The Motor Traders’ Association of New South Wales (MTA NSW) has welcomed the announcement by the Australian Government to introduce discounted loans for electric vehicles (EVs).
This significant initiative marks a key milestone in accelerating the shift to EVs and advancing Australia’s transition towards a cleaner, more sustainable transport future.
Funded by $150 million from the Clean Energy Finance Corporation (CEFC), the scheme will offer low-interest loans to workers earning less than $100,000 annually and essential service workers, including police officers, teachers, firefighters, and nurses.
The loans will be available for both new and used EVs, a move aimed at bolstering consumer confidence and supporting the residual value of these vehicles.
“MTA NSW commends the Government for taking this proactive step to make low-emission transport more accessible to everyday Australians,” said Stavros Yallouridis, CEO of MTA NSW (pictured).
“However, to accelerate our transition to meet environmental targets, we encourage policymakers to consider adopting more comprehensive support measures, similar to successful European models that provide universal purchase subsidies regardless of vehicle value or buyer income.”
Yallouridis stressed that while targeted support is welcome, broader subsidy measures could significantly boost EV adoption across all population segments.
“The experience in the European markets shows that universal subsidies can dramatically accelerate the transition to electric vehicles,” he said. “This comprehensive approach could be transformative for Australia’s emissions reduction goals.”
This announcement comes ahead of the implementation of Australia’s first-ever New Vehicle Efficiency Standard (NVES), which takes effect on 1 January 2025. The NVES aims to drive the adoption of low-emission vehicles and ensure Australians have access to a greater range of sustainable transport options.
“We’re pleased that the Government has listened to industry and is complementing the ‘stick’ of fuel efficiency standards with the ‘carrot’ of consumer incentives,” Yallouridis said. “For the automotive industry to thrive during this shift, consumers must be willing and able to adopt cleaner vehicles. As seen overseas, strategic incentives are essential pieces of the puzzle to drive uptake.”
MTA NSW has also praised the Australian Government’s broader strategy to encourage EV uptake. This strategy includes a $60 million dealer EV charging infrastructure fund, Fringe Benefits Tax (FBT) exemptions, and financial support for apprentices working on EVs. These measures ensure that the automotive retail sector is prepared to meet the rising demand for EVs.
“Dealerships and independent repairers lie at the heart of Australia’s automotive transition,” Yallouridis added. “Their skills, tools, and services ensure EVs are sold, maintained, and repaired safely and effectively. Ongoing investment in their capabilities will be critical to building public confidence and enabling widespread EV adoption.”
MTA NSW remains committed to collaborating with the Australian Government, automotive businesses, and consumers to guide a successful and sustainable transition to electric vehicles in New South Wales. The organisation continues to advocate for policy settings that will accelerate the speed and scale of EV adoption, driving economic, environmental, and social benefits for communities across the state.
