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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2022-11-01 Daily Xml
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Bills

Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill

Second Reading

Adjourned debate on second reading.

(Continued from 28 September 2022.)

Ms CLANCY (Elder) (11:02): I am very excited to rise today in support of this bill to reverse the electric vehicle tax. The EV tax imposed by the former government demonstrates the blatant hypocrisy of the South Australian Liberals. How can a party that claims to be in support of lower taxes and protecting our environment seriously in good conscience introduce a tax on the very vehicles designed to reduce our impact on the environment? When they should have been looking at ways to increase the uptake of electric vehicles, the former government chose to undermine them.

Mr Pederick: You're bringing in tolls, are you?

Ms CLANCY: Member for Hammond!

The SPEAKER: Order! The member for Hammond is called to order. The member for Elder has the call.

Ms CLANCY: This levy takes me back to when the Liberal and National Coalition mocked and encouraged the automotive manufacturing industry to leave Australia, a decision with deeply harmful effects to South Australia, including in my electorate, which was once the home to Mitsubishi and Chrysler. Families in my community lost work and skills that had lasted generations.

Good government should be harnessing these skills, supporting these workers and reducing costs to families across the state. Imagine if, instead of finding a way to penalise consumers wanting to buy electric vehicles, the Liberal Party had devoted all that time and energy and attention to instead encouraging a resurgence of manufacturing—at least the components for electric vehicles—in South Australia. What an incredible opportunity the former government had.

When the Liberal Party introduced this insidious tax, the member for Black—then Minister for Environment and Water and now leader of the South Australian Liberals—said the tax was 'necessary'. In a decision that made South Australia the first place in the country to introduce such a tax, he rejected the views of the Electric Vehicle Council and the Conservation Council and said, 'We have to do it. I cannot make any apologies for that.'

Think about that. The now leader of the so-called new generation of Liberals thinks that a tax on electric vehicles is not only a good idea but a necessary one at that. South Australia has some of the largest deposits of copper in the world, a metal in high demand for electric vehicles. The former Liberal government ignored this, ignoring a high potential growth path supplying manufacturing components into the manufacturing sector. South Australia also has an abundance of world-class quality graphite, rare earths and other minerals essential to the construction of electric vehicles.

Instead of devoting time to strategies on how our state could capitalise on this worldwide growth, the Liberals spent time working out how to penalise families, consumers and businesses across South Australia. Those of us now on this side of the house understand the importance of energy efficiency and we all know that countries across the globe, including Australia, are currently very concerned about energy prices.

I wonder how much more energy efficient electric vehicles are than internal combustion engine vehicles powered by petrol or diesel. Well, we can all stop wondering. The United States Department of Energy have studied the differences in energy efficiency between the different technologies. This is their observation: electric vehicles are more efficient than their gasoline-powered counterparts. An EV electric drive system is only responsible for a 15 per cent to 20 per cent energy loss compared with 64 per cent to 75 per cent for a gasoline engine.

They also found that an electric vehicle transmits 65 per cent to 69 per cent of its energy use to the wheels. That rises to 91 per cent through capturing energy from regenerative braking. In contrast, for petrol-powered cars, only 16 per cent to 25 per cent of energy is transmitted to the wheels, with around 70 per cent lost to heat and dissipation.

Why is this important? There are several reasons, but I will highlight just two. Firstly, energy efficiency is crucial to improved productivity across the economy, underpinning wage growth and improvements in the way we live. Burning fossil fuels to run inefficient vehicles that could instead be powered by household solar power is simply not the best use of these scarce resources. Electric vehicles add up economically and environmentally.

Secondly, the greater energy efficiency of an electric vehicle allows for their simpler construction. There is no need for radiators and cooling systems, exhausts and the like. An electric vehicle has literally thousands of fewer parts than an internal combustion engine vehicle. This means an electric vehicle requires far less maintenance and has far lower operating costs than a petrol or a diesel car.

It is not just that electricity, especially from household solar, is far cheaper per kilometre; it is about lower maintenance costs. Of course we all understand the economies of scale for electric vehicles are not as significant as they are for petrol vehicles yet, causing higher up-front initial costs, but the lifetime costs are lower. That is why electric vehicles are increasingly the preferred choice for businesses running fleets, that and the benefits of being a business that is addressing the overwhelming community demand for business action on climate change.

Obviously, many families are not in the financial position to purchase a brand-new electric vehicle. However, more electric vehicles purchased today, whether they be business or fleet vehicles, provide for more electric vehicles on the second-hand market down the line, allowing for more and more South Australian families to see an electric vehicle as a realistic option to bring down their household budgets.

The lower operating costs should be a factor that acts as a positive, but the Liberals put lead in the saddlebags, weighing down the operating costs and dissuading customers from making an investment choice that would be better for them overall. This policy from the former Liberal government failed on so many fronts and, as always, it will be up to a Labor government to clean up the mess.

Our policies are well considered, unlike the poorly designed policies of those opposite. Our policies help consumers, families and businesses; they do not punish them. Our policies encourage investment in resource development, in manufacturing and in innovation. The Malinauskas Labor government will not put roadblocks in the way of the public when they want to make investment choices. Good governments lift; they do not punish. We must and we will scrap this Liberal tax. I commend the bill to the house.

Mrs PEARCE (King) (11:09): We as a state care greatly for our environment and climate and it is clear that we would like to see greater action taken in this space to protect all our amazing regions, to acknowledge we are in a state of climate emergency and to act on it. I am proud that this government recognises this and passed a declaration of a climate emergency earlier this year, because we believe in providing solutions to help reduce emissions, contribute to climate adaption, create jobs, help preserve and restore the natural environment, and encourage good investments in this space.

We have also had a tough couple of years navigating through a pandemic and are now facing the economic impact, as can be seen with the rising cost-of-living pressures. We must act, and we must acknowledge the role that we can play to do better as part of this recovery. One of those ways we are discussing here today. We intend to abolish the electric vehicle levy act that was introduced by the Marshall Liberal government last year. In the midst of a pandemic, the previous government thought it was a good idea to introduce a tax that would impact those who are wanting to do better for our climate.

One may argue that this tax could act as a disincentive for anyone considering buying an electric vehicle, as from 2027 or when battery electric vehicle sales reach 30 per cent of the new motor vehicle sales in SA they would suddenly face charges such as 2¢ per kilometre travelled in a plug-in hybrid vehicle or 2.5¢ per kilometre for any electric vehicle. In fact, just that has been argued and a survey undertaken by the Australia Institute in 2021 showed that seven in 10 South Australians would be less likely to purchase an electric vehicle if a new road user charge were to be introduced. I hope that our swift action on this matter will help to restore certainty for those who are looking at purchasing an electric vehicle.

Apparently, the tax would have raised $1 million each year, although I am still perplexed as to how this would be calculated, as it falls well short of reasonable estimates that consider current uptake trends of electric vehicles. Furthermore, it would have bypassed the federal government without any consideration of how it would affect the state government's allocation of GST funds. It made very little sense, and we plan to do better.

We will be contributing to Australia's first National Electric Vehicle Strategy, being led by federal Minister Bowen, which includes focusing on making EVs more affordable, driving more choice in the market, driving EV uptake, reducing emissions, saving money on fuel, and ensuring that we are taking advantage of local manufacturing opportunities. We understand how important it is to take progressive steps in this area with the federal government by our side.

I must say that I am so pleased to see that the federal Labor government has already made electric vehicles more accessible through the removal of the fringe benefits tax and the 5 per cent import tariff for eligible electric vehicles. There are so many reasons to consider purchasing an electric vehicle. It has been estimated that consumers would save $1,700 per annum by 2030 on the total cost of ownership of electric vehicles over internal combustion engine vehicles. It will also play a vital role in the overall transition from carbon-emitting technologies to a cleaner, greener future that accords with the state parliament's recent declaration of climate emergency.

Passenger cars take up almost 10 per cent of Australia's CO2 emissions. Supporting the uptake of electric vehicles will contribute to South Australia's ability to achieve net zero emissions. I am so pleased to see motorists starting to turn their minds towards EVs. In fact, just the other week I had the honour of representing the Minister for Tourism at the Bay to Birdwood, a very special event—in fact, I would say one of our most iconic motorsport events.

I had the pleasure of being able to present the very first inaugural EV Conversion Award, recognising vintage vehicles with electric conversion drivetrains and power sources that entered the run and were able to make it all the way up to Birdwood. I reiterate my congratulations to Eric, who drives a very sweet 1985 Holden Barina conversion. It is no easy feat to convert a vintage vehicle, and to get it all the way up to Birdwood is quite impressive. I sincerely hope to see many more conversion vehicles at next year's event.

Rest assured, we are doing what we can to keep the incentives rolling. We are supporting the RAA to construct the state's first electric vehicle charging network of 500 charging stations at 140 sites in 52 locations across South Australia. If we are serious about seeing the number of electric vehicles increase, we need to take into consideration the demand for charging systems and infrastructure that will arise. I understand that this network is anticipated to be finalised by the end of 2023, and I am excited to see the rollout of this progress.

We are also progressing nine electric vehicle smart-charging trials to demonstrate how EV charging can be integrated into the grid to release electricity cost savings for all South Australians, just to name a couple of examples. Now is the perfect time to be sharing our vision for the future in this space, and it must be centred around making the transition as appealing as possible to many South Australians looking into investing in electric vehicles. With that, I commend this bill to the house.

Ms HUTCHESSON (Waite) (11:15): I rise to speak in support of the Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill 2022 as I believe we should be striving for more, not fewer, electric vehicles on our roads. 28 September was World EV Day, a day to celebrate e-mobility and EV ownership and an initiative to create awareness about reducing carbon footprint by adopting this green mode of transport. Given we know there is a climate emergency, given we are seeing terrible floods and bushfires as a result, we need to be doing everything we can to work towards a greener future not only for our children but for all the generations that are to come.

