If Labor cares about fairness, it will cut EV subsidies
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The month of March saw a record 15,839 electric vehicles (EVs) sold, up 42% from February. As a result, 14.6% of all new car sales in February were EVs.
The SMH’s Victoria Devine argued that the EV Fringe Benefits Tax (FBT) exemption for novated leases under $91,387 is the main driver of EV sales.
However, this scheme is proving to be both very costly to the federal budget and highly inequitable.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.