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More Than 112,000 Drivers Claim Labor's EV Subsidy, Prompting Calls to Scrap It
More than 112,000 people have claimed Labor's EV subsidy, fuelling calls to scrap it.
Key points
- The number of claims is far more than the government initially budgeted for the subsidy.
- Economists want Chalmers and Gallagher to rein in spending at the December mid-year budget update.
- Many economists argue household battery and electric car subsidies should be the first policies cut.
Why it matters. Economists argue cutting spending could help the Reserve Bank of Australia fight inflation, so the subsidy's future may be decided at the December mid-year budget update.
As of November 2, 2026, more than 112,000 people have claimed Labor's flagship electric vehicle subsidy, far above the government's initial budget. Economists are urging Treasurer Jim Chalmers and Finance Minister Katy Gallagher to use December's mid-year budget update to rein in spending and help the Reserve Bank of Australia fight inflation. Many argue subsidies for household batteries and electric cars should be the first policies cut.
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More Than 112,000 Drivers Claim Labor's EV Subsidy, Prompting Calls to Scrap It
More than 112,000 people have claimed Labor's flagship electric vehicle subsidy. Uptake has far exceeded the government's expectations. Economists are urging Treasurer Jim Chalmers and Finance Minister Katy Gallagher to end the policy. They want the December mid-year budget update to be used to rein in spending. The calls come as Chalmers looks for budget savings.