On 27 September, I attended the Belair Primary School year 6 exhibition night. The children had prepared projects with the environment as their theme. Many worked on subjects such as climate change, air pollution, ocean pollution, recycling and more. On speaking with these students, it was clear that they understand we need to be doing all that we can to address climate change—and they are children.

The former Liberal state government's EV levy sent a signal to these future generations. It said: 'Once we are on the uptrend of EV uptake, once we are heading down the right road, let's put our foot on the brakes.' Their message was that we should no longer do everything we can to increase EV uptake and mitigate climate change. The levy was due to commence on the earlier of 1 July 2027 or when battery electric vehicle sales reached 30 per cent of total new motor vehicle sales in South Australia. From the levy's commencement, electric vehicle owners would have been charged 2¢ per kilometre travelled in a plug-in hybrid or 2½¢ per kilometre with any other electric vehicle.

The former Liberal government advertised this as a state tax, a substitute for fuel excise. Fuel excise is a federal tax. This was not a like-for-like tax: it was a new tax. The levy represented the consistent policy failures in relation to climate change that we have seen under both the former federal and state Liberal governments. We had a federal government doing absolutely nothing to help mitigate or, for that matter, adapt to the increasingly prominent effects of our changing climate.

One of the students at Belair Primary School had put together a comparison of political parties in regard to their policy position and actions on climate change. The student had prepared a flyer. Under the LNP heading, she wrote: 'The LNP is set on meeting and beating the 2030 Paris target. They want to see more recycling and less waste. They want to create 10,000 jobs in the process. However, research suggests they have done none of this in their time in government.' Even someone as young as year 5 knew that the other government did not know what they were doing.

We had floods, fires and droughts, and they did nothing. On a state level, the Liberals clearly believed that they should do worse than nothing. They thought that they should disincentivise the market and households from buying electric vehicles and doing their part to decrease fossil fuel emissions. Thankfully, the word 'former' now precedes both those governments. I am proud that there is now a federal government that is taking meaningful action on climate change. I am even prouder to be part of a state government that believes in striving for more, not less. I am proud to be part of a government that believes we should be encouraging the market and households to make a difference to the planet and own electric vehicles, not imposing a new tax on them.

My electorate of Waite is uniquely vulnerable to the effects of climate change with our community exposed to high levels of bushfire risk, especially in the Mitcham Hills area. We know that this is only getting worse. Increasingly higher temperatures and lower rainfall in summer are exacerbating fire season conditions. The 2020 SA Department for Environment and Water report card makes it very clear that the risk is only getting worse.

These climate trends are also threatening biodiversity, with these effects altering the distribution and abundance of native species. With endangered species in my electorate such as the southern brown bandicoot, the science says, and my community knows, that we should be acting as much as we can to mitigate the effects of climate change. Action for my community and for the whole of South Australia looks like a world-leading hydrogen plant. It looks like funding our environment protection agencies, like the Conservation Council and Landcare. It looks like axing this tax.

Our government has been invited to be part of the development process of Australia's first National Electric Vehicle Strategy. We are strongly supportive of a federally led approach in addition to our state-based support and initiatives. The EV strategy will be the road map to achieve the following goals: make EVs more affordable, drive more choice in the market, drive EV uptake, reduce emissions, save us money on fuel and ensure that we are taking advantage of local manufacturing opportunities.

Locally, the Malinauskas government is supporting 7,000 electric vehicle purchases with subsidies of $3,000 and a three-year registration fee exemption. We are progressing with nine electric vehicle smart-charging trials to demonstrate how EV charging can be integrated into the grid and to realise electricity cost savings for all South Australians, something that is very relevant at the moment.

We are already seeing other external initiatives, such as the RAA constructing the first electric vehicle charging network of over 500 charging stations at 140 sites in 52 locations throughout South Australia. This is supported by the state government, with a grant of almost $12.4 million. Other private companies are excited that we have changed government. They are excited that we are back on track and heading towards a greener future, excited that we will be repealing this tax.

Planet Ark Power are trialling rapid-charging bays and a battery energy storage system that will store as much renewable electricity as 125 home batteries at the Pasadena Shopping centre. Global company ENGIE are trialling one of Australia's largest vehicle to grid trials at Flinders University, just outside my electorate. In Waite, the City of Mitcham has constructed six EV power stations—two in Blackwood and four in Torrens Park. Passenger vehicles contribute to almost 10 per cent of Australia's carbon emissions. Reducing this is crucial if we are to get to net zero and to protect our environment.

These policies are the momentum we need. This is action. Our bill will repeal both the electric vehicle levy and the requirement for a select committee. It will provide certainty for those looking to purchase an electric vehicle. Let's not slow the momentum. These are the signals we have to send to future generations: we are listening and we are acting. We need policies that make it clear that uptake of net zero should be a floor, not a ceiling. We need policies that show that we are a government that is committed to sustainable development, and we need to demonstrate that we are taking climate crisis seriously and not putting our foot on the brake. I commend the bill to the house.

Mr FULBROOK (Playford) (11:22): I rise to speak in support of the Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill. In considering this bill, I would like to draw attention to how it exposes the folly and the exploitative attitude of the Liberal Party when it comes to taxation. The Liberal Party claim to pursue an agenda of wanting lower taxes. What they say and what they do when in government are two very different things. This is a prime example of them attempting to increase the tax burden on the vast bulk of the population.

The introduction of the levy on electric vehicles by the previous cabinet, of which the opposition leader was a member, is a shining example of the regressive nature of Liberal tax reforms. First, let us remember this was a brand-new tax. No road user tax or any similar form of levy existed at a state level on ordinary motorists. The previous Treasurer and his colleagues, including the member for Black, sat around the cabinet table and decided it would be a good thing to impose a new tax on South Australians. It makes me wonder if any thought was given to how South Australians facing cost-of-living pressures could be assisted on the tax front. If there was, then clearly this was the wrong answer.

Those to my right decided to bring on a new measure that would add to the tax and cost-of-living burden of South Australians rather than ease the pressure. In what many might regard as a sneaky move, the Liberal Party tried to disguise this new tax as simply being a replacement of an existing tax. In announcing it, they said that electric vehicles do not attract the fuel excise paid by motorists using petrol or diesel-powered vehicles and therefore EVs make a lower contribution to the cost of maintaining our road network.

But they failed to say up-front in the budget speech that fuel excise is levied by the commonwealth and that the SA Liberal Party proposal was to create a new state-based tax. Perhaps they were hoping the public might think it was a like-for-like switch for an old tax, but it was simply not a replacement: it was a new tax, a new tax on South Australians that had been dreamt up by the Liberal Party.

It is worth asking if there was any thought given to what the effect would be of imposing a new tax when it comes to commonwealth-state financial relations. As members would know, the commonwealth gathers the goods and services tax from the Australian public via businesses and this is then distributed to state and territory treasuries.

We know that the Commonwealth Grants Commission does a professional job in advising the federal government on how the GST revenue should be carved up and distributed amongst the states and territories. In forming their advice, the Commonwealth Grants Commission uses the principle of horizontal fiscal equalisation. This aims to provide equitable services for all Australians, with GST allocations balanced against a jurisdiction's own revenue-raising capacity and the population that it serves.

Therefore, in imposing a new state-based tax in the form of the EV levy, the Liberal Party made South Australians vulnerable to a reduction in GST revenue. It risked creating a situation where there would be no gain in revenue to the state Treasury to actually spend on roads but simply was a shift of a bigger tax burden onto South Australians because the state generally attracts a larger proportion of GST than the straight per capita division.

Moreover, the fuel excise raised by the commonwealth is not hypothecated to road funding. That was another mistake in the claim of the EV levy being a like-for-like swap. If the commonwealth choose to spend it on road funding, then that is up to them. Such road funding from the commonwealth may or may not affect the GST distribution. This depends on the view of the federal Treasurer of the day, who can exempt it from the horizontal fiscal equalisation calculation. This is therefore another hole in the argument put forward by the Liberal Party.

But there are revenues which are hypothecated to roads. These are existing revenues already being raised from South Australians for the direct purpose of improving our road network. Every vehicle on public roads must be registered. Every driver is required to be licensed. It does not matter whether the vehicle is a battery electric vehicle, a plug-in hybrid, a mild hybrid, a petrol, a gas, or a diesel powered vehicle. It is a level playing field and low or no emission vehicle owners are already paying their part.

Registration and driver's licence fees are hypothecated into the Highways Fund, so saying that EV owners are getting a free ride is a myth as a disguise to hit motorists with a new tax. When it comes to the Highways Fund, EV drivers are paying their fair share along with other South Australians. Vehicle registration and driver's licence fees cannot be avoided no matter what type of vehicle you choose.

We should also consider how the Liberal Party treated motorists with the existing set of taxes when they were last in office. Instead of receiving any tax relief, budget papers show motor vehicle taxes increasing from $634 million in 2017-18 to $755 million in 2021-22. This is an $121 million increase or 19 per cent in just four years. The Australian Bureau of Statistics records similar figures, saying that state-based taxes on motor vehicles increased by $125 million to $773 million from 2017-18 to 2020-21.

It is reasonable to suggest the Liberal Party squeezed more than an extra $120 million out of motorists than was charged in the final year of the former Labor government. While they claim to favour lower taxes, the facts speak otherwise. Another good example is the cost of renewing a driver's licence. In the last Labor budget in 2017-18, fees were set at $215 for a five-year renewal and $430 for 10 years.

In the last Liberal budget, those fees had increased to $240 and $480—a 12 per cent increase over four years when inflation was tracking between 1 per cent and 2 per cent. The fuel excise is a federal tax and so it is telling to consider what the Liberal Party and the National Coalition have done at a federal level on this issue.

