Independent think tank The Australia Institute has welcomed SA Labor’s commitment to repealing the state’s recently legislated EV Tax, if they win the next election.

Key points:

An EV Tax will come into force in South Australia in 2027, or when EVs make up 30% of new car sales, after government legislation passed the SA Parliament last month.
The tax will cost EV owners more than 2.5 cents for every kilometre that they drive.
Australia already lags the rest of the world on EV uptake and Australia Institute research shows that seven in 10 South Australians will be less likely to purchase an EV once this tax is in place.
Today SA Labor have announced that, should they win the next election, they will repeal the EV Tax.

“Removing this tax will be good for the climate, the quality of the air that we breathe and the hip pockets of South Australian motorists who are facing the ever-increasing cost of petrol,” said Noah Schultz-Byard, SA Director at The Australia Institute.

“Taxing people for making the switch to a cleaner, healthier technology is a backwards move.

“We are already so far behind on EVs in Australia where, last year, less than 1% of new cars sold were electric.

“This tax will pull the handbrake on EV uptake in South Australia, and it should be repealed.

“We should be doing everything we can to reduce our carbon emissions and that means speeding up, not slowing down, our state’s transition to EVs.”