A second-hand electric car start-up is offering up to $3000 off its vehicles over the next month in a bid to prove targeted incentives can speed up Australia’s transition to low-emission transport.
The discount, unveiled on Wednesday, will be means-tested, with the greatest savings offered to low-income households.
The bold move by Good Car Company comes one day after the NSW government confirmed plans to scrap its $3000 rebate on new electric vehicles from January.
It also follows the Victorian government’s move to end its $3000 electric car rebate almost one year earlier than planned despite research showing financial incentives could speed up transport pollution cuts.
Good Car Company co-founder Anthony Broese van Groenou said the firm launched the campaign to prove targeted rebates could help households cut emissions and unlock transport savings.
Swapping a petrol vehicle for an electric car could save drivers more than $12,500 in fuel and maintenance costs over five years, he said, but many households needed help to overcome the up-front price.
“EV subsidies work,” Mr Broese van Groenou said.
“Properly designed and targeted subsidies would provide greater benefit to lower income households and encourage (manufacturers) to maintain competitive pricing.”
Good Car Company will extend the $3000 discount to buyers with a taxable annual income of up to $60,000 and assets valued at less than $1.5 million on vehicle purchases up to $50,000.
Smaller discounts of $2000 and $1000 will be offered to buyers with higher incomes who buy second-hand vehicles between September 20 and October 20 and registered non-profits and community groups will also be eligible.
Mr Broese van Groenou is hoping the discounts will convince state and territory governments to offer more targeted financial rebates and extend support for the purchase of second-hand electric cars.
“Ensuring all Australians have equitable access to clean transport is critical if we are to meet our emissions reductions goals and tackle the cost of living crisis,” he said.
The company’s campaign has received support from the Australian Council of Social Services and Smart Energy Council, with external affairs manager Wayne Smith saying it's too soon to end state rebates.
“It’s the worst possible time to pull the plug from electric vehicle subsidies,” he said.
“Transport emissions are high and rising and petrol prices are hitting record highs.”
The NSW government committed $263 million to the development of electric vehicle chargers in its budget delivered on Tuesday, which Treasurer Daniel Mookhey said would address the most significant barrier to electric car adoption.
