The passage of the EV Tax through the South Australian Parliament with some, but not adequate, compensatory support for the fledging electric vehicle sector is regrettable, The Australia institute has said.

While important improvements were made to the EV Tax package in South Australia, including a six-year delay to the tax’s implementation and temporary purchase incentives and registration discounts for EVs are welcome, but more needs to be done to encourage the uptake of electric vehicles in SA.

“South Australia now has the dubious honour of being one of very few jurisdictions in the world to put a tax on electric vehicles,” said Noah Schultz-Byard, SA Director at The Australia Institute.

“Our research shows that seven in 10 South Australians will be less likely to purchase an EV once this tax is in place. That is bad news for the climate, the quality of the air that we all breathe and the hip pockets of South Australian motorists who are paying increasing prices at the petrol pump.

“There was no need for the parliament to rush ahead with this major reform, especially because the constitutional validity of state-based EV taxes is currently being challenged in the High Court.

“While important improvements have been secured since the government first announced their EV Tax, the parliament has missed an opportunity to genuinely support electric vehicles in South Australia.

“The SA Government says it wants to be a national leader on EV uptake. While statements and goals are good, adequate policy commitments to support the EV sector are now needed.

“Our research shows the EV package in South Australia falls well short of what is being offered by the SA government’s Coalition counterparts in New South Wales.

“With the SA Government now committed to taxing the clean transport technology of the future, it has been left to others in the parliament to chart a way forward that genuinely supports EVs in this state.”