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Australia: Productivity Commission recommends phasing out electric vehicle tax exemptions

The consultation closes on September 15, 2025. 

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August 8, 2025

The Productivity Commission published its second interim report into its inquiry into the first pillar of the federal government's productivity agenda, in which it recommends that the government introduce a new emissions-reduction incentive to cover heavy vehicles and phase out tax exemptions on electric vehicles (EVs).

The Commission recommends that the new emissions-reduction incentive be as technology-neutral as possible, and since the implementation of the new vehicle efficiency standard, the government may phase out fringe benefits tax exemptions on EVs, with state and territory governments phasing out vehicle stamp duty exemptions and registration discounts for EVs.

The consultation closes on September 15, 2025.

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