Are Costs and Charging Putting You Off an Electric Car

Posted on 1st Apr 2025 by CarTakeBack Posted in: In The Know

With around 250,000 electric vehicles (EVs) now on the road (300,000 including plug-in hybrids) and 1 in 10 car sales now being an EV, it might seem that Australian car owners are generally keen to get onboard with ‘clean’ transport. However, despite the positive figures, a lot of motorists still have some significant practical reservations about purchasing themselves an EV.

The main concerns proving to be a barrier to committing to an EV remain costs and charging. Specifically, the cost of purchasing an EV, the distance it can travel and the availability and convenience of charging points.

EV charging sign

While only the Australian Capital Territory signed an agreement at the UN Climate Change Conference in 2021, to end the sale of combustion powered vehicles by 2040, the rest of the country is under increasing market pressure. Apart from the public demand, so many of the countries who did commit to the deadline, produce the vehicles we buy, including China, Japan, the U.K., South Korea, Germany, Italy, France and 12 U.S. states. A Climate Council report in 2024 also recommended petrol and diesel vehicles be banned from sale by 2035.

So, to facilitate the inevitable ban, EV cost and charging issues are a high priority for the industry and indeed the country. While here at CarTakeBack we’re not in a position to subsidise your next car purchase, or install you a free charging point! We can at least give you a realistic, current overview of these issues and point you to the best advice on the web…

Cost of buying and running an electric vehicle

While the majority of EV models are still more expensive than their traditional-fuelled counterparts, the last year has seen more affordable models being introduced into the market. At the time of publishing, the cheapest EV available in Australia is the BYD Dolphin, which can be purchased for just under $30,000. The choice of EVs is rapidly increasing and the market is already far more competitive than people predicted – an equivalent car model such as the Toyota Yaris is actually over $30,900 for the entry-grade model.

The initial pay-out for the majority of EVs will still be a barrier to many car buyers. However, grants and the relatively low running price means some people feel the price is balanced out.

Tax

There are rego and stamp duty concessions available for EVs across the country, but each territory is different. For instance in the Northern Territory there is free registration for new and existing EVs and a stamp duty concession of up to $1,500 – so we’re talking significant sums that can make a real difference when it comes to purchase and running costs of an EV.

The Government’s Green Vehicle Guide has links to each state/territory’s EV concessions information.

There are also fringe benefits tax exemptions for electric cars. The Australian Taxation Office website is the best place to find out what applies to you.

EV Car Dealership

Buying second-hand

As time goes on, there will of course be more second-hand EV options available on the market and this may be a more affordable and/or viable way to dip your feet into EV ownership. However, make sure you do your research on the model you’re purchasing – EV tech has come a long way in a short period of time and it may be a false economy if you are buying an old battery.

Grants and subsidies

If you are keen to move over to a brand new EV, make sure you keep an eye on scrappage schemes and the government subsidies that could make your switch more affordable. The majority of early schemes have now closed, but if you live in Western Australia, the local government has extended their Zero Emission Vehicle Rebate Scheme providing applicants with a $3,500 rebate after purchasing an eligible vehicle and submitting an application form. You can find more information on the Department of Transport website, but don’t delay as the extension is only until midnight on 10th May 2025.

There are also government grants available to cover or reduce the cost of EV charging points. Again, the funding available is different across the country. The Northern Territory has an EV Charger Grants Scheme for installation, which includes 100 residential grants to a value of $1,000. While the Western Australia Government is encouraging EV uptake by co-funding up to 50 per cent of the cost of EV charger installations.

It’s likely there will be more subsidies and grants made available over the next few years to help the industry and consumers make the switch to EVs. Check your local government’s transport website for their current offers.

Line of EV charging stations

Charging an electric vehicle – availability

There doesn’t seem to be a definitive, up-to-date figure, but reliable sources do agree there are now nearly 3,000 public EV charging points throughout the country, including over 1,000 fast-charging sites.

The Electric Vehicle Council states it is confident the vast majority of Australia will have access to public EV charging infrastructure before 2030, based on the continuing increases in funding. They say that not only does 80% of charging generally take place at home, but the public infrastructure is rapidly expanding with private companies, and local, state and federal governments investing in and co-funding the construction of this expanding charging network.

