The federal government has announced cheaper loan options for some electric vehicles as part of efforts to reduce emissions and lower costs for motorists.
The Clean Energy Finance Corporation has committed $60 million to partner with Hyundai and Kia, offering eligible buyers discounted finance rates between 0.5% and 1%.
The government said the initiative could save an electric vehicle owner with a $70,000 loan about $1,900 in interest over five years.
Climate change and energy minister Chris Bowen said eligible vehicles include fully electric models priced below the luxury car tax threshold.
He said transport remains one of Australia’s largest sources of emissions and electric vehicles play a key role in cutting pollution while reducing costs for households.
The government is also reviewing its electric vehicle tax incentive, which currently exempts some EV drivers from paying fringe benefits tax through novated leases.
The exemption can save drivers tens of thousands of dollars over several years but costs the federal budget billions. The Productivity Commission has previously recommended scrapping the incentive.
