Australia Offers Low-Interest EV Loans for Workers

The Australian federal government has launched a new low-interest loan scheme to encourage the purchase of electric vehicles (EVs), targeting workers earning under $100,000 annually, as well as essential workers such as nurses and police officers. Funded with $150 million from the Clean Energy Finance Corporation and facilitated by the Commonwealth Bank, the loans can offer interest rates up to 5 percentage points lower than standard rates, potentially saving buyers over $8,000 on a $40,000 loan over seven years. This initiative aims to address declining EV sales growth and improve access to battery electric vehicles, amidst an increase in availability of models under $55,000. Climate Change Minister Chris Bowen emphasized that the initiative will reduce ownership barriers, helping consumers save on commuting costs while also benefiting the environment. The new program coincides with the upcoming New Vehicle Efficiency Standard, set to take effect in 2025, which is expected to further stimulate the market for low-emission vehicles. Despite this push, sales of electric cars have seen a downturn, contrasting with the growth of hybrid and plug-in hybrid vehicles.