9th November, 2021 ยท bulletin

Morrison Government Announces Future
Fuels and Vehicles Strategy

< 1 minute to read

Today, the Prime Minister Scott Morrison has announced a new Future Fuels Strategy backed by $250 million in government funding. It is expected that the public and private sectors will match this figure with an equal contribution, creating a $500 million combined fund. The Government expects with this strategy in place, PHEVs and EVs will comprise 30% of the new car sales market by 2030.

One of the key components of the strategy is a focus on improving and growing the EV recharging network and infrastructure though it also supports the adoption of hydrogen fuel and the integration of EVs into the electricity grid. The strategy avoids direct subsidies and consumer incentives and instead is designed to make the choice of an EV or PHEV easier for buyers.

The AADA welcomes the Future Fuels strategy, however notes that there is an opportunity for the Federal Government to co-ordinate the strategy with the various state and territory EV programs that are being rolled out. We also believe that the strategy highlights the need for a thorough review of all automotive taxes and duties, including the LCT and Passenger Vehicle Tariff scheme which add to the cost of many EVs.