Federal shadow Attorney-General Michaelia Cash confirmed on Wednesday that a Coalition government would scrap the government’s electric vehicle (EV) subsidy if it were elected to government in 2028, claiming it would deliver a $2.1 billion saving.

Even though a federal election is not due for another 18 months or so, the Liberal-National Party Coalition has this week released its plan for budget cuts they say would be worth $31 billion over the four years from 2028-29 – equivalent to the first four years if they were to win the next election.

It includes an end to the home battery rebate scheme, funding cuts to the Australian Renewable Energy Agency, and the removal of the EV subsidy, known as the Electric Car Discount, a fringe benefits tax (FBT) exemption on EVs worth up to $89,332, potentially saving vehicle owners between $3,000 to $5,000 per year.

According to Parliamentary Budget Office modelling reportedly prepared for the Coalition and seen by The Australian Financial Review, scrapping the EV subsidy today would save $2.1 billion across the next three financial years.

And that’s just what federal shadow Attorney-General Michaelia Cash has said the Coalition will do if they retake office.

Speaking on Channel 7’s breakfast show Sunrise on Wednesday morning, Cash accused federal treasurer Jim Chalmers of having a “spending addiction” and called for him to immediately cut the subsidy, adding that the Coalition’s “commitment to the Australian people” was that they would cut the subsidy.

“Australians should be able to buy any car they like, but the Australian taxpayer should not be subsiding it,” she added, possibly forgetting the tax advantages offered for diesel utes.

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