However, the Electric Vehicle Council does also recognise there is more work to be done, particularly inland of our coastal regions. That is a feeling more frequently reflected in public forums. A study of more than 1000 people conducted by YouGov, found 71 per cent of Australians considered EV charging inadequate in their local area.

While subsidies and rebates to help establish home charging seem to be drying up, investment in public infrastructure is happening. The Australian Renewable Energy Agency has recently announced $2.4 million for EVX Australia to install 250 kerbside chargers providing 500 charge points, across metropolitan and regional areas in New South Wales, Victoria, and South Australia.

Undoubtedly, there’s still a lot of work to be done on the infrastructure supporting the use of EVs and as well as the number of charging points, EV owners have also suffered issues related to location, access and payment.

Where are Australia’s EV charging points?

With rural areas still having very limited access to chargers, many EV drivers still fear being left without charge on long journeys, but there are several websites and apps dedicated to making your charging needs as easy to plan as possible. We like PlugShare, which gives easy-to-access, real-time information on charging point coverage and compatibility across Australia.

PlugShare map of Australia's EV charging points

Charging an electric vehicle – range and degradation

Those who can afford to purchase a new EV, and may even be completely happy with the availability and ease of charging, still have concerns over the range current models can offer and the whole life of the battery.

Range of EV batteries

The reason charging availability has remained such a significant issue is partly down to the physical distance one full charge can take you, otherwise known as an EV’s ‘range’ and the so-called ‘range anxiety’ EV drivers can feel. While there is still progress to be made, these figures have improved massively over the relatively short time EVs have been available.

When we published the first version of this blog a few years ago, the average number of kilometers an EV could travel in a single journey was around 150, with the ‘top end’ Tesla S boasting over 640km on a single charge, which of course is still an impressive figure today! According to experts, the average range of an EV is now 380km, which also takes into consideration real life factors such as heavy loads, changing speeds and hilly terrain, which manufacturers’ advertised range figures don’t.

If and when you choose an EV, while new battery tech is generally good, be sure to look into the real life range mileage figure and ensure it will suit the journeys you will be doing most frequently.

Driver in an electric car

Degradation of EV batteries

Every type of battery degrades over time. But rather than worrying your EV is going to mimic your mobile phone, you can be assured that, as long as they are treated correctly, most modern lithium-ion units are likely to last the lifetime of the car.

When EVs first entered the mass market many manufacturers specified an 8 year battery warranty, however, data so far has shown the majority of these batteries are outperforming that prediction. Manufacturers keen to offer extra reassurance to customers offered extended warranties on their EV batteries from between 160,000 to 240,000 km. Most also include a maximum allowable capacity; so if their function drops below 70% during the period of the warranty, you’ll receive an automatic replacement. However, not all car models come with a clearly stated maximum degradation threshold from the manufacturer, so it’s worth checking this detail before making a purchase.

There are a few simple things you can do which will have a significant effect on battery life, such as avoiding charging beyond 80% or below 20%, which some EVs manage automatically. It is advised to avoid frequent rapid-charging and in general keeping your battery cool (something to bear in mind if you don’t have sheltered parking).

More good news is that EV tech is improving all the time and there is some great advice out there whether you’re looking after an older EV or a brand new purchase. We’ve also written a blog on charging and driving your EV efficiently.

EV Car Battery

Recycling electric vehicles

Apart from the practicalities we’ve covered, some people’s concerns about EV adoption take them right up to the car’s end-of-life and the issue of recycling. The reality is that while the industry still has a long way to go, EV batteries can and are being recycled effectively and CarTakeBack are already involved in this in several countries.

We continue to invest in training our vehicle recycling partners in how to safely handle EVs and hybrids, as well as sitting on several research boards to support and advise on future end-of-life EV developments, including work with the innovative Faraday Institute.

For now, lithium-ion batteries would have to be exported for recycling, but there is fast progress within the industry and more facilities being established that can safely manage the main stage of processing these batteries. The progress we’ve seen, even in the last twelve months, is great news for the industry as a whole and for members of the public concerned about the whole-life impact of EVs.

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