Australian Automotive Peak Body Launches Campaign to Retain Federal EV Tax Discount
The National Automotive Leasing and Salary Packaging Association (NALSPA) has united with industry leaders including Tesla and BYD to urge the Federal Government to maintain the Electric Car Discount amid an ongoing policy review.
Harry Taruva 
Canberra - Australia’s peak body for novated leasing has launched a national advocacy campaign to preserve federal tax incentives for electric vehicles, warning that any rollback would stall the nation’s decarbonization efforts and increase costs for suburban motorists.
The National Automotive Leasing and Salary Packaging Association (NALSPA) debuted its "Keep the EV Tax Discount" initiative on Monday.
The campaign, which includes a suite of digital and television advertisements, arrives as the Federal Government conducts a formal review of the policy credited with accelerating the domestic adoption of low-emission transport.
A broad coalition of automotive and financial entities has signaled support for the retention of the discount, including global manufacturers Tesla, BYD, GWM, and Polestar, alongside the Electric Vehicle Council and Pepper Money.
NALSPA Chief Executive, Rohan Martin, stated that the review creates uncertainty for working Australians who are currently utilizing the incentive to manage rising household expenses.
He argued that the policy has been instrumental in making electric vehicles accessible to a demographic beyond high-income urban earners.
"The Federal Government is reviewing the EV Discount, and working Australians deserve to know what's at stake," Martin said.
"We also want to remind the Federal Government how effective this policy is in driving EV uptake and reducing costs for everyday working Australians," he added.
NALSPA says tens of thousands of motorists, particularly those in outer-metropolitan areas, have transitioned to electric models specifically due to the financial feasibility provided by the current tax framework.
The association contends that the discount serves as a dual-purpose tool for climate policy and economic relief.
"If Australia is serious about reducing emissions and making the commute more affordable, then we have to continue helping workers and their families address the real barriers to EV uptake," Martin said.
He described the measure as one of the most practical clean transport policies in Australian history, noting its role in building a secondary market for used electric vehicles.
The campaign highlights that the "EV Discount" is currently driving systemic change by increasing the volume of new and second-hand electric cars in Australian driveways.
Industry experts suggest that a premature withdrawal of the incentive could lead to a significant contraction in the EV market share just as the country seeks to meet 2030 emissions targets.
"Any decision made on the EV Discount affects everyday Australians—the workers who are benefiting right now and the many more who could miss out," Martin said, adding that "we are calling on the Federal Government to keep the EV Discount."
