Kylea Tink (North Sydney, Independent) Share this | Hansard source

I rise today to speak to the Treasury Laws Amendment (Electric Car Discount) Bill 2022. The time for climate action is now, and I believe we should be pulling all levers available to ensure a rapid and efficient transition to a net zero economy. Every aspect of our economy must contribute to Australia's target of a 43 per cent reduction in emissions by 2030 to help get us on a trajectory to no new fossil-fuel vehicles by 2035. Electric vehicles are an important step towards meeting our climate ambitions and reducing the growing contribution from the transport sector, which currently accounts for 16 per cent of Australia's greenhouse gas emissions, with light vehicles alone accounting for 10 per cent.

The truth is that Australia has fallen far behind our international peers when it comes to EV use, with one of the lowest rates of adoption of electric vehicles among the OECD countries. Having said that, however, it bears reflecting on whether this outcome is a true reflection of consumer desire or sentiment, or whether it is a reflection of and an outcome that is a direct consequence of a lack of appropriate federal government leadership over the past decade.

Very few people in Australia can currently access an EV, even if they have the financial resources to do so. At this point in time, there are only 10 electric and plug-in hybrid cars on the domestic market that are selling for less than $60,000. A key barrier to increasing the number of makes and models of cars for people in our country is that our market is one of the last markets in the world where manufacturers can literally sell their least efficient vehicles, powered by some of the dirtiest fuels, and one where manufacturers currently only supply a handful of EV models at high prices, creating a vicious circle of low supply. A key barrier to increasing the number of makes and models of cars for people in our country is that our market is one of the last markets in the world where manufacturers can literally sell their least efficient vehicles powered by some of the dirtiest fuel, with manufacturers currently only supplying a handful of EV models at high prices, creating a vicious circle of low supply.

The bill we are debating today aims to help ensure and encourage greater uptake of electric vehicles and reduce our transport emissions as part of the government's broader climate agenda. By reducing the upfront costs and ownership costs of electric vehicles, the bill is addressing a significant barrier to buying them. As an outspoken advocate for faster, cleaner transport for all, while I support the intention of this bill, I think there are some improvements that could be made to it to ensure the opportunity and benefit from this reform is available more equitably across Australia.

To achieve faster, cleaner transport for all, it is imperative we do two things. We need to increase the volume of electric vehicles and ensure that the incentives and infrastructure are there to accelerate the uptake of the available EVs. In this context, the bill currently drafted allows second-hand cars manufactured after 1 July 2022 to be eligible for the fringe benefits tax exemption. Given this, while the bill as it stands will eventually lead to lower priced second-hand electric vehicles for Australian consumers, the process of building that second-hand market will have unnecessarily been delayed by three to four years. With three out of every four vehicles bought in Australia every year being second-hand and in the face of the climate challenge we are facing, we can and must do better.

I will be moving an amendment to the bill that will extend the FBT exemption to imported second-hand vehicles that meet two main criteria. Firstly, my amendment would cover second-hand cars that were manufactured on or after 1 January 2020. This ensures the technology is of the highest quality and ensures the second-hand vehicle will comply with relevant Australian safety standards, as in force at the time, which is currently an ANCAP five star rating. Secondly, my amendment stipulates that second-hand cars are imported into Australia. This ensures we are growing the pool of available EVs in the Australian market. Making a higher number of EVs available will significantly accelerate the uptake of EVs at a much faster rate than the government's proposed three- to four-year time frame. The reality is that the stock of low mileage second-hand EVs internationally is sizeable, and Australians are currently missing out. In Japan alone, there are up to 20,000 second-hand EVs available per annum and up to 150,000 vehicles from the UK. An increase in the supply of affordable second-hand vehicles could be immediate if this bill were extended to include the FBT exemption to imported second-hand cars. It would also increase the type, variety and quality of models available in Australia, increasing employer and employee and, ultimately, consumer choice.

For my electorate in North Sydney and many small businesses around the country struggling with increasing costs, the inclusion of second-hand EVs would allow employers and employees to make clean, green choices at a lower cost. By extending the FBT exemption to imported second-hand EVs, small-business owners, like my mother and my father, and many in my family and amongst my friendship and community group, will potentially equally benefit from more affordable EVs.

Moving forward, I commit to continuing to work with Minister Bowen to have input into the delivery of the government's national electric vehicle strategy to ensure the rollout of any EV strategy ensures equity for all. If we work together and get it right, something as seemingly simple as an EV policy can deliver on many fronts, from saving motorists money on fuel and car purchases to increasing the scope of consumer choice on EV models, reducing our reliance on imported foreign oil, improving health outcomes by reducing pollution and, importantly, reducing transport emissions.

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