EV tax breaks to be slashed from April next year

SMH · Brittany Busch, Paul Sakkal, Caitlin Fitzsimmons · Tuesday 5 May 2026

EV tax breaks to be slashed from April next year

A major tax exemption for electric vehicles will eventually be replaced with a 25 per cent tax discount as Labor eyes savings in next week’s budget.

Labor handed out a tax break to get the EVs rolling, and now the cars are rolling so they're taking it back — like shouting the bar a round and then asking everyone to chip in for the tip. The discount drops to 25 per cent because Treasury found a savings line and a budget week. Industry policy by spreadsheet, climate policy by stopwatch.

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