The Australian Government has taken a significant step towards promoting electric vehicle adoption with a groundbreaking $150 million initiative through the Clean Energy Finance Corporation (CEFC).
Under the new programme, eligible Australians can access low-interest loans for electric vehicles priced up to $55,000, with interest rates sitting up to 5 percentage points below standard market rates. This could translate to savings of over $8,000 on a $40,000 loan over a seven-year term.
The initiative specifically targets workers earning under $100,000 annually and essential workers, including police officers, teachers, firefighters, and nurses. In a comprehensive approach to EV adoption, the loans also cover home charging equipment installation.
"MTAA commends the Government for its ongoing efforts to make low emission transport more accessible to Australians," said Matt Hobbs, CEO of MTAA. "This initiative will play a vital role in helping more Australians make the switch to EVs, which is essential for reducing emissions."
The programme is part of a broader strategy to stimulate EV uptake, which includes a $60 million automotive business EV charging infrastructure fund, FBT exemptions, and financial support for apprentices working on EVs. These measures are designed to support both consumers and the automotive industry through the transition to electric vehicles.
This programme aligns with the upcoming New Vehicle Efficiency Standard (NVES), set to commence on 1 January 2025. According to Hobbs, the government's approach combines both "carrot and stick" measures to effectively encourage EV adoption, with consumer incentives playing a crucial role in the transition to sustainable transport.
The initiative will also help build confidence in the EV marketplace by strengthening the residual value of these vehicles, benefiting both new and used EV markets. As the transition accelerates, the VACC emphasises the importance of equipping dealerships and independent repairers with the necessary resources and tools to effectively sell, service, and repair electric vehicles.
You can read the government announcement here: $150 million to make EVs more attainable to low-and-middle income Australians | Ministers