Back in 2016, Liberal MP, then federal Minister for Urban Infrastructure, Paul Fletcher drew attention to the commonwealth's revenue-raising capability from the fuel excise and how this would change with the advent of EVs in the national vehicle fleet. Speaking at the Sydney Institute, he highlighted that the driver of a 12-year-old Holden Commodore was typically paying about 4.5¢ per kilometre in fuel excise at the time. The driver of a Renault Megane, which had far better fuel efficiency, was paying 3.4¢ per kilometre, and the driver of a hybrid such as a Toyota Prius would be paying 1.5¢ per kilometre. In contrast, a driver of a full battery electric vehicle, such as a Tesla Model S, would pay no fuel excise.

Mr Fletcher stressed that he was not accusing Tesla owners of taking a free ride at the expense of other taxpayers. He noted that Tesla owners did pay taxes, such as the luxury car tax and state-based stamp duties, but he did raise the issue that the commonwealth would be faced with a diminishing revenue stream as the nation's vehicle fleet changed from petrol and diesel powered vehicles to hybrids and electric. Having identified what he saw as a problem, the Liberal-National Coalition fell short on generating any coherent plans for reform. Just like their many other policy failures, particularly the failure to develop a policy of energy and climate change, the Coalition took the nation nowhere.

There has been a steady decrease in the proportion attributable to fuel excise among road-related taxes and charges at commonwealth and state level. The most recent analysis by the Bureau of Infrastructure and Transport Research Economics, the 2021 Yearbook, lists these taxes and charges by financial year. In 2000-01, some $26 billion was raised in excise, registration, stamp duty, tolls and duties. Of that $26 billion, 53 per cent came from fuel excise. By 2019-20, the most recent year analysed by the bureau, that proportion had fallen to 36 per cent, while the total raised had increased to more than $32 billion.

Interestingly, that analysis also shows vehicle owners were paying nearly $2 billion more in road tolls in 2019-20 than they did at the start of the century, with tolls increasing as a proportion of the total from 2 to 8 per cent. This is another reason South Australian motorists should be relieved that voters made the sensible decision to elect a Labor government, a government which has steadfastly resisted imposing tolls on commuters. That is because it is in Labor's DNA to protect ordinary consumers from unnecessary taxes and charges. We are the party that addresses the issue of cost-of-living pressures. We are unlike those to my right. They have proven themselves to be a party of high taxes and new taxes, as the EV levy has clearly shown.

When the Liberal Party do attempt tax reform, they make a mess of it. Who can forget the debacle of the land tax reforms under the previous government? With the EV levy, the Liberal Party tried to introduce a new tax on South Australians, a tax that would add to cost-of-living pressures. Fortunately, the Labor Party was elected to government in March. This is why I stand here today in support of the legislation. It is the Labor Party that will repeal this unnecessary new tax, and in doing so I commend this bill to the house.

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (11:33): I also rise to speak in support of the Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill 2022. This bill, as you are aware, Mr Speaker, will repeal the proposed new tax by the former Liberal government, which would not only have put a handbrake on the uptake and use of electric vehicles in this state but would have been a handbrake on our local economy.

The levy proposed by the former Liberal government was to commence on the earlier of 1 July 2027 or when battery electric vehicle sales reach 30 per cent of total new car sales in South Australia. From the levy's commencement, electric vehicle owners would have been charged 2¢ per kilometre if they travelled in a plug-in hybrid or 2.5¢ per kilometre for any other electric vehicle. This levy would have been calculated by distance travelled each year and billed as part of the vehicle registration process.

The former government estimated that this would have raised about $1 million in tax each year, but it is unclear how this was calculated, and it falls well short of reasonable estimates considering the current uptake of electric vehicles in this state. The former Liberal government advertised this state tax as a substitute for the commonwealth fuel excise, which is, of course, a federal tax, so it was in no way a like for like; it was simply just a new tax. No doubt, the fuel excise will come under pressure as more EVs come onto our roads; however, this needs to be properly addressed by the commonwealth government.

The former state Liberal government saw the failure of their Coalition counterparts to put together a policy to address this emerging issue as a way and an opportunity to implement new taxes. It is a tax that would have seen raised funds spent in any manner that the Liberal government pleased. The former Liberal government did not consider how implementing a new tax and bypassing the commonwealth government would have impacted South Australians.

This levy would have been a massive disincentive for consumers to take up EVs, particularly as it proposed a distance-based charge for electric vehicles in addition to registration for EVs. Instead, our government wants to encourage the use of electric vehicles. A survey undertaken by the Australia Institute back in 2021 showed that seven in 10 South Australians would be less likely to purchase an EV should a new road user charge be introduced. In fact, it would have been a massive disincentive if it were to be introduced.

I am proud that we are going about abolishing this levy. It will go a long way to encouraging South Australians to take up the use of electric vehicles. We need to be doing all that we can to encourage electric vehicle uptake not only for this generation of South Australians but for future generations, and we need to remove as many roadblocks as we can. That is the priority of this bill. The Malinauskas government will contribute to Australia's first National Electric Vehicle Strategy, as invited by the federal government, where it announced at a national EV summit in August that it was a developing Australia's first National Electric Vehicle Strategy.

How do we make electric vehicles more affordable? The federal government has already made electric vehicles cheaper through the removal of the fringe benefits tax and the initial reduction to a 5 per cent import tariff for EVs. Furthermore, the federal government announced last week, as part of its 2022-23 federal budget, that it will scrap the 5 per cent import tariff. That is a fantastic effort from the federal government to encourage EVs.

The removal of the FBT in real terms means that an employer purchasing an EV attracting, say, a $50,000 price tag will save about $4,700 a year. It is certainly a very positive move by the federal government and one I fully support. I am especially encouraged by the removal of some of these constraints to open the market and encourage more consumers to get into electric vehicles.

One of the issues, of course, is the affordability of electric vehicles, particularly in Australia. It is of utmost interest to me because I would like to see small and family businesses in South Australia take up electric vehicles at much greater rates. What is equally encouraging is that the EV road map will set out the following goals: making electric vehicles more affordable; ensuring we are taking advantage of local manufacturing opportunities, which particularly assists our local businesses; driving choice in the market; and saving money on fuel. All of those are admirable goals.

Further, consultation on the EV strategy is going to explore options for the introduction of fuel efficiency standards. The lack of standards is cited as one of the primary factors impacting the cost and supply of EVs. Rightly or wrongly, manufacturers will prioritise markets that show leadership, and we have seen that across the world with EVs.

The longer Australia takes to demonstrate leadership in this area, the more likely we are at risk of being a dumping ground for older, superseded technology. In addition, there are further barriers that are slowing the uptake of EVs in Australia: choice, in terms of the number of vehicle models in the local market; and cost, particularly with the high up-front cost purchase price of electric vehicles.

In terms of consumer choice and cost concerns, I contrast the situation in the United Kingdom. UK buyers have a choice of 26 low-emission vehicles around the $A60,000 mark, whereas in Australia this number is just eight models. Further, consumer hesitancy is one of the issues where there is an anxiety about electric vehicle range, as well as performance concerns, and the perception of limited charging infrastructure. Growing the number of electric vehicles undoubtedly will require matching infrastructure to deal with increased demand in the charging requirements of electric vehicle users. Charging stations and their locations, in particular, are key to allaying this road trip anxiety and growing EV numbers.

I am very proud that the South Australian government has awarded a grant of $12.4 million to the RAA to construct and operate Australia's first statewide electric vehicle rapid-charging network. Comprising over 500 charging stations at 140 sites, including 52 sites within South Australia, progressing electric vehicle smart trials will demonstrate how EV charging can be integrated to the grid to realise electric cost savings to all South Australians. The RAA plan involves constructing charging networks in supermarkets, car parks, town centres and council-owned sites throughout South Australia, including in regional South Australia.

The Minister for Transport recently attended in the last couple of weeks the opening of the first one of the 18 trial locations in the City West Wilson car park facility here in the city. Plans to roll out the trial are of course going regional, with plans in Renmark, Mount Gambier and other regional centres, which is very important for uptake of electric vehicles.

It is anticipated that smart-charging trials will demonstrate the ways electric vehicle drivers can be incentivised to charge during periods of high renewable electricity generation and low grid demand. That, of course, will support the grid and reduce electricity costs for consumers. It is anticipated that this network is going to be finished by the end of 2023. The government is further encouraging EV uptake by offering 7,000 electric vehicle subsidies of $3,000 and a three-year registration fee exemption.

Some members would remember the formative years of a TV show that I used to watch called Beyond 2000, where we used to envisage in the year 2000 that we would all be in flying, floating cars. We have not got there and it is now 2022, but what we have got is fantastic new electric vehicle technology. We need to do everything we can to support that being taken up by consumers and businesses in South Australia and to see us as a leader in this space. That is why I commend this bill to the house.

The Hon. A. PICCOLO (Light) (11:42): I rise in support of this bill. Back in November 2021, the then Liberal state government passed its Motor Vehicles (Electric Vehicle Levy) Amendment Bill. That act introduced a levy on electric vehicles and a requirement for the Legislative Council to appoint a select committee into electric vehicles. The levy was based on a distance-based charge for electric vehicles as an addition for the registration of an electric vehicle. The levy also was to commence on or earlier than 1 July 2027, or when electric vehicle sales reached 30 per cent of the total new motor vehicle sales in South Australia.

From the commencement of that levy, electric vehicle owners would have been charged 2¢ per kilometre travelled in a plug-in hybrid motor vehicle or 2.5¢ per kilometre for any other electric vehicle. It has been calculated that by distance travelled each year, the charge would be levied as part of the vehicle registration process.

