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The scheme offers a reduction of up to five percent on the cost of EV loans, potentially saving buyers approximately $8,000 on a $40,000, seven-year loan. While officially restricted to battery electric vehicles (BEVs), the program also extends to plug-in hybrid electric vehicles (PHEVs), providing a broader range of options for consumers seeking to transition to cleaner transportation.
This initiative is particularly timely, as PHEVs are set to lose their exemption from the Fringe Benefits Tax (FBT) under the Electric Car Discount as of April 1, 2025. By offering these low-interest loans, the government aims to mitigate the financial impact of this policy change and encourage the continued adoption of low-emission vehicles.
For eligible Australians, this program presents an opportunity to invest in sustainable transportation solutions with reduced financial barriers. Prospective buyers are encouraged to consult with participating financial institutions to understand the specific terms and conditions of the loans and to determine their eligibility.
As the nation progresses towards a greener future, such initiatives play a crucial role in making electric vehicles more accessible and affordable, aligning with broader environmental goals and supporting the transition to a low-carbon economy.
Published:Thursday, 29th Jan 2026
Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
