Electric vehicle industry says NSW govt 'broken faith with voters' after backflip on EV incentives

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The Electric Vehicle Council (EVC) has criticised the New South Wales government’s forthcoming decision to abandon rebates on EV purchases, arguing the move will worsen income inequality across Sydney.

Ahead of the NSW state budget announcement on Tuesday, reports revealed Treasurer Daniel Mookhey is set to terminate the current $3,000 incentive for drivers who buy new electric vehicles and funnel the savings into building more base infrastructure.

"The NSW incentives, combined with more affordable EV imports, were just starting to drive significant uptake in Sydney's west and the state's regions,” EVC chief executive Behyad Jafari said in a statement. "Fewer EVs means dirtier Sydney air, continued reliance on foreign oil imports, higher carbon emissions, and more budget pressure on everyday households. It's foolish, short-sighted policy from a government that people would have expected more from."

NSW Treasurer Daniel Mookhey will make the announcement in Tuesday's state budget. Picture: NCA NewsWire / Nikki Short Other Australian jurisdictions each has its own EV incentive in place, with Queensland offering the highest benefit of $6,000 in rebates and 33 per cent discount on stamp duty. For NSW, since the rebates were launched, sales rose by 450 per cent and the most popular EV models fell in price by $8,000.

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