One of the privileges of government is the ability to craft policy that encourages positive change.

Good governments are not just impassive observers of the passing parade of life and commerce.

They use their power to shape change.

A Labor government will shape change when it comes to electric cars, which are cleaner and cheaper to run than fuel-powered cars.

Most big global car manufacturers are moving away from the internal combustion engine because they realise electric cars represent our automotive future.

Yet in this country the high cost of electric vehicles, with only five models available for below $60,000, puts them beyond most family budgets.

That is why there are only 20,000 electric cars on Australian roads.

On Wednesday, I will announce two concrete measures that will cut electric car costs and drive increased demand.

First, we will abolish import tariffs on non-luxury electric vehicles now being imported into Australia. For example, the $50,000 Nissan Leaf will be $2000 cheaper.

Second, we’ll encourage further uptake by eliminating fringe benefits tax on electric vehicles provided to workers by their employer for private use.

This will cut the cost of a $50,000 electric car by up to $9000, with the benefit flowing to either the employer or the employee, depending on how they arrange their affairs.

These changes will apply to any electric vehicle up to $77,565 value.

This cut-off point is important.

It will provide global manufacturers a clear incentive to import affordable electric cars in preference to high-end models that are out of reach of most Australians.

In the UK, more than two dozen electric vehicles are available at affordable prices.

Perhaps that is why less than 1 per cent of cars sold in Australian are electric, compared to 11 per cent in the UK and a global average of 4.2 per cent.

In addition, a Labor government will work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy.

This process will examine further measures to increase electric vehicle sales and ensure there are enough recharging stations to meet demand, and critically it will look at policies to encourage Australian manufacturing of electric vehicles or components.

In government, Labor would also examine the feasibility of electrification of the commonwealth car fleet.

These things will benefit Australian households.

That’s the power of good government — if one chooses to use it.

This opinion piece was first published in the Herald Sun on Wednesday, 31 March 2021.