It’s well known that Aussies have fallen well behind Europe, America and China in the race to electrify our roads. Even New Zealand, our closest neighbour, has zipped ahead with a 15% market share, while we lag behind at 10%. Several factors have slowed the adoption of EVs here, but a major one is that Aussie drivers demand variety, and before 2023, our options in models and makes were quite limited.
Fortunately, we’ve started to see the tides shift, especially with the help of the Electric Car Discount.
What is the Electric Car Discount?
To encourage everyday Aussies to give their first EV a spin the Australian government released the National Electric Vehicle Strategy in 2022. One facet of this bill was the Electric Car Discount which made electric vehicles on novated leases exempt from Fringe Benefit Tax. This allows drivers to pay for their next EV 100% from their pre-tax salary and save on the GST applicable to their purchase cost and running cost expenses (insurance, registration, fuel/charging, maintenance and tyres). With the electric vehicle discount we’ve seen customers save up to $8,000 a year when purchasing an EV.
What vehicles are eligible?
Zero emissions vehicles include:
- Battery electric vehicles
- Hydrogen fuel cell electric vehicles
- Plug-in hybrid electric vehicles
To be eligible for the FBT Exemption, the car must also meet the below criteria:
- Below the luxury car tax threshold (LCT) of $91,387 for the 2024/25 financial year
- First held for use from 1st July 2022 onwards
Additionally, the exemption applies to plug-in hybrid electric vehicles (PHEVs) up until 1 April 2025. From that date, those on pre-existing leases are still entitled to the FBT exemption up until the end of their lease, so long as a commitment is made before 1 April 2025.
2023 was a huge year for electric vehicles in Australia but 2024 is taking that momentum up to the next level. We’ve already seen the Toyota bZ4X, Hyundai IONIQ 6, Kia’s EV9, Volvo’s EX30 and more hit the road this year and the second half is looking just as exciting.
Making the leap to an EV can seem overwhelming, especially with more choices on the market than ever. To make your search easier we’ve compiled a list of cars eligible for the discount that we’re excited to see on the roads before 2025!
Peugeot 308
Peugeot aims to double their electric vehicle range by the end of this year, with the addition of the E-308 electric hatch, E-208 hatch and E-Expert mid-size van at the end of this year. The E- 308 is set to compete with the MG 4 electric hatch, which swept Australia by storm for its affordability and trusted brand name.
Drivers can expect a 51kWh battery and 154bph motor, with a driving range of 414 kms. Model specifications for Australia are still under wraps, but it has been confirmed that only the hatchback will be hitting our shores, although the wagon is available internationally.
Details for the Australian launch have remained vague, but international pricing suggests the E-308 will set Aussies back around $65,000-70,000 plus on roads. With a pricetag like that, Peugeot are going head to head with established favourites like the Tesla Model Y, Polestar 2 and Hyundai Ioniq 5.
Volkswagen ID.3, ID.4 & ID.5
In 2024 Volkswagen is going full speed ahead with EV’s on the Australian market, after lagging the past few years. The ID.3 is a golf sized hatchback, that’s been available in the European market since 2020. Expected at the end of 2024, the car is a Cupra Born under the skin with an updated fit out, with similar cabin space to the well loved Volkswagen Golf.
The ID.4 and ID.5 SUVs are anticipated to hit showrooms sooner than the ID.3, with an expected arrival next month. Australian models will feature the upgraded specs announced last year, with 210kW electric motors and VW’s new infotainment system. Both models have a driving range of approximately 550 km and are set to bridge the gap between the Tiguan and Touareg in the Aussie market.
Volkswagen have held back from confirming pricing for any of their upcoming releases, but experts are estimating under $60,000 for the ID.3, and for the ID.4 and ID.5, we can expect them to be in the range of $80,000-$90,000. Despite the competitive pricing of new Chinese manufacturers entering the market, many expect customers will appreciate the European flair and trusted Volkswagen brand.
Polestar 4
The Polestar 4 is set to join the Polestar 2 sedan and Polestar 3 SUV, boasting to combine the aerodynamics of a coupe with the space of an SUV. Drivers can expect to see the Polestar 4 in showrooms from August 2024, with orders already open.
Controversially, the EV features a rear facing HD camera, replacing the traditional rear window. While some of us may baulk at the concept, the feature allows for design elements to shine like the extended panoramic roof and additional space and headroom for passengers. The HD camera also provides drivers with a wider, unobstructed rear view, designed to be kept clean from water and grime.
The Long Range Single Motor model features a 200kW/343Nm motor and will set you back $81,500 before on roads, while the Long Range Dual Motor has a 400kW/686Nm motor setup that sprints to 100km/hr in just 3.8 seconds and will be priced from $94,050.
Audi Q4 E-Tron
The Audi Q4 E-Tron, announced at last year’s Melbourne Electric Vehicle Show, is set to hit the roads mid this year. The Q4 will join the Q8 E-Tron and E-Tron GT on Audi’s electric lineup, filling a gap in Audi’s range by offering a mid-priced option.
Audi Australia has confirmed that the Q4 e-tron will be available in two variants: the rear-wheel-drive 45 and the all-wheel-drive 55 Quattro. Customers can also choose between a traditional SUV or a coupe-styled Sportback body type. Though Aussies have had to wait 3 years since the Q4 E-Tron’s European debut, Australian models will benefit from the latest model updates available internationally.
The entry level Q4 will compete with The Volvo XC40 and top-of-the-range Tesla Model Y Performance, priced at $88,300 plus on-roads in both body styles, with the 55 Quattro priced from $108,500 or $109,500 as a Sportback.
Jeep Avenger
Australians should be excited to see the award winning Jeep Avenger, set to arrive in Q4 this year. Named European Car of the Year in 2023, this fully electric compact SUV has been celebrated for combining functionality, style and technology. Designed and built in Europe, the SUV is sized similarly to the Mazda CX-3 or Toyota Yaris Cross, but priced competitively to the MG ZS EV and Hyundai Kona.
The city SUV will be available in three trim levels, the Longitude, Limited and Summit, all powered by a single front 115kW/260Nm electric motor and reported to offer a driving range of 391 km. The model grades differ in safety tech, such as blind spot monitoring and rear cross-traffic alert, in addition to some cosmetic differences.
Prices start at $53,990 for the Longitude, up to $63,990 plus on roads for the Summit, making it one of the most affordable SUV EVs in the Australian market. We’re excited to see Jeep Australia’s first dip into the EV pool, and hoping to see more models announced in the near future.
Wanting to learn more? Give us a call at 1300 664 323 or submit an inquiry!
