollars will be pumped into encouraging people to buy EVs.
The Productivity Commission has urged the Government to axe the Fringe Benefits Tax exemption for electric vehicles warning that the costs have skyrocketed from the Government’s original projections.
The FBT exemption and the import tariff exemption for EVs is estimated to cost the Budget $23 billion over the next decade.
The Government should come clean on what is the total cost of all its climate programs.
The Capacity Investment Scheme, the Hydrogen Headstart Program, the Cheaper Home Batteries Program and a raft of others are using taxpayers’ money in a vain attempt by Australia’s part-time Energy Minister to meet his climate targets.
ENDS
