The Federal Budget has been handed down, with measures affecting electric vehicles, home batteries, charging infrastructure and Australia’s energy transition.
While this year’s Budget does not include a major new household electrification rebate package, it does continue the government’s existing push toward batteries, EVs, charging infrastructure and energy market reform.
Heading into budget night, much of the attention focused on reports the government would wind back generous Fringe Benefits Tax concessions for electric vehicles. Those changes were confirmed, although support for cheaper EVs remains in place.
Here’s what was announced.
EV Tax Breaks To Be Scaled Back
The Budget confirms changes to the Electric Car Discount introduced in 2022, transitioning the current arrangements to what the government describes as a:
“permanent 25 per cent fringe benefits tax (FBT) discount”.
Under the new arrangements:
- Eligible EVs costing more than $75,000 will move to a 25% FBT discount from 1 April 2027
- All eligible EVs will move to the discounted arrangement from 1 April 2029
- EVs costing up to $75,000 will continue receiving a full FBT exemption provided the arrangement begins before 1 April 2029
- Existing arrangements will not be affected — EVs already receiving the full FBT exemption will keep it for the life of the arrangement.
The government says more than 100,000 electric vehicles have already been supported through the scheme.
The changes appear aimed at reducing the long-term cost of the policy while continuing targeted support for EV uptake — particularly at the more affordable end of the market.
The Budget also includes:
- $40 million for additional kerbside and regional EV chargers
- A further $40.5 million to support electrification of Australia Post’s delivery fleet
- Support for reforms aimed at increasing uptake of zero-emissions heavy vehicles
Home Batteries And Solar Continue Growing
While there were no major new rooftop solar or home battery rebates announced, the Budget strongly emphasises continued growth in household energy storage and distributed renewable energy.
According to the Budget papers:
- More than 370,000 home batteries have been installed through the Cheaper Home Batteries program since 1 July 2025
- These batteries represent more than 10 gigawatt hours of new capacity
- More than 4 million Australian households now have rooftop solar
- Two million households are expected to have a battery by 2030
The government framed this growth as part of a broader push toward what it describes as “energy sovereignty” – reducing reliance on imported fuels and exposure to global energy price shocks.
Solar And Batteries To Play Bigger Role In Energy Markets
The Budget also flags reforms aimed at allowing household solar and battery systems to participate more directly in Australia’s energy market.
Exactly what form this will take is not yet clear from the Budget overview papers, but the language points toward continued development of systems integrating household batteries and distributed energy resources more actively into the grid.
The government says the changes are intended to improve competition and unlock further renewable energy investment.
Making It Easier For Tradies Moving To Australia
The Government is investing $85.2 million to speed up the assessment of migrants with trades, making it faster and easier for them to enter the workforce. This should help increase the supply of electricians, plumbers and refrigeration mechanics needed to install solar, batteries, hot water and air conditioning.
Energy Security And Electrification
Throughout the Budget papers, the government repeatedly links electrification with improving Australia’s “energy sovereignty” and reducing exposure to imported fuel shocks and global energy price volatility.
Alongside measures supporting EVs, batteries and renewable energy, the Budget also includes broader energy security initiatives including gas market reforms and support for low-emissions fuel production and hydrogen projects.
The Bigger Picture
Overall, the Budget appears less focused on launching major new household electrification incentives, and more focused on continuing Australia’s existing transition through:
- targeted EV support
- rapid battery uptake
- charging infrastructure
- easier migration for tradies
- market reform
- and broader energy system resilience.
For households considering solar, batteries or EVs, the biggest immediate change is likely to be the gradual scaling back of EV tax concessions for higher-priced vehicles.
But the Budget also suggests the government increasingly sees household electrification as part of a wider energy security and economic resilience strategy.
About Kim Wainwright
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The changes to family trusts are going to hit some good, small electrical firms hard.
Finn, I am not sure how many small electrical firms would use a trust structure but I doubt it would be high.
But the question must be asked – why. Surely it is for no other reason than tax minimisation? A company structure would provide the appropriate commercial structure for such businesses.
Trusts used for these purposes have long been regarded as a distortion of the tax system and needing to reined in. But until now governments have not had the courage to do what various tax reform reviews and reports have urged for decades.
I applaud the current government for finally tackling this distortion. If we are going to provide a good level of fairness and equity as well as the good services Australians want we need to tackle the various tax distortions which erode the tax base in our country. There are many. But fewer after last night.
And I am a former business owner myself. And will lose money from other changes. So be it.
“The Budget extends electricity bill relief, with households to receive two further $75 rebates through to 31 December 2025.”
Typo?
Sorry that paragraph was not meant to be there – it’s from last year’s budget – now deleted!
If the government is trying to increase EV ownership the 40 million over four years for charging stations is a pittance compared to the 10s of billions thrown at welfare. 40 million a year would still be inadequate.
And it’s the lack of charging places and the time to charge that is the biggest deterrent to potential EV purchasers.
All the concessions in the world won’t encourage people to drive a car that is guaranteed to increase travel time on long journeys compared to cars with ICEs and then gamble on somewhere to charge at the destination which has chargers available and vacant.
Outside the cities there is a major need for more chargers.
Brian: – “All the concessions in the world won’t encourage people to drive a car that is guaranteed to increase travel time on long journeys compared to cars with ICEs…”
What makes you think petroleum fuels will remain affordable/abundant?
Dr. Chris Martinson, who produces a YouTube podcast channel Peak Prosperity, said:
“But you can see here, starting from about 8 1/2 billion barrels, er, right before the Iran war started, we are now down to facing a thing where we could be down at 7.6 billion barrels by June, just a couple weeks from now. If we hit that, that’s called the Operational stress level. This begins to stress operations. You need full tanks to make full pipes to go into full refinery throughput runs. This becomes a little bit stressed at about this level. And, I would say, pick a number 150, 200 a barrel once we hit that stress level.” https://youtu.be/rzyl42KqofQ?t=316
Global depression by Sep 2026? Tick Tock!