The former Liberal government estimated that this new tax would raise $1 million each year. It is not clear, based on the discussions in this chamber, how that $1 million figure was estimated and also, more importantly, what the cost to the industry would be of having this $1 million tax revenue. The former Liberal government also advertised the state tax as a substitute for fuel excise, which is a federal tax. It is not a like for like tax; it is actually a new tax.

Fuel excise will come under pressure as more electric vehicles come onto our roads; however, addressing this should be led by the commonwealth government. Also, given the price of petrol these days, the last thing we want to do is increase fuel excise. It is creating a huge burden on consumers today, and is one of the major factors behind inflation at the moment, impacting on our economy and the wellbeing of our community.

The former state Liberal government saw the failure of their Coalition counterparts to put together any policy to address this emerging issue as an opportunity to implement their own tax, a tax that would have seen funds raised spent in any manner the state government decided and not actually on investing in this new technology.

As part of that bill, a select committee was to be established in the upper house. If this bill is passed, that committee will no longer be required, as the bill removes the requirement for that select committee. This government, our government, will contribute to Australia's first National Electric Vehicle Strategy, to be led by federal Minister Bowen.

SA Labor's proposed repeal bill, which is before us today, repeals both the electric vehicle levy and the requirement for a select committee. By abolishing the levy, the government will deliver on an election commitment—and, as has been said by members across the chamber, honouring election commitments is very important. We are doing so in this case, as we have also done with numerous infrastructure and other projects in our community. A survey undertaken in 2021 by the Australia Institute indicated that seven in 10 South Australians would be less likely to purchase an electric vehicle if a road user charge were to be introduced.

Importantly, had this tax gone ahead it would have actually been an impediment to the take-up of the purchase of electric vehicles. Apart from the purchase cost itself, there would have been that additional cost on an ongoing basis, introducing a disincentive in a policy area we want to incentivise. That is certainly the view of the community. Looking at current community opinion about what we should be doing to reduce emissions, as well as a whole range of things regarding climate change, the community certainly supports changes that reduce emissions.

While the road user charge was not designed to start for some time, passing this repeal bill is very important because it provides certainty for those looking to purchase an electric vehicle—and I wish to highlight that very important point. The reason for some lag in this nation in moving towards lower fuel emissions and policies to support climate change is that we have had policies that are inconsistent at both the state and federal levels, and that does not send the appropriate signals to the marketplace.

As some speakers have already indicated, for people to invest in a particular industry or product they need to know that the investment environment will be supportive of what they are investing in. Having a policy where you chop and change, particularly as it was at the federal level under the Morrison government, sends out mixed messages, and therefore businesses were not investing in renewables and other industries as they should have been and actually investing in the future. Other nations have been doing so, particularly the European countries, which have been sending out very strong signals about where people should be investing in the future.

It is somewhat sad that, after nine years of federal Liberal government policy in this area, we are now behind the eight ball in a whole range of climate change areas. This bill makes it very clear that we want to incentivise the electric vehicle industry, and it sends a very clear message to businesses that it is okay to invest in that industry because they will get a return on their investment. More importantly, it will drive innovation in this country in terms of improving electric vehicles and reducing their price, because the up-front price is a barrier to people purchasing them at the moment.

I think some other speakers have mentioned this already, but it is very important that, unless we support this bill and give a clear and consistent message to the marketplace, Australia will become the dumping ground of a secondary market. Rather than being a market leader, in this country we will actually follow those vehicles that are less innovative and less productive.

Given that our state—and I think I can say this with some confidence—has led the world in renewable energy, we should also be very clear that our state is very supportive of making sure that we have more electric vehicles on the roads. It is also very important, now that we have a federal Labor government which also sees the merit of this, that federal government policy supports this. The federal counterparts have set a low-emission vehicle target for the commonwealth fleet of 75 per cent of new leases and purchases by 2025. So the federal government itself is actually making it very clear where its future investment will be, and it has also made it very clear to the marketplace where they should invest in the future as well.

Commonwealth Labor has already made electric vehicles cheaper through the removal of fringe benefits tax and the 5 per cent import tariff for eligible electric vehicles. The fringe benefits tax changes mean that a $50,000 electric vehicle will now be up to $4,700 cheaper for someone using a salary sacrifice arrangement. An employer could also save $9,000 a year, an incentive that is critical for fleet buyers and, in turn, the second-hand market.

During the National Electric Vehicle Summit in August, the commonwealth government announced its commitment to develop Australia's first National Electric Vehicle Strategy. The South Australian government has been invited to be part of that development process and is strongly supportive of the federally led approach, in addition to our state-based support initiatives. The electric vehicle strategy will be the road map to achieve the following goals: make electric vehicles more affordable; drive more choice in the marketplace; drive electric vehicle uptake; reduce emissions; save money on fuel, which is actually a major concern at the moment; and ensure we are taking advantage of local manufacturing opportunities.

Very importantly, as I said earlier, it is sending quite a strong and clear message to the marketplace that electric vehicles are the way of the future. If I recall correctly, and my colleagues can correct me, it was only an election or two ago that Mr Morrison, the former Prime Minister, was saying that electric vehicles would be the end of the weekend, because how could you actually have electric vehicles on weekends or for all the weekend-type vehicles?

Well, he was proven wrong, and he was clearly not in line with where the community was at because he is no longer the Prime Minister. Sadly, he did set this country back almost a decade on a whole range of policies, this being one of them. It is not the only one, though; there are a whole range of other policy areas where he set back the nation 10 years. While Australia did not show leadership it meant that consumers were not getting a choice in this country either, because people were not investing in that area.

Some of the barriers in the slow uptake of electric vehicles, sadly, include that there are a smaller number of vehicles available in this country than in other countries because of the inconsistent message given by both state and federal Liberal governments and that there are higher up-front purchase prices. I think that as innovation drives improvements in those vehicles, as we have seen in other areas, prices will fall.

There is also anxiety about electric vehicle range. I must confess that one of my concerns is to make sure that I am fully charged wherever I am going. But there is a rollout of charging stations right across the state, which I know is supported by both the RAA and other companies. We are also undertaking a trial to improve that, but I think we still have some way to go in improving the community's acceptance that it can safely charge vehicles across the state. That said, any policy like that would only be supported if we removed this tax, because we are again sending quite a clear message.

In regard to chargers, a number of councils have introduced electric vehicle charging stations. I know my own council, the Gawler council, have an electric vehicle charging station in the town near the tourism office, and I am aware that other councils are doing the same thing. Electric vehicle charging stations are important from a tourism point of view. If you want people to come to your town and visit, then you provide the opportunity to charge up.

The electric vehicle charging network map, which the RAA are supporting, shows the towns where you will be able to find charging stations, and they will be confirmed shortly. It is also important to note that a number of companies that provide private car parking are already starting to provide electric vehicle charging stations. It is their acknowledgement that this is where the future is in vehicles, and they are now actually going to invest as a result of that.

Probably the saddest part of this proposal by the Liberal Party to introduce a tax, and by the federal Liberal Party to equivocate on climate change policies, is the setback of our country by almost a decade compared with where we could be. We led the world under Premier Mike Rann in terms of renewable energies. We led the nation, we led the world and we set the standard. For that reason, we are now producing most of our energy needs through renewable energies. Sadly, policies of previous state and federal Liberal governments have done damage to that.

With the proper settings in this state, and also at a federal level, this country can not only lead emissions control but also provide innovation that hopefully will lead to manufacturing this type of vehicle in this country. If there is one thing we need back in this country, it is more manufacturing, and this sort of decisive, clear message to industry will support that.

The SPEAKER: Member for Badcoe.

Ms STINSON (Badcoe) (11:56): Thank you, sir. I hope you will be able to hear me over the hail that is falling on the roof of the parliament right now. Put simply, this is a bill that should never have been necessary, but unfortunately it is and here we are. This is a bill that should not have been necessary because this EV tax was not necessary. Not only is this a demonstration of poor policy but it is also a demonstration of poor politics.

I cannot help but think what conversations were going on when this little policy nugget was being thought up. It does seem like something that maybe came from the former Treasurer's mind. You can imagine him trying to convince his team that this was a great idea, a fantastic idea that was going to bring money in, but do not worry about the message it sends, do not worry about the politics of it and do not worry about what the community would actually think about the message being sent by this: that that was a government that did not care about our electric vehicle industry, that did not care about climate change and that thought that it was perfectly sensible to implement a tax on something that we are trying to encourage, that is, electric vehicles and climate-sensitive travel.

What is more stunning is that this policy was thought up on the eve of an election. The bill was passed in November 2021, a mere few months before everyone went to an election. Certainly, for people in my area and across a number of other electorates, including I think some of our more affluent electorates, one thing that was near top of mind, if not top of mind for those voters, was climate change. Yet this was a government—the former government—that decided that it was a really good idea to announce just before an election a policy that was so clearly at odds with what those people stood for and the aspirations they have in terms of tackling climate change.

Clearly, whoever it was who thought up this policy was quite convincing and convinced those who now sit opposite that this was a great idea, that this was a great policy to put to the electorate and implement just months before they went to the polls. Not only is it bad policy, and obviously I will canvass the reasons for that just as fellow speakers on this side already have, but it was incredibly poor politics because those people who care most about climate change were in some of those seats that most violently swung against the Liberal Party at the last election, and I cannot help but think that those two things are connected.

There were a large number of other policies, health among them, that people looked at and thought, 'Gee, that's not what we want to vote for; we want to have a change.' I do think that this was probably one of those issues that was underestimated. The message that it sent to people was a very clear one and it was a message that really jarred with the values of people in those electorates, particularly in metropolitan and inner city electorates.

They say that common sense is not so common, and I really think that this was a demonstration of that because common sense says why would you tax something when you are trying to encourage it. Why would you want a behaviour, like the uptake of electric vehicles, but you would implement a tax—a deterrent to people to take up that behaviour or to take up that action? This policy absolutely flew in the face of common sense and what any person on the street would say is good policy.

