The Tasmanian Government has taken the first steps towards automotive taxation reform, encouraging the penetration of EVs with its announcement to eliminate stamp duty on EVs for two years, starting 1 July 2021.

Federal Chamber of Automotive Industries chief executive Tony Weber says this is the kind of action it needs to see from leaders to encourage improvement, taxation reform and an introduction of new technology.

“As the future of mobility continues to rapidly transform, now is the time for governments to relieve motorists of a myriad of outdated, confusing and inefficient charges and replace them with a simplified road user charging approach,” he says.

“The FCAI released a discussion paper earlier this year advocating for the introduction of a road user charging approach aimed at eliminating charges such as registration, sales taxes and luxury car taxes and replacing them with one efficient and effective charge.”

Tony adds that the FCAI has consistently advocated for a national approach to these issues that would be federally led to avoid state governments introducing their own standards and incentive programs.

“Consistency is the critical element for Australian customers. If States introduce their own programs, they must align. Otherwise, the result will be another disjointed and chaotic system like the introduction of different rail gauges across the country,” he says.