Government-backed loans are making electric vehicles (EVs) more accessible to people earning less than $100,000 annually. 

Backed by $150 million from the Clean Energy Finance Corporation (CEFC), the Commonwealth Bank will offer discounted loans for EV purchases, with interest rates up to five percentage points below standard rates.  

The scheme targets both new and used EVs priced up to $55,000, as well as home charging equipment. 

Essential workers such as teachers, nurses, and police officers will be eligible for the loans, regardless of income level.  

According to government projections, these reduced interest rates could save buyers over $8,000 on a $40,000 loan over seven years, alongside significant reductions in petrol expenses. 

The loans are part of broader efforts, including the removal of the Fringe Benefits Tax on leased EVs and the 5 per cent import tariff, to bolster the adoption of low-emission vehicles.  

The announcement coincides with the rollout of a New Vehicle Efficiency Standard, which mandates car manufacturers to lower the average emissions of vehicles sold. 

The Electric Vehicle Council's recent report highlighted a 150 per cent surge in EV sales over the past year, with EVs now accounting for nearly 10 per cent of new car sales.  

However, market availability remains an issue, with only a fraction of EV models priced under $55,000 qualifying for the loan scheme.

While popular models like Tesla’s Model 3 and BYD’s Seal and Atto 3 meet the criteria, broader choices may be needed for this initiative to achieve its full impact.  

Critics argue that the $55,000 cap excludes many EV models, limiting consumer choice. 

The reliance on bank participation has also drawn scrutiny, with some questioning whether private lenders can adequately address the demand.  

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