Why switch to an EV? From cost savings to environmental benefits, there’s a lot to enjoy by investing in an electric vehicle.
Thinking of buying an EV but not sure if you’re ready to make the leap from petrol to electric?
Below we’re discussing all the reasons investing in an EV is a wise choice – from the cost benefits to Australian government tax incentives and more.
Plus, we’ll help you determine if now’s the right time for you to make the switch.
How Much You Can Save With An EV?
When it comes to deciding between electric cars and petrol cars, money matters. And with EVs, you can save big in the long run.
Upfront Costs: Electric vs. Petrol Cars
Currently, the cheapest EV in Australia is the BYD Dolphin priced from $38,890 (October 2023).
MG Motor also offers one of the more affordable petrol-powered cars – the MG 3 Core at $19,990 drive away.
In terms of what’s most popular, the Tesla Model Y is Australia’s top-selling EV so far for 2023, with just over 14,000 (until July 2023).
Here are some other popular EV models and their costs.
| Car Model | Number Sold (First Half 2023) | $AUD Price (August 2023) |
| Tesla Model Y | 14,002 | From $65,400 |
| Tesla Model 3 | 11,575 | From $57,400 |
| BYD Atto 3 | 6,196 | From $48,011 |
| MG ZS | 1,787 | From $47,990 |
| Volvo XC40 Recharge | 1,596 | From $76,990 |
| Polestar 2 | 1,147 | From $67,400 |
| Volvo C40 | 685 | From $78,990 |
| Kia EV6 | 535 | From $72,590 |
Source: State of Electric Vehicles 2023
The price difference mainly boils down to economies of scale.
Lower demand for EVs means higher production costs. Companies are also recouping their research and development investments, driving up EV prices.
EV TIP: Experts project that by 2024, petrol and electric cars will be priced fairly evenly, making EVs the smarter choice.
TLDR: EVs do have a higher upfront cost than petrol cars (currently), but let’s take a look at the maintenance and running costs.
Cost Per Kilometre: Electric vs. Petrol Cars
Here’s where it gets exciting.
According to the Electric Vehicle Council, powering an EV costs about 70% less compared to a petrol or diesel car.
- Say you drive 15,000 km per year, with a petrol car that averages 9 km per litre, and petrol costs $2.00 per litre: you would spend approximately $3,333 on petrol each year.
- On the other hand, EV costs are measured in kWh. On average, it costs $0.45 per kWh to charge an EV. The equivalent cost in dollars per litre would be about $0.05 per litre.
- It would cost approximately $1,012.50 per year to drive 15,000 km in an electric vehicle at a cost of $0.45 per kWh.
TLDR: EV drivers save over $2,000 per year compared to petrol car drivers.
Not to mention if you have solar panels at home, powering your EV can almost cost you nothing.
You can also save on maintenance costs, and tax rebates, which we’ll discuss in further detail below.
Australian Government EV Tax Incentives
The Australian government offers a range of tax incentives to encourage the sale of EVs. Here’s a breakdown, state by state.
| State/Territory | Incentives | Key Details |
| NSW | Stamp Duty Exemption & $3,000 Rebate | Ends on 1 January 2024. |
| ACT | Full Stamp Duty Exemption & Two Years Free Registration | No limit on the value of the vehicle. |
| Victoria | $3,000 Rebate | Applications close on 30 June 2023. |
| South Australia | $3,000 Subsidy & Three Years Free Registration | No stamp duty exemption. |
| Queensland | Up to $6,000 Rebate | An additional $3,000 is available for some applicants. |
| Northern Territory | $1,500 Stamp Duty Discount & Five Years Free Registration | Under the scheme, 100 residential grants of $1,000 and 80 business grants of $2,500 are available. |
| Tasmania | Stamp Duty Exemption | No limit on the value of the vehicle. |
| Western Australia | $3,500 Rebate | Available for residents and businesses. |
Maintaining Your EV – Advantages
| Topic | Key Points |
| General service cost: ICE (internal combustion engine) vs EV (electric vehicle) | General services for ICE vehicles vary depending on your car make, model and the mechanic you choose.On average, however, most drivers pay about $350 for a logbook service every 10,000km. The cost of an EV service also depends on your car’s make, and model and where you get it serviced.On average, you’ll pay $318 per service every 20,000km. Summary: It’s cheaper to service an EV in the long run. |
| What’s involved in an EV service? | EVs have fewer parts than ICE (internal combustion engine) vehicles, around 20 vs. over 2000 in ICE cars.No need for oil changes, spark plug replacements, or timing belt changes in EVs.Routine maintenance for EVs includes checking tires, brake pads, and suspension components. |
| Shared maintenance items between EVs and ICEs. | Some parts, like electronics systems and transmission gear fluid, are shared between EVs and ICE vehicles. |
| Variability in EV servicing costs | EV servicing costs can be lower due to longer service intervals, condition-based alerts, and manufacturer-specific approaches.Servicing costs vary by brand and model, with some premium brands offering free servicing for a limited time. |
| Battery life concerns | Battery lifespan varies by manufacturer and usage, a key concern for EV owners.On average, most car manufacturers guarantee EV batteries for eight years/160,000km. But this varies greatly for each brand. A new battery costs between $4,000 to $20,000 depending on your car’s make and model. |
A Note on Battery Life & ICE Car Engines
EV Battery Lifespan: Electric car batteries typically last over 100,000 kilometres or more, depending on factors like battery quality and usage. Many come with warranties lasting 8 to 10 years.
