The Victorian Government should support the uptake of electric vehicles (EVs) through targeted demand-side incentives such as purchase subsidies, stamp duty relief and registration discounts, a report tabled in the Legislative Council has recommended.
The Legislative Council Economy and Infrastructure Committee’s report into the harmonisation of electric vehicles with Victoria’s electricity supply and demand includes 109 findings and 40 recommendations, addressing how the state can accelerate EV uptake while ensuring the electricity system remains reliable, efficient and equitable.
Committee Chair, Georgie Purcell said the inquiry highlights the need for coordinated action across all levels of government to unlock the full benefits of electrification.
“Electric vehicles present a significant opportunity to strengthen Victoria’s electricity system and reduce emissions, but this transition must be carefully managed,” Ms Purcell said.
The inquiry found that incentives would de-risk investment for industry and build consumer confidence to purchase electric vehicles. It also recommends the Victorian Government expand its own EV fleet to improve affordability, accelerate uptake and support the growth of a second-hand market.
A key focus of the inquiry was the rollout of public charging infrastructure. The Committee found that strategically located and affordable charging infrastructure is critical to building consumer confidence and accelerating EV uptake.
The report concluded the current rollout of EV charging infrastructure is restricting consumer confidence and contributing to slower uptake rates in Victoria, with installations not keeping pace with current and projected demand.
Ms Purcell said improving access to charging, particularly for households without off-street parking, must be a priority.
“Access to convenient and affordable charging remains a significant barrier, especially in established suburbs and inner-urban areas,” she said.
“The rollout must be faster, more coordinated and more equitable.”
The Committee found that EVs and associated charging infrastructure can strengthen the electricity system, particularly when charging is aligned with periods of lower demand or higher renewable energy supply.
“We heard evidence of great opportunities to enhance the electricity grid through bi-directional charging, as electric vehicles are energy storage systems on wheels,” said Ms Purcell.
However, the Committee found this requires strategic and coordinated planning across federal, state and local governments, reflecting the fact that EVs sit at the intersection of transport and energy policy.
The report is available to download on the Committee’s website.
