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National

Concerns Canberrans on lower incomes will be left behind under ACT's new electric vehicle strategy

Canberra cleaner Margaret Limn says her children know that money is tight. (Supplied: Margaret Limn)

Single Canberra mother of three Margaret Limn recently had to drop clients from her small cleaning business in order to spend more time looking after her family.

She says that means her weekly income of $1,600, of which $750 is immediately taken out to pay her rent, has had to stretch.

"My two teenage boys are growing all the time so they take it in turns to see who needs shoes or clothes or things like that," she says.

Margaret earns $1,600 per week, of which $750 immediately goes to rent. (Supplied: Margaret Limn)

Margaret says her kids know things are tight and sometimes volunteer to go without something new.

Although Margaret describes herself as environmentally conscious, she feels as though enviro-friendly measures are sometimes skewed towards those in a "higher tax bracket".

"I do all the small things that — I can recycle and repurpose stuff as much as possible, and I try to find budget-friendly ways [to] help the environment," she says.

"I think it's becoming more accessible and less of a trend."

'Feels like they are trying to edge the poorer people out of town'

But Margaret says the recent announcement that the ACT will ban the sale of new petrol cars by 2035 has left her concerned, as electric vehicles are unattainable for her at their current price.

"With this [announcement] and the rental market in Canberra, it sort of feels like they are trying to edge the poorer people out of town, and realistically that doesn't make any sense because who is going to do the cleaning?"

Margaret says she because she has no credit rating, getting financing for a car is not achievable.

The ACT government's recently announced 2022-2030 Zero Emissions Vehicles (ZEV) Strategy also includes a "long-term" plan to overhaul how Canberrans will pay their car registration, with fees to be based on emissions rather than weight.

"I find it really frustrating — people own their own homes so they have equity, they easily get loans if they need — [but] I have basically no credit rating and I imagine many other people in my situation or worse wouldn't be able to get financing for a car."

ZEVs unaffordable for low and moderate income earners, says ACOSS

Australian Council of Social Service (ACOSS) acting CEO, Edwina MacDonald, says that electric vehicles aren't just out of reach and unaffordable for low-income earners but moderate-income earners as well.

Ms MacDonald says when considering policy like the ACT's electric vehicle strategy, governments need to ask questions over how the legislation will affect broader equality in their states and territories.

ACOSS acting chief executive Edwina MacDonald says people on lower incomes could be penalised by charging registration based on emissions. (ABC News: Matt Roberts)

"We need policy addressing the impacts of climate change and also making sure we're not increasing inequality but actually policy that will reduce inequality and poverty at the same time," she says.

"We urge governments to consult more widely and put people with the least at the centre of policy design. If we get the policy settings right we can rapidly cut emissions and create a safer and fairer society."

Government says EVs could be cheaper than petrol cars within the decade

ACT Emissions Reduction Minister Shane Rattenbury says the ACT government is committed to ensuring the transition to ZEVs is fair.

"The ACT already has the most extensive financial incentives to reduce the cost barriers to purchasing a zero-emissions vehicle, including stamp duty waivers for new and second-hand electric vehicles, two years' free registration and zero-interest loans of up to $15,000 through the Sustainable Household Scheme."

ACT Minister for Energy and Emissions Reduction Shane Rattenbury says the government expects ZEVs will be cheaper to produce than equivalent petrol or diesel vehicles by 2027. (ABC News: Nick Haggarty )

Mr Rattenbury says the cost of ZEVs will reduce significantly before 2035 as more second-hand electric vehicles become available on the market, possibly even seeing them become more affordable than petrol cars.

"The global vehicle market is changing rapidly. Electric vehicle prices have decreased substantially over recent years and continue to decline. According to market experts, electric vehicles will be cheaper to produce than equivalent internal combustion engine vehicles by 2027," he says.

"As more electric vehicles arrive on ACT roads, there will be greater availability of second hand electric vehicles. This will help make them more affordable and widely available to a greater number of Canberra households."

But Margaret says she hopes the ACT government will find more ways to actively support those with lower incomes, who are trying to do their part for the environment.

"I think it's admirable that we've set this goal that we're aiming for, but the reality for people on a lower income [is that] it's just another thing that's looming there in the future that's going to bite us in the bum."

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