Obviously, taxes are necessary, and governments are responsible for deciding where those are implemented and how taxes are raised. They are integral to the way our system of government works and our system of democracy, but it really does not make sense to tax the things that you want to make more popular, unless you do not want to make them more popular, and you would prefer that there is not a strong electric vehicle industry and that there is not a strong hybrid car industry. Then, of course, you might adopt a policy such as this.

One thing I do know is that people in Badcoe are absolutely passionate about the environment. I would say it is among the top few issues for electors in my area. I know that because obviously I get out there and talk to people in my community and I hear from people frequently about the things that are important to them, and I also live in my community and know what those in my neighbourhood think about these matters.

I thought I might take this opportunity to share with the house directly the words of those people in my community who were so moved by this as to get pen and paper or keyboard and laptop together and pen a little letter to their local MP when it came to the EV tax. Each of these letters and emails that I received was from prior to November 2021. I will read them to you in that context.

Of course, what you will hear is that people in Badcoe are passionate about the environment. They are passionate about tackling climate change and they are also passionate about things like trees and green space. My community is very active on those issues and will get up and fight for those things that they believe are right and the EV tax was one of those things that they fought very hard on. This is one letter:

Hi Jayne,

I'm a constituent of Badcoe living with my family in Glandore. I work from home running my own business and climate action is my number one issue. We are outraged to hear that the government is planning to hinder the take-up of clean electric vehicles with an additional tax burden. This is totally against the community's desire to reduce carbon emissions and address climate change. I can't see any logic to this line of thinking. SA has the best track record of the states for creating a clean energy future, but this decision is out of line with all progress we have had to fight so hard for.

I'm really proud of SA's clean energy reputation, especially under Jay Weatherill, one of our best premiers. Please scrap this completely unnecessary tax and instead provide better incentives for solar and battery storage to power our EVs. Currently, the cost of EVs is out of reach for many Australians. Recently, I had to reluctantly buy a second petrol car, but would have preferred an affordable EV but it was too expensive. Let's provide incentives to take up EVs, like all other countries are doing, instead of putting this unnecessary barrier in place.

That is from Mike of Glandore. There is another one:

Dear Jayne,

The first thought that came to my mind when I read the headline that the Treasurer in SA is planning to tax EVs is that it must be true, as some claim, that politicians of the major political parties must be in the pay of the polluting fossil fuel corporations. Emissions from vehicles powered by fossil fuels are not only producing pollution that is a great contributor to climate change but are also responsible for the large number of pollution-related diseases that have increased greatly in recent times.

Responsible governments need to be introducing policies that encourage more people to use public transport and to use vehicles that are not causing pollutions, like electric vehicles, or those generating less pollution, like hybrid vehicles. Only irresponsible governments would try to penalise those who are trying to reduce our carbon footprint. Energy generated from fossil fuels is more expensive and is threatening the public health and contributing to climate change and undermining the viability of future generations.

That is from Andy in Forestville. Here is another one; there is no shortage of them:

Dear Ms Stinson, I am a concerned Australian who is keen to see a cleaner future for our nation. Electric vehicle uptake is inevitable and well overdue. Why would you even be thinking of taxing electric vehicles—

and then there are six exclamation marks after that—

I can only assume that it is for financial revenue—

correct—

Surely the same taxes that exist in importing current cars will just continue with an extra financial burden. Please encourage our representatives across this nation to support keeping our continent clean by supporting the ban on taxes on electric vehicles.

That was from Kate in Glandore. Here is another one:

Hi. I am writing to urge you to oppose any tax on electric vehicles, as proposed by the—

—now then—

South Australian government. It makes no sense to encourage the very necessary uptake of electric vehicles on the one hand and discourage it on the other hand through this tax—

I could not agree more—

The rapid and wide uptake of electric vehicles is a vital component of the fight to reduce greenhouse gas emissions locally, federally and internationally. The Marshall government has, to its credit, continued many of Labor's renewable energy policies, though of course it's up to its usual tricks in other areas. I urge you and your colleagues to stand against this regressive and senseless tax and point out to the government its inconsistency with its other more positive policies on climate change and renewable energy. Best regards, Jack [of Glandore]

Another letter reads:

Hi Jayne, I am a Clarence Park resident—

which I might say used to be in the electorate of Badcoe; it was when this letter was written but is now in the fabulous electorate of Elder—

I just wanted to let you know that I am appalled by the recent state budget decision to apply a road user tax on electric vehicles. This is the most short-sighted, ludicrous money grab for some time. At a time when other countries are incentivising this very obvious green option, the Liberals in general have offered little support, but this is a step further—totally ridiculous. Regards, Bill Saunders [from Clarence Park].

There is one more. It just keeps going:

Hi. Hopefully, as my representative I can trust that you will not support taxing electric vehicles—

yes, you can—

Climate action is an imperative, and supporting the transition to electric vehicles that we can power with green energy is a clear and achievable goal. It would be great if other support for electric vehicles was also implemented, as is being done across the world. Thank you, Wendy [of Forestville]

Wendy, I have good news for you. Yes, you can trust me to not support a tax on electric vehicles. Wendy, you can trust Labor to fight against a tax on electric vehicles, and you can trust Labor that we are doing what we can to tackle climate change with sensible policies, and that does not include taxing electric vehicles.

Those are six letters. I will not tax you any further by going through the other several dozen.

Mr Odenwalder interjecting:

Ms STINSON: I know—I am here all evening. I will not labour the point further by going through the many, many more dozen letters that I received from members of my electorate who are very passionate about this issue, but I really do not think they are alone in that. I think there are certainly many other electorates where, for them, climate change is a top issue. I think we saw that in the state election and even more so in the federal election, where we saw people really vote with their feet on that issue. Indeed, on the east coast we saw quite a lot of Independents get up who were running on very, very strong climate change agendas. Yet we previously had a government that clearly did not see that coming or did not calculate the gravity of the passion that people have, and the determination that South Australians have around climate change, and decided to implement this policy.

So what was this levy? What was this thing that the previous government was proposing that this bill seeks to cancel? Well, the levy was a distance-based charge for electric vehicles in addition to the registration for an electric vehicle. The levy was to commence on the earlier of either 1 July 2027 or when battery electric vehicle sales reached 30 per cent of the total of new motor vehicle sales in SA. I for one hope that comes sooner rather than later.

From the levy's commencement, electric vehicle owners would have been charged either 2¢ per kilometre travelled in a plug-in hybrid vehicle or they would have been charged 2.5¢ per kilometre for any other electric vehicle. This levy would have been calculated by distance travelled each year and billed as part of the vehicle registration process. The former Liberal government estimated that this new tax would raise $1 million a year, but it is unclear how that was actually calculated, and it falls well short of reasonable estimates that consider the current uptake trends of electric vehicles.

The former Liberal government also advertised in their promotions that this state tax is a substitute for fuel excise, which once again makes no sense because that is of course a federal tax, so this was not and never was a like-for-like tax: it was simply a new tax. Fuel excise will obviously come under pressure as more electric vehicles come onto our roads; however, addressing that should be dealt with by the commonwealth government. Put simply, this always was a cash grab and a very poorly thought out one at that.

What does this bill do, this bill that the Labor government is now putting forward? What does it do? This bill will repeal both the electric vehicle levy and the requirement for the associated select committee. Abolishing the levy will deliver on our government election commitment, and I do not know if anyone is aware, but we are pretty serious about delivering on our election commitments. We made a few of them, and we are getting on and delivering them.

Mr Tarzia: The north-south road, north-south corridor, Keolis Downer. We're still waiting.

Ms STINSON: Yes, you're naming a few there that we are on to. We are very serious about delivering on those election commitments. I know in my community I am getting on and delivering the commitments that I made to my community in terms of upgrading infrastructure, in terms of safer roads, and I am very keen to deliver on this one because, as I have said, climate change is a key article of faith really with my community.

Others have mentioned that a survey was conducted by the Australia Institute in 2021. That showed that seven in 10 South Australians would be less likely to purchase an electric vehicle if a new road user charge were to be introduced, and there is a reason why several of my colleagues have mentioned that because that is a pretty persuasive piece of statistics. Seven out of 10 South Australians less likely to purchase an electric vehicle—that would put a real dampener on the uptake of EVs, and that of course flies in the face of exactly what this government is trying to do in encouraging electric vehicle uptake.

It is difficult and there are barriers in the way. People are concerned about cost, as they should be, and I can completely understand that. We want to be making this much easier not harder, and certainly the EV tax would have done that, and certainly the Australia Institute survey, which says that seven in 10 South Australians would be less likely to purchase an electric vehicle with this tax, cannot be ignored.

The levy introduced by the previous government would have been a major disincentive to purchasing an electric vehicle. We know that. While the road user charge would not have commenced for some time, passing this repeal bill now, as soon as possible, will provide certainty for those who are looking to purchase an electric vehicle. We do not want people having any uncertainty or any mixed messages about what our position is on electric vehicles. If you can, we want you to go out and buy one. It is good for the environment. It is good for a growing sector of our manufacturing and car manufacturing sector.

There are average annual savings estimated for electric vehicle adopters for fuel costs and maintenance costs. UBS Global estimates that consumers will save $1,700 a year by 2030 on the total cost of ownership of electric vehicles over internal combustion engine vehicles. This bill will support the uptake of electric vehicles by preserving those financial benefits. Those will be the kinds of savings that people can expect to get not only now this EV tax is being removed as a disincentive but also as a cost that those who do take up this form of transport would have been forced to pay.

