Labor’s smashing victory in SA means EVs tax will be scrapped

Denham Sadler
National Affairs Editor

Labor’s crushing election victory in South Australia will see the state’s controversial electric vehicles road usage tax repealed.

Labor claimed a comprehensive victory over the Liberal government in the South Australia election on Saturday and is set to gain at least five seats from the government.

New South Australian Premier Peter Malinauskas

Liberal leader and former Premier Steven Marshall has already stood down from the leadership and will potentially lose his own seat.

Labor leader Peter Malinauskas was sworn in as South Australian Premier on Monday morning, along with Deputy leader Susan Close and Treasurer Stephen Mullighan.

The new South Australian government is now set to repeal the state’s controversial electric vehicles road usage tax, which was to come into effect in 2027.

The tax was passed into law in October last year, and would have seen EV drivers taxed about 2.5 cents per kilometre they drive.

Despite criticisms, similar EVs tax are set to come into effect in New South Wales, which has a Liberal government, and Victoria, which has a Labor government.

Mr Malinauskas announced late last year that he would repeal the tax if he won the election in March.

“We do that in the name not of just good policy, when it comes to incentivising the tax on EVs, but more importantly good policy when meeting our obligation to a future generation of South Australians,” Mr Malinauskas said at the time.

The Labor Party also pledged a $20 billion pipeline of renewable energy projects through its Hydrogen Jobs Plan.

The new Premier is yet to announce his Cabinet, but his shadow cabinet offers some signs of who will be in power in the state.

Mr Malinauskas himself served as Shadow Minister for Defence and Space Industries and Shadow Minister for Jobs while in Opposition, and Deputy Leader Ms Close served as Shadow Minister for Industry.

The new Premier has also pledged to have a Minister for Innovation and Skills in his Cabinet.

During his time as Premier, Mr Marshall led the creation of Lot 14 in Adelaide, which plays home to tech companies in the state.

The Australian Space Agency now has its headquarters at Lot 14, which also features a Mission Control Centre and the Australian Space Discovery Centre.

The federal government provided $155 million into South Australian manufacturing in the lead up to the election in the form of three large grants under its $1.3 billion Modern Manufacturing Initiative. Mr Marshall was included on the press releases for all three of these grants.

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