MTA Group Urges Government to Keep Electric Car Discount in Place Amidst Ongoing Fuel Crisis

As fuel prices surge to record levels amid ongoing geopolitical instability, the MTA Group is calling on the Federal Government to maintain the Electric Car Discount (ECD) in its current form. This is the wrong time to remove the only consumer incentive that makes switching away from volatile fuel costs a financially viable option for everyday Australians.

The MTA Group represents more than 3,150+ member businesses and 28,000 workers across NSW and the ACT. Their call follows the group’s formal submission to the statutory review of the ECD. It aligns with the position of the Electric Vehicle Council, which has similarly urged the Government to protect and strengthen the discount.

"With no clear resolution to the conflict in the Middle East and oil prices continuing to climb, Australian families are feeling the pressure at the bowser like never before,” said Collin Jennings, Head of Government Relations at the MTA Group. “The families who are the most energy secure right now are those who have already made the switch to electric. This is exactly the moment to be making EVs more accessible, not less."

That message is already being heard. Dealerships across Australia are reporting a marked increase in consumer interest in electric vehicles since the fuel crisis began. Australians are actively seeking a way to mitigate their exposure to volatile petrol prices, and the ECD is a critical part of that solution.

More than 114,000 Australians have already switched to electric vehicles under the scheme, with real and measurable savings on running costs flowing to household budgets as petrol costs skyrocket.

“The ECD has delivered exactly what it was designed to do," said Mr Jennings. "EV market share has grown from 2 per cent to over 13 per cent since its introduction, with more than 114,000 Australians already making the switch. This is not the time to pull back."

The ECD works in tandem with the New Vehicle Efficiency Standard (NVES) to form a coherent policy framework for decarbonising Australia's light vehicle fleet. While the NVES creates supply-side pressure on manufacturers to bring cleaner vehicles to market, the ECD stimulates consumer demand. Both elements are essential. Without strong demand-side measures, the NVES risks becoming either unachievable for manufacturers or a source of higher vehicle prices passed on to consumers.

"No country has successfully transitioned its vehicle fleet through supply-side measures alone," Mr Jennings said. "The NVES and the ECD were designed to work in tandem. Removing the ECD now, just as consumers are turning to EVs in response to

the fuel crisis, would be undermining the transition at the very moment it matters most."

For MTA Group members, continued EV uptake creates the investment case for automotive workshops and crash repairers to acquire the specialist equipment, training, and certification required to service electrified vehicles. As a leading training provider, MTA Group sees firsthand the workforce development challenges in the transition. Stable policy will give businesses the confidence to invest and train the workforce that a growing electrified fleet will need.

"There is no point putting more EVs on the road if there is no one to fix them,' Mr Jennings said. 'Our members are making real investments in equipment and training. They need confidence that the policy will hold.”

The MTA Group is also urging the Government to rule out means testing, which would be unworkable and would hit lower-income earners hardest. If cost pressures require adjustment, a modest reduction in the vehicle price cap is preferable to structural changes to the discount. Any changes should also wait until road user charging is in place, so Australians are not penalised twice for choosing to go electric.

“Timing matters,” Mr Jennings said. “In the midst of a fuel crisis, with Australians actively seeking alternatives to petrol-dependent vehicles, now is not the time to remove one of the most effective tools we have for accelerating the shift. The Government must hold the line.”