Electrifying our transport fleet is a vital part of the overall transition from carbon-emitting technologies to a greener, cleaner future that accords with this parliament's recent declaration of a climate emergency. Passenger cars make up almost 10 per cent of Australia's CO2 emissions—10 per cent! Supporting the uptake of electric vehicles will contribute to South Australia's ability to achieve net zero emissions.

I am really pleased to be part of a Labor government that is putting its money where its mouth is and that it is actually acting where ever we possibly can when it comes to climate change, and there are a number of things that we are already doing. One thing we are implementing is the 7,000 electric vehicle purchase subsidies of $3,000 and the three-year registration fee exemption. In addition, we are supporting the RAA to construct the state's first electric vehicle charging network of over 500 charging stations at 140 sites in 52 locations throughout South Australia.

We are also progressing nine electric vehicle smart-charging trials to demonstrate how EV charging can be integrated into the grid to realise electric cost savings for all South Australians. I am pleased that constituents in my electorate will be benefiting from each of those initiatives. As far as the EV charging network is concerned, as we continue to grow the number of electric vehicle drivers they will undoubtedly demand charging systems and infrastructure which helps to allay road trip anxiety and which delivers charging at the lowest possible cost.

The South Australian government awarded a grant of more than $12 million to the RAA—which is right on the edge of my electorate at Richmond—to construct and operate Australia's first statewide electric vehicle rapid-charging network. That network will comprise 536 fast and rapid chargers across 140 electric vehicle charging stations. That, and several other initiatives—pages and pages of other initiatives—is why I am really pleased to be part of the Labor government. I am pleased to be standing here representing the views of my community and voting with my feet to repeal this unfair tax.

The Hon. Z.L. BETTISON (Ramsay—Minister for Tourism, Minister for Multicultural Affairs) (12:17): If there was ever an example of those opposite being behind the times and out of step with the rest of the world, surely the best example is their November 2021 Motor Vehicles (Electric Vehicles Levy) Amendment Act. While the rest of the world made strategic policy decisions to incentivise the uptake of electric vehicles, the Marshall Liberal government sought to do the opposite—introducing a new tax which was poorly calculated and clumsily executed and which actually disincentivised the purchase of electric vehicles in South Australia.

In Britain, France, Denmark and Japan, amongst many other places around the globe, governments were designing a policy which would not only incentivise the uptake of electric vehicles but which would also place deadlines for the removal of petrol and diesel-powered cars from the new car market. At the same time the new Marshall Liberal government's tax was due to begin rolling out in 2027, in Japan they would be getting close to their 2030 deadline for petrol and diesel cars.

Not only should the previous government have looked around the world to assess whether or not their policy actually made any sense but they could have also taken a look around the rest of their own country to see what policies, incentive trials and strategies were being implemented in other states. In 2018, the ACT was quick to move with an EV strategy. In July 2021, as the South Australian Liberals were developing their policy for a new tax, the Northern Territory was introducing incentives for electric vehicle purchases. At the same time, in 2021 the Tasmanian Liberal government, while not top of the class by any measure, made sure to rule out the introduction of a road user tax for electric vehicles because of their environmental, social and economic benefits.

Even then, the Liberals here in South Australia still did not get it. Perhaps they should have been seeking to represent the constituents who voted them in. They should have listened to what South Australians were saying, that seven out of 10 people would be less likely to purchase an electric vehicle if a road user charge were introduced. This is exactly the opposite effect that the rest of the world was trying to achieve. What this act did was put us completely out of step with not just the rest of Australia but the rest of the world.

While the Liberals were not listening to their constituents, the state and federal Labor governments were. The federal ALP plan, released during the election campaign, Driving the Nation, outlines a number of initiatives to increase EV sales in Australia, including but not limited to establishing a national charging network, setting a low-emission vehicle target for the commonwealth fleet, and removal of the fringe benefits tax and import tariff for eligible vehicles. Previous speakers have outlined in greater detail these very detailed policies driven for the future.

The South Australian Malinauskas Labor government has been invited to be part of the development process of this rollout and is strongly supportive of a federally led approach in addition to our state-based support and initiatives. That is because while the previous state government's excuse for their new tax was a substitute for fuel excise, what they failed to grasp is that fuel excise is a federal tax.

They were out of touch with their constituents, out of touch with other states and out of touch with the rest of the world. They had calculated this new tax poorly and they had not considered how implementing this new tax and bypassing the federal government would have affected the state's allocation of GST. No wonder it has taken the Malinauskas Labor government to stand here today to repeal it. It is very hard to say sorry, but sometimes you just have to do it.

This repeal bill will repeal both the levy and the requirement for a select committee. The bill will provide certainty for those South Australians switching to an electric vehicle or considering it. We know South Australians are considering this. They actually feel very strongly about it. You just heard from the member for Badcoe, who had dozens of letters written to her that said that we have got this wrong. This is exactly the opposite way we should be trying to support people to buy electric vehicles.

The lack of incentives and standards for electric vehicles is cited as one of the factors impacting the supply and cost of EVs. Manufacturers prioritise markets that show leadership. The whole world is talking about this. This is the conversation that is taking place now. Of course, we know how the Liberals feel about manufacturing of vehicles because they killed it here in South Australia. I can tell you that South Australians will never forgive you for that. Every government around the world subsidises manufacturing of their car industry and they know that electric vehicles are the future.

In the UK, where the government has set targets for the abolition of new petrol and diesel cars by 2040, they have introduced incentives for the uptake of EVs. Consumers now have a choice of more than 26 low-emission vehicles under $60,000. That is 26 vehicles in the UK at this price point; the number is only eight in Australia. Because of this lack of action and unacceptable and unappreciated proposals of tax, we risk becoming a dumping ground for old technology. We need to act quickly to get in lock step with the rest of the world.

I want to touch on how this impacts on my portfolio of tourism. Let me be clear: tourism operators and tourists themselves are focused on this state, they are interested and they want to know what South Australia is doing. We certainly know that sustainable transport is a hotly discussed issue. The Tourism & Transport Forum, which is the peak body for the tourism industry, has been heavily involved in the consideration of this new transport technology, whether that be electric or hydrogen vehicles, sustainable aviation fuels or people's love of the potential The Jetsons option of flying cars in the future. They are talking about it, they are showing leadership, they are having the conversation.

Back in 2017, the TTF released its paper 'The Future of Mobility' and in that paper they identified a case study of a Western Australian plan for an electric highway and, in Queensland, an electric superhighway to encourage the uptake of electric vehicles. This is the future. You have to plan for the future, and just as we planned for National Highway 1, which gets us all over our beautiful country, we have to plan for a future that is going to be more sustainable.

In 2020, the Queensland Electric Super Highway was launched, connecting Coolangatta to Cairns, with fast-charging electric vehicle stations, opening up one of the great tourist drives to electric vehicles. In May this year, the New South Wales government identified self-drive regional destinations across the state, and has plans to install 3,500 charging stations across New South Wales. The Tourism Industry Council of New South Wales has commended this initiative. At the very start of 2022, an article in The Australian, 'EV chargers are becoming tourism table stakes' noted that EV charging stations are fast becoming the new swimming pools, where accommodation providers across the country are taking heed of consumer demand for options for electric vehicles.

Dr Jerry Schwartz, Australia's largest private hotel owner, whose portfolio includes the Fairmont Resort Blue Mountains, the Victoria Hotel Melbourne and the Crowne Plaza Hunter Valley, installed EV chargers at several of these rural and city-based hotels as far back as 2016. People are looking ahead and seeing the interest in this, not just for our international tourists but for Australians as well.

In South Australia, we have seen some leadership in this area, particularly in the electorate of Schubert, where business is seeing the benefit to their region of incentivising electric vehicles. Joseph Evans, winemaker and owner of Ballycroft Vineyard and Cellars, installed two EV chargers after a holiday in the US in 2015. He said:

I'd go to touristy places in California and you'd always see EV chargers there, and I thought, 'Yep, I've gotta do that.'

He was looking to the future. Of course, we have some similarities, particularly around the Napa area, with the same tourists we want to attract here to the Barossa. The installation of the solar panels and charging stations have been good for business. He said, 'I've definitively attracted customers who would have never come to my winery otherwise.' That puts us on a map. It says to people, 'If you're interested in sustainable transport and interested in wine, South Australia is the place to come.' We also have people like JET Charge's Tim Washington, who says in the same article:

Having a charging station also lets people know that the EV revolution is coming, and the businesses that cater to them will already be on the front foot.

We know that businesses in Australia and in South Australia seven years ago were already identifying, as a unique selling proposition, having an electric charging station, that they were thinking about the future. They want us to be in step with the rest of the world, and that is why there was shock and awe when those opposite introduced a new tax deterring the uptake of these vehicles.

I am very proud to be a key member of the Malinauskas Labor government and particularly proud for the tourism industry. It made me so surprised that this decision was made. I think we all know that the previous Treasurer was a key participant in this. It seems to fly in the face of exactly who we are in South Australia. South Australia has led in the renewable energy space for decades. I think at one point—and it still may be the case—we were second only to Denmark with the amount of renewable energy, whether it be wind or solar and now, of course, the big battery that we have as well. This is something that we could hang our hat on, where we could say to the world, 'We have done it.'

We have great conditions, a mix between wind and sun. Not only that, we made a decision in South Australia that we were going to be at the front of this. We saw the future, and the future was about renewables. We see that coming through lots of different industries. This is a prime example in transport, where we see the electric vehicle coming on more and more. We know transition not only takes time but opportunity, incentives and also the support and willingness of the government of the day. We know that there was interest. It actually fits our brand. It fits who we are as South Australia because we have already spent decades becoming strong on renewables.

This previous legislation just turned its back. It turned its back on who we are, who we want to be and what makes us attractive not just to tourists but to people wanting to live here. That renewables piece has been important to our brand in South Australia, whether it be the food that we grow, the wine that we make or the beautiful land that we invite people to come to visit. You just have to think to yourself: how did you get it so wrong? How did you not read the room and not look at who we are and lead it forward? I am very proud to be part of a team that is repealing this act to make sure we are going ahead.

