Every Australian household could soon be required to contribute to the funding of electric vehicle (EV) charger infrastructure, regardless of whether they own an electric vehicle. The proposal, which has received backing from the Albanese government, would permit electricity networks to recover the costs of EV infrastructure by incorporating them into their regulated asset base. This would spread the expense across all energy users over an extended period.
Financial Impact and Timeline
The government maintains that the financial burden on households will be minimal, estimating an additional cost of between 79 cents and $1.44 per year. Importantly, the change is not expected to take effect until 2029. The proposal is anticipated to deliver up to 14,000 additional chargers, effectively more than doubling Australia's existing charging network.
Rationale Behind the Policy
The Albanese government argues that this policy is essential to accelerate the deployment of charging infrastructure, which has lagged in areas where private investment has been limited. Australia's EV charging network has struggled to expand in regional and suburban areas, where lower returns have slowed commercial investment. Under the plan, energy networks would step in to build chargers in these underserved locations.
Complementary Federal Efforts
The strategy builds on existing federal initiatives to boost EV adoption. The government highlights its Electric Car Discount, which has already reduced upfront costs for consumers, and the Driving the Nation Fund, which supports major infrastructure projects, including Australia's first national EV charging network. This network will feature stations approximately every 150 kilometres along key highways.
State-Level Initiatives
Despite federal funding, households will still bear part of the cost through their electricity bills. State governments have also pursued similar initiatives. In New South Wales, a strategy introduced in 2021 under the former Gladys Berejiklian government aims to expand EV uptake and infrastructure. The plan remains in place and includes installing ultra-fast charging stations every 100 kilometres along major state highways and every 5 kilometres across metropolitan areas.
EV Adoption Growth
New data from the Electric Vehicle Council reveals rapid growth in EV adoption across Australia, accelerated by the ongoing fuel crisis driven by the Middle East conflict. Tesla and Polestar delivered a combined 1,458 vehicles in April, more than double the 702 delivered in April 2025. Year-to-date deliveries have reached 9,185 vehicles, marking a 47% increase compared to the same period last year. The Tesla Model Y was the top-selling vehicle overall in April, with 822 cars delivered.
Tax Concession Changes
The Albanese government has also moved to scale back tax concessions for electric vehicles, flagging changes to the fringe benefits tax (FBT) exemption. This exemption currently allows employers to avoid paying fringe benefits tax on EVs under $91,387 purchased through a novated lease. Under the proposed changes, the full FBT exemption will remain in place until March 2027. It will then be limited to EVs priced at $75,000 or less until 2029, before transitioning to a flat 25% discount for all eligible vehicles below the luxury car tax threshold. The government estimates these reforms will save $1.7 billion over five years while maintaining support for households switching to electric vehicles.
