New tax breaks could see electric cars get cheaper

cheap electric car with wind turbine and trees for green energy

Plans to remove the Fringe Benefits Tax (FBT) and tariffs for electric vehicles could see some electric vehicles (EVs) getting cheaper under salary sacrifice arrangements. 

To keep pace with European efforts to stamp out the sale of new petrol and diesel vehicles, the government is making moves to bring Australia up to speed. The ACT have signalled their intent to phase out new petrol and diesel vehicles by 2030, and this could play an important role.

The main place this will make electric vehicles more affordable is as cars for employees or as personal cars under salary sacrifice. While many EVs are subject to luxury taxation, this will make a $50,000 electric car roughly $5,000 cheaper than they are right now.

There are also talks to remove the 5% import tariff on imported EVs from certain countries, notably European vehicles, as a part of this movement to wider EV uptake. While many of the current fleet come from China, Japan, Korea, and the USA, where existing free trade agreements prevent additional taxes, this may make European models more attractive.

We’re also anticipating a drop in the price of lithium batteries come 2024, a key component in many electric vehicles. More accessible lithium for manufacturing paired with lower taxing on the vehicles will hopefully see the EV market becoming more and more accessible in Australia.

Unfortunately, this will not remedy the ongoing supply chain issues that continue to plague Australia’s car market - especially when it comes to electric vehicles.

While a greater movement towards electric vehicles could have a big impact on the energy grid, it is one of the ways to reduce your personal carbon footprint. It's also a major way to save - despite upfront costs, the long term savings on fuel grow in importance as the cost of fuel continues to rise.

You can also score lower rates when it comes to car loans, with green loans having some of the lowest rates across the board.

If you are looking to get your hands on a new car, electric or otherwise, check out Mozo’s best car loans.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 92 car loans.
Last updated 19 June 2024 Important disclosures and comparison rate warning*
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details
  • Green Car Loan

    Home Owner, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.09% p.a.
    7.21% p.a.based on $30,000
    over 5 years

    No monthly or ongoing fees. Get a 0.70% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.09% would cost $35,754.42 including fees.

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    Details
  • Car Loan

    Up to 7 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    6.84% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used car, caravan or motorbike, up to 7 years old. Fixed rate with terms from 1 to 7 years. Make additional payments and free redraw. No early payout penalties. No monthly fees. Quick start application in less than 5 minutes online.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,460.64 including fees.

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    Details
  • New Car Loan - Special

    Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.19% p.a.
    9.30% p.a.based on $30,000
    over 5 years

    Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 8.19% would cost $37,541.41 including fees.

    Compare
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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