I would like to recognise some of the operators who have already supported this with an electric charging station. I particularly want to raise my acknowledgement of the RAA, which has the grant from the South Australian government to do the first statewide rapid-charging network. That means we will have 536 fast and rapid chargers across 140 electric vehicle charging stations. That is not just in the CBD: there are rural, regional and metropolitan services.

We also know that people have had some concerns about travelling longer distances, so the locations include Renmark, Mount Gambier and by our state borders as well. The network will be finalised by the end of 2023. I want to recognise the RAA's leadership in this area and their focus. Of course, they are incredibly involved in the tourism industry. I appreciate their thoughts. They know that tourists are looking for this as well.

We are also pleased that there are grant recipients such as AGL with Wilson Parking, Chargefox, JET Charge with NRMA, JOLT Charge and City of Adelaide with UPark. Since we have gone into government, we have expanded that with some additional recipients who are going to be part of this EV smart-charging trial, and they are ENGIE with Flinders University, JET Charge with Rocland and Planet Ark Power with Foodland Pasadena.

We need not only to think that this is a good idea but to make it happen, and there are going to have to be lots of different ways how we support the transition, but we would not be here today talking about this legislation had not those opposite got it so wrong. I cannot believe that you could not read what the future was offering. I feel it was a mistake that was made. I am so glad we are here to change that. Just like there was a mistake with the 'old mate' campaign, you have to stand up when you have it wrong, and you have to correct it because this is for the future. I support the bill.

Ms THOMPSON (Davenport) (12:33): I rise, too, to support the Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill 2022. This bill will repeal the new tax that the previous Liberal government introduced because this government does not support pointless taxes. When it comes to electric vehicle take-up, we need incentives, not disincentives. The levy is a distance-based charge for electric vehicles as an addition to the registration for an electric vehicle, a penalty for those who want to reduce emissions and save on energy costs. Is this really what we want to be doing right now when people are facing soaring energy bills?

It was put by those opposite that electric vehicle owners would be charged 2ȼ per kilometre travelled in a plug-in hybrid vehicle or 2½ȼ per kilometre for any other electric vehicle—a ludicrous money grab. That is what we have just heard from the member for Badcoe when reading out letters from her own constituents. Why was this tax applied, allegedly as a substitute for fuel excise, which is a federal tax? It is not a like-for-like tax and would contribute nothing to new roads or infrastructure here in South Australia.

It is true that fuel excise will come under pressure as more electric vehicles come onto our roads, but addressing this should be led by the commonwealth government and is certainly no reason for a new state tax. This government is taking the opportunity for South Australia to lead the way rather than imposing taxes that would hurt the growth in EVs. The levy introduced by the previous government would have been a major disincentive to purchasing electric vehicles. Passing this repeal bill as soon as possible will provide certainty for those looking to purchase an electric vehicle.

A survey undertaken by the Australia Institute in 2021 showed that seven in 10 South Australians would be less likely to purchase an electric vehicle if a new road user charge were to be introduced—seven in 10 South Australians who would choose petrol or diesel vehicles over electric due to the tax imposed by the former government. Surely this point alone is enough reason to scrap this tax. So, 2ȼ or 2½ȼ per kilometre may not sound like much, but with the rising cost of living every cent counts.

Abolishing the levy will deliver on another government election commitment because the Malinauskas government is a government that delivers on its commitments and listens to South Australians. This government is not just axing this tax but also encouraging the uptake of electric vehicles. UBS Global estimates consumers will save $1,700 per annum by 2030 on the total cost of ownership of electric vehicles over internal combustion engine vehicles. Electrifying our transport fleet is a vital part of the overall transition from carbon-emitting technologies to a greener, cleaner future that accords with state parliament's recent declaration of a climate emergency.

Our state government is delivering 7,000 electric vehicle purchase subsidies of $3,000 and a three-year registration fee exemption—incentives not taxes; help not additional costs. This government is supporting the RAA to construct the state's first electric vehicle charging network of over 500 charging stations at 142 sites in 52 locations throughout South Australia. The South Australian government awarded a grant of almost $12.4 million to the RAA to construct and operate Australia's first statewide electric vehicle rapid-charging network.

The network will comprise 536 fast and rapid chargers across 140 electric vehicle charging stations in rural, regional and metropolitan service locations. There are plans for 26 sites in Adelaide, including 10 in the CBD. The RAA will start the design and construction of the EV charging network in supermarkets, car parks, town centres, council-owned sites and hotels and motels across South Australia. It is anticipated the network will be finalised by the end of 2023.

The rural and regional sites will provide certainty for EV owners travelling across our state and will kill the myth of the former federal government that the rise of EVs will end the weekend. Additionally, our government is progressing nine electric vehicle smart-charging trials to demonstrate how EV charging can be integrated into the grid to realise electricity cost savings for all South Australians.

As part of these government-supported trials, smart-charging stations will be installed across metro and regional areas, including shopping centres, off-street car parks, hotels, motels and holiday parks. The smart-charging trials will demonstrate ways that electric vehicle drivers can be incentivised to charge during periods of high renewable electricity generation or low grid demand. This will support the grid and reduce electricity costs for all consumers.

Some trials involve vehicles providing electricity back to the grid, acting as batteries on wheels. New business models are also being trialled that will improve charging service availability and improve financial sustainability for operators. This will include tapping into new revenue streams, such as frequency services in the National Electric Market, which will reduce operator reliance on charging service fees for financial viability. In total, there are nine recipients of the $3.2 million grant funding.

The trials will deliver a total of 142 new fast and rapid electric vehicle charging bays for South Australian motorists and attract around $4.8 million of private investment in the development and construction. The SA government will not generate any income from these trials. The trials will provide information on how the smart chargers are used and inform the future direction and infrastructure investment as the charging network expands and develops.

It is fantastic to see that three of these trials are being delivered very close to or in my electorate of Davenport. The first trial is the JOLT trial in Marion, just outside my electorate. This trial will tap into drivers' instincts to seek a bargain at the bottom of the fuel cycle. Using roadside LCD advertising displays and in-app notifications, JOLT will promote low-cost surge pricing to activate consumer behaviour to 'turn in and save' during incentivised times.

The key objective of this trial will be to quantify the impact of charging incentives on consumer behaviours and demonstrate the role that EVs can play to balance electricity supply and demand loads during the day. The second local trial is being run by ENGIE in three of the car parks at Flinders University, within my electorate of Davenport. This is one of Australia's largest vehicle to grid trials, with ENGIE integrating 22 managed smart-charging stations into a campus-level virtual battery to demonstrate how EVS could be harnessed to support SA's electricity system during peak demand periods.

The final trial is with Planet Ark Power at the Foodland Pasadena Shopping centre. This trial includes the installation of 14 fast and rapid-charging bays and a battery energy storage system that will store as much renewable electricity as 125 home batteries. The trial at Pasadena will incentivise EV drivers to enter the shopping centre to boost their charge, which could be through pricing, length of charge or validation of charging reward.

The smart chargers will fully charge an electric vehicle in 15 to 45 minutes as a customer enters the shopping centre and activates the EV boost—just enough time to complete a shop at Foodland, browse the local specialty shops or grab a coffee or lunch. Once completed, the battery storage system here will be the first of its kind built at a South Australian shopping centre. These are three very exciting trials and I encourage all EV owners in the south to utilise those facilities and motorists across Adelaide to look for similar trials underway in their communities.

There are over 6,500 vehicles in the SA government fleet. In total, these vehicles travel around 110 million kilometres, equating to 21,000 tonnes of CO2. There is a requirement for SA government agencies to transition to plug-in electric vehicles if they are cost effective on a total cost of ownership basis or if the additional cost can be managed by improving fleet utilisation. The benefits of the orderly transition of our government fleet to electric vehicles will be twofold. It will meaningfully contribute to lowering our state's carbon footprint and help us to achieve net zero emissions. Additionally, it will help saturate the second-hand market with electric vehicles, reducing a lack of availability and reducing the up-front cost for people looking to purchase an electric vehicle.

This is the direction our government needs to take to secure a better future for South Australians: incentives not taxes. I commend this repeal bill to the house.

Ms SAVVAS (Newland) (12:43): I am very pleased today to stand to discuss the benefits of repealing the EV levy act and corresponding select committee into electric vehicles. This is something that has been raised with me on a very regular basis by constituents in the Newland electorate, particularly the way that the levy and equivalent provisions in the federal parliament have made the transition to electric vehicles inaccessible for working people.

A survey undertaken by the Australia Institute in 2021 showed that seven in 10 South Australians would be less likely to purchase an electric vehicle if a new road user charge were to be introduced. This is a major disincentive to purchase an electric vehicle and in many ways has made it entirely inaccessible for the majority of South Australians. Repealing this levy will provide certainty for those future planning, those wanting to transition to an electric vehicle in the future.

The levy introduced by the previous government would have been a major disincentive to purchasing an EV. We, of course, are putting our money where our mouth is with this bill and have made the incredibly important decision to also electrify our transport fleet. While the road user charge will not commence for some time, passing this repeal bill as soon as possible will provide certainty for those looking to purchase an EV.

Electrifying our transport fleet is a vital part of the overall transition from carbon-emitting technologies to a greener, cleaner future that accords with the state parliament's recent declaration of a climate emergency. I would like to acknowledge both the Hon. Rob Simms in the other place and the Minister for Climate, Environment and Water for their role in that decision, a no-brainer for our new government and one that is sadly overdue.

