New tax breaks could see electric cars get cheaper

By Sara Borman · · 2 min read
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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.

Compare car loans - last updated 8 December 2023

Search promoted car loans below or do a full Mozo database search . Advertiser disclosure
  • 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.

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    Details
  • New Car Loan - Special

    Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.74% p.a.
    8.85% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Extra low rate for qualifying homeowners. 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 7.74% would cost $37,153.94 including fees.

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    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.
    7.19% 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
  • New Car Loan

    Fixed, Secured, Excellent Credit Score [832+]

    Interest rate
    comparison rate
    Monthly repayment
    7.29% p.a.to 7.79% p.a.
    8.00% p.a.to 8.50% p.a.based on $30,000
    over 5 years

    Enjoy a quick application process and no monthly fees on NRMA new car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.

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    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.09% p.a.
    8.21% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. 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 7.09% would cost $36,598.64 including fees.

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    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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