Workers earning less than $100,000 a year will be able to purchase electric vehicles using low-interest loans that the federal government says will save them thousands of dollars in interest.
Essential workers like police officers, teachers, fire fighters and nurses will also be able to access the loans regardless of income.
The loans will be on offer through Commownealth Bank for new and used electric vehicles worth up to $55,000.
The government says the loans will be offered at interest rates up to 5 percentage points lower than the standard rate, which could save more than $8,000 in interest for a $40,000 loan repaid over seven years.
Commonwealth Bank is currently offering the loan through its “EV access program” at a discounted rate of 5.49 per cent per annum, instead of between 6.49 to 10.49 per cent on a secured personal loan.
The loans will be on offer for electric vehicles priced below $55,000. (Reuters)
Climate Change Minister Chris Bowen said getting more EVs on the road would be good for the climate as well as consumers.
“What’s good for the planet is good for your pocket … but there are still some challenges, and one of the challenges is the up-front cost,” Mr Bowen said.
“We want Australians to have more choices and cheaper cars. And we trust Australians in making their choices.”
The $150 million scheme will be funded through the Clean Energy Finance Corporation.
‘Carrot’ added to carmaker stick
Mr Bowen added that more EVs valued under $55,000 were entering the market, and he expected those options to grow once the government’s New Vehicle Efficiency Standard took effect next year.
The NVES imposes rules on carmakers to reduce the overall emissions of the total cars they sell each year, or else face heavy penalties.
Motor Trades Association boss Matt Hobbs said today’s announcement was the “carrot” to accompany the “stick” the government legislated earlier this year.
“This is the carrot that helps get people into cars and buying them,” Mr Hobbs said.
The Electric Vehicle Council’s “State of EVs” report released this week showed electric cars now account for nearly one in 10 new car sales in Australia, a 150 per cent increase on the year before.
The report said there were now 122 EV models available for sale in Australia, and several of the most popular models including the Tesla Model 3, BYD Seal and BYD Atto 3 are advertised at prices below $55,000, which would make them eligible under the government’s loan scheme.
