Time to Scrap SA’s EV Tax as Petrol Prices Surge

The new South Australian Labor Government has been encouraged to move ahead with its promised scrapping of the state based EV Tax sooner rather than later, due to the rapidly increasing cost of petrol and confirmation that the Federal Government is considering options for a national tax on electric cars.


  • Laws introducing a South Australian EV Tax that will begin in 2027, or when EVs make up 30% of new vehicle sales, passed the State Parliament last year.
  • SA Labor vowed to scrap the EV Tax if they won the March election.
  • Petrol prices have surged in South Australia, and across the country, over recent months.
  • The Federal Finance Minister, South Australian Senator Simon Birmingham, has today announced that the Morrison Government is considering its options regarding a national EV Tax.

“South Australia is in a unique position to take the lead on EV policy nationally and it should scrap this backwards tax sooner rather than later,” said Noah Schultz-Byard, SA Director at independent think tank The Australia Institute.

“Motorists are feeling the pinch at the petrol pump, our reliance on international oil is making our nation less secure and the impacts of climate change are becoming more extreme.

“We need more EVs on our road, not less. Governments at all levels should be doing whatever they can to make it easier for motorists to move away from petrol and go electric.

“SA Labor’s commitment to repealing the EV Tax was a welcome development in the campaign. Scrapping the tax and increasing incentives to help drivers make the switch to electric would help South Australians avoid the rising cost of petrol, improve the quality of the air that we breathe and reduce carbon emissions.”

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