More affordable, lower priced second hand electric vehicles (EVs) are not available to consumers in Australia. Such vehicles are generally supplied by business rolling over their fleets every three to four years.
Business buyers account for over 40% of new light vehicle sales, but their uptake of EVs is shockingly low at a mere 488 EVs in 2020 or 0.02% of passenger cars and light SUVs, compared to the European average of 57% of EVs acquired by business. A combination of EVs high-cost price, tax disincentives and lack of workplace charging infrastructure, means battery electric vehicles are uncompetitive for business fleets.
The report prepared by Griffith University’s Dr Anna Mortimore, a tax law expert who led the research with Dr Diane Kraal said they had undertaken the study to investigate how tax changes can accelerate the uptake of battery electric vehicles within business fleets, supported by home charging from the employee’s place of residence.
Tax changes targeting business fleet buyers have been used successfully around the world, particularly in Europe. The highest is in the Netherlands, where 73% uptake of Battery Electric Vehicles (BEV) are business buyers, the United Kingdom at 67%, Germany 49% and Norway at 34%. After three to four years, these company BEVs are rolled over into the second-hand market, which are cheaper and more affordable to all consumers and not just for high end buyers. In Australia consumers cannot rely on more affordable lower priced business fleet EVs being rolled over into the secondhand market any time soon. The Australian Government’s own environmental targets for 89% of new car sales being EVs by 2030, are unlikely to be met without electrifying our business fleets.