ICE Car Engine Lifespan: Petrol or diesel car engines can often go beyond 200,000 kilometres with proper maintenance, sometimes reaching 300,000 kilometres (186,000 miles) or more.
Remember, these are general estimates, and maintenance and usage play a big role in how long your car’s components last.
EV vs ICE Car – What’s Better in the Long Run?
In the long run, EVs often provide greater cost savings compared to traditional petrol or diesel cars, thanks to lower fuel and maintenance expenses.
While the cost of replacing an EV battery can be a concern, many come with warranties to address this.
EVs also tend to have better resale value and may benefit from environmental incentives, making them a financially sensible choice.
The Environmental Benefits of Electric Vehicles
Apart from cost-savings, EVs are much better for the health of the planet. Here are several of the main eco-benefits of switching to an EV.
- Less Pollution: EVs produce fewer harmful emissions, helping to reduce air pollution and combat climate change.
- Energy Efficiency: They use electricity efficiently, requiring less energy to operate compared to traditional cars.
- Quiet and Peaceful: Electric motors are quiet, reducing noise pollution in cities and neighbourhoods.
- Reduced Oil Dependency: EVs run on electricity, reducing our reliance on oil and making our energy sources more stable.
- Longer Lifespan: EVs often last longer due to fewer moving parts, reducing waste and saving money.
- Eco-Friendly Batteries: Efforts are underway to make EV batteries more environmentally friendly from production to recycling.
- Promoting Clean Energy: EVs encourage the use of cleaner energy sources like solar and wind power, benefiting the environment.
In short, EVs are a cleaner and more efficient choice for transportation, benefiting both our health and the planet.
When to Switch to an EV
The decision to switch to an electric vehicle (EV) depends on several factors. Consider switching to an EV when:
- Your Driving Habits Suit EVs: If your daily commute or driving patterns align with the range of available EVs, it’s a good time to switch.
- Charging Infrastructure: Check if there are convenient charging stations available for your regular routes. Increased charging infrastructure makes EV ownership more practical. Also, consider whether you have the capacity for an at-home charger, or you’ll need to rely on public charging stations.
- Environmental Concerns: If you want to reduce your carbon footprint and support clean energy, switching to an EV is a good move.
- Cost Savings: Evaluate the long-term cost savings in terms of fuel and maintenance. Depending on your usage, an EV can be cost-effective over time.
- Incentives and Rebates: Look for government incentives or rebates for EV purchases in your area. These can significantly reduce the upfront cost.
- Resale Value: EVs often have better resale value compared to traditional vehicles.
- Personal Preference: If you’re enthusiastic about new technology and want to be an early adopter, switching to an EV might be the way to go.
Ultimately, the decision to switch to an EV should align with your lifestyle, driving habits, and eco-values.
EV Benefits FAQs
How long does it take to charge an EV at home?
Charging times at home depend on the charger type and the EV’s battery size. Level 1 chargers are slower but suitable for overnight charging, while Level 2 chargers provide faster charging, typically taking a few hours for a full charge.
What is the range of an average EV?
EV ranges vary among models, but many modern EVs offer ranges suitable for everyday use, typically exceeding 322 kilometres on a single charge.
Can I charge my EV at public charging stations?
Yes, public charging stations are widely available for the general public to use. Charging times and costs at public stations vary, with some offering fast charging options for quicker refuelling.