Announced on May 5, 2026, the Albanese Government will update Australia’s fringe benefits tax (FBT) exemption for electric vehicles (EVs), shifting to a phased system while maintaining support for lower running-cost cars. Existing leases remain unaffected.
In the first phase, the full exemption will remain until Marc

On March 24, the European Automobile Manufacturers’ Association (ACEA) welcomed the conclusion of negotiations for a free trade agreement (FTA) between the European Union and Australia. The tariff reductions on vehicles will put EU exports on an equal footing with other major auto-exporting countries, which already e

On March 24, the German Association of the Automotive Industry (VDA) issued a statement welcoming the free trade agreement between the EU and Australia. It opens significant opportunities for the European automotive industry. In 2025, Germany exported automotive goods worth EUR 2.3 billion to Australia. The anticipat

Announced on December 12, 2025, the Australian government under Prime Minister Anthony Albanese released the terms of reference for the statutory review of the Electric Car Discount, which has been in place since July 2022. 
The policy, which provides fringe benefits tax (FBT) and tariff exemptions, has helped accele

On November 17, the European Investment Bank (EIB), the bank of the European Union through its development arm EIB Global, and the Government of Australia signed a declaration of intent to strengthen cooperation on critical raw materials. 
This declaration is the first step towards enabling the EIB to support the fin

From November 2025, every new electric, hybrid, and hydrogen fuel cell vehicle introduced to the Australian market will be required to include an Acoustic Vehicle Alerting System (AVAS) as standard equipment, in a move to enhance pedestrian safety.
The AVAS produces an audible sound when a vehicle operates at low spe

Announced on September 17, 2025, the Australian Government has allocated AUD 1.1 billion to expand domestic production of low carbon liquid fuels (LCLF), including renewable diesel and e-fuels, to reduce emissions in heavy freight, aviation, and other hard-to-abate transport sectors.
Produced from waste, biomass, or

On September 18, 2025, Australia’s Prime Minister unveiled the 2035 emissions reduction target, a major step toward net zero by 2050, aiming to cut emissions by 62–70% from 2005 levels with a strong focus on zero-emission vehicles and fuel efficiency.
The government is introducing the New Vehicle Efficiency Standard

On July 1, 2025, Australia’s New Vehicle Efficiency Standard Act 2024 (NVES Act) officially came into force, marking a major milestone in the country’s efforts to reduce transport-related carbon emissions.
Under the new legislation, regulated entities, including car manufacturers and vehicle suppliers holding type ap

Announced on December 19, 2024, The Commonwealth Bank of Australia (CBA) is offering low-interest EV loans for workers earning less than AUD 100,000 annually, as well as essential workers such as police officers, teachers, fire fighters, and nurses. This is backed by AUD 150 million from the Clean Energy Finance Corp

Announced on November 9, 2024, the Australian Renewable Energy Agency (ARENA) has stated that AUD 100 million in funding will be available under the “Driving the Nation” program in 3 focus areas to support transitioning heavy vehicles to electric.
ARENA is separately providing AUD 28.6 million in funding to 2 project

On September 4, the Allan Labor Government awarded Victoria’s first zero-emission bus contracts. It will fast-track the replacement of existing diesel buses with 600 new zero-emission battery electric buses by 2035.
The new bus contracts have been awarded to Victorian-based bus operators Dysons, CDC, and Kinetic foll

Australia is emerging as a key player in the shift to electrification in the Asia-Pacific region, particularly in the Battery Electric Vehicle (BEV) segment. With federal and state-based incentives, the country is poised to grow its xEV market significantly. In 2023, Australia achieved the fifth largest xEV sales sha

On August 15, the UK Battery Industrialization Centre (UKBIC) signed an agreement Powering Australia to strengthen collaboration in battery research, technology and innovation between Australia and the UK. The collaboration aims to advance critical minerals, strengthen supply chains, achieve net zero goals, remove te

On August 9, Australia hosted the first Senior Officials’ Meeting under the Electric Vehicle (EV) collaboration mechanism Memorandum of Understanding (MoU), which was inked with Indonesia in 2023, in Canberra, Australia.
Under the MoU, both countries, which are partners in the clean energy transition, have committed

Announced on July 2, 2024, the Queensland Government has established the Australian battery supply chain database to connect businesses involved in the manufacture or supply of batteries and their components. 
Hosted by the Industry Capability Network (ICN), the database was developed in collaboration with the Advanc

On May 28, the EU and Australia signed a memorandum of understanding (MoU) for a bilateral partnership to cooperate on sustainable critical and strategic minerals. 
It will enable the EU to diversify its supplies of materials necessary for the green and digital transitions while contributing to the development of Aus

Announced on May 27, 2024, the Government of New South Wales (NSW), Australia has awarded the first round of EV kerbside charging grants.
In this round one with NSW Government funding of AUD 4,134,775 in total, 671 chargers will be installed across 16 local Government areas, by 8 grant recipients, namely Waverley Cou

Announced on November 24, 2023, Australia and Indonesia have signed a Memorandum of Understanding (MoU) to launch an EV collaboration mechanism, as both sides agreed to advance mutually beneficial cooperation on battery manufacturing, critical minerals processing and other aspects of the EV ecosystem. 
The two countr

On April 19, 2023, the Australian government officially released “The National Electric Vehicle Strategy” with 3 key objectives: 1. Increase the supply of affordable and accessible EVs, 2. Establish the resources, systems, and infrastructure to enable rapid EV uptake, and 3. Encourage increased EV demand.
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