Australia Transport Emissions Fall as Electric Vehicle Sales Triple Under Federal Discount
Australia records its first transport emissions drop since the pandemic. NALSPA reports the Electric Car Discount is driving record EV uptake and helping the nation meet 2035 climate targets.
Harry Taruva 
Canberra - Australia’s transport sector has recorded its first year-on-year emissions decline since the COVID-19 pandemic, a shift industry leaders attribute to the federal government’s Electric Car Discount.
Data released by the Department of Climate Change and Energy indicates that transport emissions fell 0.4% in the year ending September 2025.
This downturn coincides with a significant surge in electric vehicle (EV) adoption, with EVs now accounting for more than 13% of all new car sales in 2025, a threefold increase over the past three years.
The National Automotive Leasing and Salary Packaging Association (NALSPA) identified the Electric Car Discount as the primary catalyst for this trend.
NALSPA says the policy currently supports approximately 50% of all new EV sales in Australia.
"The Electric Car Discount is proving its worth, it’s the biggest driver of EV uptake in Australia and is a key force behind the transport emission reductions we're now starting to see," said NALSPA Chief Executive, Rohan Martin.
"It’s an undeniable signal that the Albanese Government is on the right track with its co-joined demand and supply side policies," Martin said.
While Australia's EV market share has improved, it remains behind the global average of one in four.
Magenta Advisory suggests the discount added an additional 105,500 EVs to Australian roads between 2022 and 2024, avoiding up to 200,000 tonnes of CO_2-e annually.
The Climate Change Authority has warned that for Australia to meet its 2035 emissions targets, half of all light vehicles sold over the next decade must be electric.
Martin emphasized that the policy serves a dual purpose by easing cost-of-living pressures for suburban families.
"EVs are cheaper to run and thanks to the policy, cheaper to own," he noted, adding that the New Vehicle Efficiency Standard must remain paired with demand-side incentives to sustain this momentum.