We know that passenger cars can make up almost 10 per cent of Australia's CO2 emissions. Supporting the uptake of electric vehicles will contribute to South Australia's ability to achieve net zero emissions. There are over 6,500 vehicles in the SA government fleet, and this will have a significant impact on achieving that target. In total, these vehicles travel around 110 million kilometres, equating to over 21,000 tonnes of CO2.

Not too long ago, I was in local government when we made the big decision to commence electrifying our local government fleet, and it is important to acknowledge what an impact that has not just on the state's environment but also on the purchasability of EVs, whether that be second-hand or at a government auction like Pickles or equivalent.

A resident named Eleanor actually came to visit me a few weeks ago to discuss exactly this, asking whether government vehicles would be transitioning or not. She is a state government employee and, although due to previous levies and taxes not able to buy an electric vehicle of her own, would like to contribute in some way by at least using EVs while on shift. Eleanor is just one of many residents who have contacted me regarding the inaccessibility of EVs for regular people, having emailed me saying:

Electric vehicles are still out of reach for many people. We need to incentivise EVs to bring down the cost and make the new technology affordable and accessible for more Australians.

I could not agree more.

There is a requirement for SA government agencies to transition to plug-in electric vehicles if they are cost-effective on a total cost of ownership basis or if the additional costs can be managed by improving fleet utilisation. The benefits of an orderly transition of our government fleet to electric vehicles would be twofold. Firstly, it will meaningfully contribute to lowering our state's carbon footprint and help us achieve net zero emissions. It will help saturate the second-hand market with electric vehicles, reducing a lack of availability and reducing the up-front cost for people looking to purchase an electric vehicle in the future.

I would also like to make mention today of our EV charging network, noting the inaccessibility for those who would like to purchase an EV and use a public charging station. It is a barrier that I have only very recently become familiar with, when making the decision whether to purchase either a hybrid or electric vehicle of my own. I, like many others, realised there was an additional barrier, because I rent the property that I live in.

If you do not have the ability to affix a home charger for an electric vehicle in a garage, there is a further layer of inaccessibility, and it very much acts as a disincentive for those wishing to purchase an EV. I actually did make the decision not to purchase an EV, because of the lack of charging stations and the inability to charge at home in my garage, and had to go with a hybrid vehicle despite very much wanting to transition to electric vehicles.

I believe this is a significant barrier for renters, particularly without the provision of widely accessible public charging stations in the metropolitan area. It is another thing that I have been contacted about significantly in the last few months, with residents asking whether there were a number of electric charging stations in our local area, whether there would be more coming soon and whether there would be certainty about where they would be located so that people could future-plan their own decisions in terms of purchasing vehicles.

In some ways, it is very much a chicken-and-egg scenario, but I do believe that uptake cannot and will not increase without an increase in public charging stations. That is why I am so very proud of the partnership with the RAA to construct and operate Australia's first statewide EV rapid-charging network. This network will comprise 536 fast and rapid chargers across 140 electric vehicle charging stations in 52 rural, regional and metropolitan service locations. While the exact locations are yet to be finalised, I understand there are now plans for 26 sites in Adelaide, including 10 in the CBD.

Personally, I am looking forward to finding out where the east and north locations may be, but I am particularly excited to see the provision of a charger in the nearby north-eastern hills at Woodside, where I have many friends and family. Noting a lack of conventional petrol stations on the hills route down Chain of Ponds, I hope this will provide an attractive alternative for those in Woodside, Birdwood and surrounds on the way down to Tea Tree Gully.

The RAA will start the design and construction of the EV charging network in supermarkets, car parks, town centres, council-owned sites, hotels and motels throughout South Australia. It is anticipated that network will be finished by the end of 2023. I very much look forward to it and hope to see the provision in the future of a greater range of charging stations around the Tea Tree Gully area, making it more accessible for residents in my local community to access electric vehicles and also future plan their vehicle purchases moving forward. I commend the bill.

Mr ODENWALDER (Elizabeth) (12:51): I also rise to speak in support of the Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill. As the member for Ramsay outlined quite succinctly, the Liberals opposite really have failed to read the room here. We have a very good track record in this state of pursuing renewable energy and, if I understood the member Ramsay's contribution correctly, we are second only to Denmark in our use of renewable energy.

We should be very proud of the reforms made by the Rann government and carried on and expanded through the Weatherill government. This is a reason for South Australia to be proud. We did have the interregnum, where we went backwards for four years. We saw the introduction of a bill to raise a new tax on electric vehicles, a completely regressive tax on new vehicles, but thankfully we now have a Malinauskas Labor government in this state that is willing to repeal that bill and further encourage the use of electric vehicles in the state.

In passing, I read with interest the other day Minister Koutsantonis—and he, of course, can speak for himself—hinting at plans to overhaul South Australia's public transport system. These are not concrete plans yet; these are aspirations. I think once you encourage the uptake of electric vehicles and the installation of charging stations, as the member for Newland has outlined, then you really open the way and reach a tipping point eventually where electric vehicles are very much the norm and you can then switch to enabling the public transport fleet to go fully electric. I think that is something that we should strive for, and I think the minister did hint at that in his comments to The Advertiser on 27 October. To quote the minister, he said:

We want more infrastructure in South Australia and we are always going to be chasing more resources from the Commonwealth government—

This is in the context of the federal budget—

and the challenge for us is to have projects ready to go.

In other jurisdictions, they’re spending money on bus fleets and passenger rail, so we’ve got to make sure we have opportunities to encourage more public transport use.

He goes on to say that we want to partner with the commonwealth in pursuing these aims. The minister went on to say:

…public transport is a game changer. We can keep spending billions and billions and billions of dollars on road infrastructure, (but) the truth is if people catch trams, trains and buses, everyone saves—we save money on taxes, we save money on insurance and carparking.

Of course, he also said he would absolutely like to see more investment in decarbonisation of our public transport system, and I think that is the future.

What we are doing when we encourage the uptake of electric vehicles is we encourage the installation of electric vehicle charging stations and make that very much the norm across the metropolitan area and across South Australia. We can then begin the project of decarbonising properly our public transport system. Ultimately, what we really want is people using public transport.

I see individual drivers driving electric vehicles—as well as self-driving vehicles, which is a whole other topic—as really a stepping stone into what we really should be doing, and that is encouraging more people into mass transit. It makes sense for the environment, it actually makes sense in terms of infrastructure spending, and I think that is something we very much need to be encouraging.

But of course those opposite do not agree. They also claim to be the party of good economic management. This has been proven to be wrong time and time again, as you know, Deputy Speaker. They claim to pursue an agenda of wanting to lower taxes, but really what those opposite have done during the interregnum was to increase the tax burden on the vast bulk of the population. The introduction of the levy on electric vehicles that this bill seeks to repeal—and which was a decision of the cabinet, I should say, at which time the opposition leader, the member for Black, was a member—is an example of the regressive nature of tax reforms that those opposite seek to pursue.

This is a brand-new tax. As other speakers have said, this was a brand-new tax. Let people make no mistake about that. No road user tax or any similar form of levy existed at a state level on ordinary motorists before the original bill was brought to parliament. The then Treasurer, Rob Lucas, and his colleagues—including the now opposition leader, the member for Black, and including the now transport spokesman, the member for Hartley—sat around the cabinet table and decided it would be a good thing to impose a new tax on South Australians. Not only is it a new tax, it is a tax on electric vehicles. It is a tax on people pursuing what this state is very widely known for, and that is the pursuit of, ultimately, carbon-free transport.

But did those opposite give any thought to how this might impact on South Australians? I do not think so. Those opposite decided on bringing in a new measure that would add to the tax and the cost-of-living pressures on South Australians, not ease the pressure. We have seen over recent weeks more and more pressure, particularly on fuel prices, across the board in terms of power prices—an increasing burden on South Australians.

It was something of a sneaky move, I think. As others have pointed out, it was something of a sneaky move that the Liberal Party, those opposite, tried to disguise this as a replacement for an existing tax. I say again: this was a new tax. It was a tax that did not exist before and it was a tax that the then Treasurer, the now opposition leader, the now transport spokesman and all those sitting opposite who were in the cabinet room—and, indeed, who were in the party room—during the last parliament, supported.

In announcing this measure, they said that electric vehicles do not attract the fuel excise paid by motorists using petrol or diesel-powered vehicles; therefore, EVs would make a lower contribution to the cost of maintaining our road networks. But what the then Treasurer failed to point out was that fuel excise is levied by the commonwealth, and that the proposal put forward by those opposite was to create a new state-based tax.

I think they were hoping that members of the public would be duped by this—that they would see it as a like for like and a perfectly reasonable outcome. But as we saw from the emails received by all of us, and those read out by the member for Badcoe, the members of the public were not fooled by this. It was a new tax. They saw it as a new tax. They knew that no such tax existed before the introduction of that bill, and they saw through what those opposite were trying to achieve.

As you know, Deputy Speaker, the commonwealth gathers the goods and services tax from the public via us purchasing goods and services, of course, and then distributes it to state and territory treasuries. As the member for Playford has outlined, the Commonwealth Grants Commission uses the principle of horizontal fiscal equalisation. This aims to provide equitable services for all Australians, with GST allocations balanced against an individual state or territory's own revenue-raising capacity—taking, of course, population into consideration.

Therefore, imposing this new tax—and I say again that it is a new tax, in the form of the EV levy—those opposite made South Australians vulnerable to a reduction in GST revenue. They were not up-front about this at the time. They tried to sell it as a like for like and they tried to sell it as a simple alternative to existing taxation measures: it was not.

The DEPUTY SPEAKER: Member for Elizabeth, would you like to seek leave to conclude your remarks later?

Mr ODENWALDER: I will conclude if I have time, sir. I support the bill. This is a new tax. I support the bill and commend it to the house.

Debate adjourned on motion of Hon. J.K. Szakacs.

Sitting suspended from 13:00 to 14:00.

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