Why Australia Needs a National Strategy for Electric Vehicle Subsidies

The electric vehicle (EV) industry in Australia is experiencing growing pains as inconsistent state-based incentives and the rollback of key subsidies create confusion for buyers. Scott Maynard, managing director of Polestar Australia, is leading the call for a cohesive national strategy to level the playing field and ensure equitable support for EV adoption across the country.

The Case for a National EV Subsidy Strategy

Electric vehicle incentives in Australia are currently a patchwork of state-based policies that vary significantly in scope and value. Western Australia, for example, offers a generous $3500 rebate for EVs priced under $70,000. Meanwhile, states like Victoria, New South Wales, and South Australia have scaled back or eliminated similar subsidies.

Maynard described the situation as “all over the place” and advocated for a streamlined approach. "It would be great to see the varying levels of support that are offered on a state basis to be brought into a national policy," he said during the launch of the Polestar 4 electric SUV.

The Federal Government’s Role

The Federal Government has already introduced initiatives to encourage EV uptake, including investments in charging infrastructure and Fringe Benefits Tax exemptions for novated leases. However, financial support for buyers—such as cash rebates or tax breaks—remains predominantly the responsibility of state governments.

Polestar argues that a unified approach could eliminate discrepancies that currently see buyers paying drastically different prices for the same EV depending on their location. For instance, an entry-level Tesla Model 3 costs $57,961 drive-away in Western Australia (inclusive of its rebate) but is nearly $2000 more expensive in South Australia, where no such rebate exists.

The Global Shift Away from Subsidies

Australia’s fragmented approach comes at a time when several governments worldwide are scaling back their EV subsidies as adoption grows and markets mature. Yet Maynard believes Australia still needs targeted support to accelerate the transition to electric mobility.

He highlighted potential measures such as tax breaks, stamp duty exemptions, or reductions in the Luxury Car Tax (LCT) to make EVs more affordable. "It would be really good to see a national policy on how electric vehicles are incentivized," Maynard said.

Moving Towards a Fairer System

A national EV subsidy strategy could simplify the buying process and ensure Australians have equal access to financial incentives, regardless of where they live. By addressing disparities in state policies, the Federal Government has the opportunity to drive faster adoption of clean transport solutions and create a more cohesive market for EVs.

As the automotive world shifts towards electrification, Australia’s approach to EV incentives will be critical in shaping the country’s future mobility landscape. Polestar’s call for national reform could be the push needed to create a fairer, greener system for all.