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 government is putting $97.2 million towards a new Consumer Energy Resources National Technical Regulator. In plain English: a body that sets the rules for how your solar, battery and EV can play nicely with the grid (and how you get paid for it). This follows on from the National Consumer Energy Resources Roadmap.
Another $15.9 million over four years goes to the Australian Energy Regulator to implement recommendations from the NEM wholesale market settings review released in December 2025. That review was all about making sure market incentives and competition keep up with the shift to renewables.
Battery Inspections
The Battery Rebate program picks up $14.6 million over five years (plus $0.7 million in 2030-31), but don’t get too excited. This funding is specifically to “maintain proportionate battery systems inspections” under the program. So it’s keeping the compliance and inspection side running, not expanding subsidies.
Solar Panel Recycling Pilot
$24.7 million over three years for a national solar panel recycling pilot, including up to 100 collection sites to keep old panels out of landfill. This isn’t actually new money. It was announced in the 2025-26 Mid-Year Economic and Fiscal Outlook and has been reshuffled from existing programs, with Treasury now handling payments to states and territories.
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.
$20,000 Instant Asset Write Off Becomes Permanent
In great news for solar and battery installers turning over less than $10 million, the ability to instantly write off business purchases under $20,000 has become permanent. It was previously set to expire on June 30, 2026 and revert to $1,000. In simple terms this rule subtracts the value of these purchases from the taxable income of the business immediately instead of depreciating gradually over time. This will help with cashflow – which is a constant challenge for solar businesses.
Cheaper Air Conditioners?
The Budget includes the removal of “nuisance” tariffs on several imported goods, including air conditioners. The tariff elimination takes effect from July 1, 2026. This is designed to reduce the cost of imports and reduce red tape. Let’s hope it makes air conditioning a little cheaper to install.
$1.3 billion cut from renewable programs
In not-so-good news, the federal Budget has axed $1.3 billion from three flagship renewable programs over 10 years: Solar Sunshot (a $1 billion solar manufacturing initiative), the Battery Breakthrough Initiative ($500 million for domestic battery manufacturing), and Hydrogen Headstart. A further $600 million in cuts hit other clean energy schemes, including $93.8 million from the Powering the Regions Fund and $78.6 million from Regional Hydrogen Hubs.
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
- more battery inspections
- solar panel recycling
- streamlining technical rules around home energy gear
- 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, while losing interest in making solar panels, batteries (and hydrogen) in Australia.
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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.
Good comments Patrick. If only more people thought that way and let the politicians know.
“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!
I think that Brian’s key point is still valid. More needs to be spent on electric charging infrastructure.
The vehicle manufacturers need to be either encouraged (money or tax wise) or shamed into providing charging stations much like what Tesla has done. Up till now the ICE vehicle manufacturers have just relied on the Fossil Fuel industry to provide their fuel stations, a free road for them.
BYD is such a dominant player now that it surely should step up?!
Rob: – “Up till now the ICE vehicle manufacturers have just relied on the Fossil Fuel industry to provide their fuel stations, a free road for them.”
Yep, the ICEV manufacturers have relied on the petroleum industry to provide fuel stations. The free ride is over.
It’s now 74 days since the conflict began (on 28 Feb 2026). Circa 14 Mb/d x 74 days = 1,036 Mb of global crude oil production has been lost so far, and there’s no sign of the SoH reopening to normal traffic any time soon. Eric Nuttall suggests at least 1.5 Gb of crude oil production will be inevitably lost, even if the SoH were to be reopened today.
Meanwhile, world oil/petroleum product inventories continue to decline at a record rapid pace. We’re going to have to reach oil/fuel prices within weeks that actually cause sufficient demand destruction.
The fragility of global fossil fuel supply underscores why scaling renewables and electrification is essential for lasting energy security.
Like the 1970s, the fuel ‘crisis’ is manufactured. Back then it was to force industry participants on to the petrodollar to extend US global hegenemony. This time the ‘crisis’ is to force participants onto a cryptocurrency based blockchain to remove friction in settling energy contracts and ‘transparency’.
Do you think it is any accident that:
– BP announce latest quarterly profits at $US 3.2B (extaordinary super)
– Banks make Record Profits (RP)
– Home Hardware make RP
-DNSPs make RP (cf SA Power Networks)
– Food distrubuters make RP
-RBA push up interest rates to throw economy under a bus
– add yours here RP
Someone in the media said there was a ‘cost of living crisis’. Wonder if I will get a payrise this year. The one I have been expecting for five years
47 Years worth of oil left based on current reserves: https://www.worldometers.info/oil/ .
That should get us through the next year or two – or more in Australia with the current rate of charging station availability.
I’m confident we’ll have a few more charging stations available by then.
Point is if you want people who drive long distances (and most people who live in high rise) to buy EVs we need charging stations now.
Brian: – “47 Years worth of oil left based on current reserves”
It’s the rate at which oil can be extracted that’s much more important than the ESTIMATED size of the reserves.
Most oil producing countries are in production decline, some have peaked, & a few are still increasing production, like Canada, Brazil & Guyana.
Conventional oil production (excluding tight oil, oil sands, & natural gas liquids) peaked around 2005–2006, & the decline has been masked by the growth of unconventional sources like US shale oil. US tight (shale) oil appears to have also peaked/plateaued in late-2025.
There is nowhere in the world that can make up the current global crude oil + condensate production shortfall (due to the closure of the SoH) of circa 14 Mb/d. Not from USA; Canada; Brazil; Guyana & Venezuela.
If kinetic action resumes in the Middle East then more oil production could be lost for years (i.e. as much as 25 Mb/d).
Pre-conflict world crude oil rate was ~86 Mb/d.
What’s the bigger issue, production areas having peaked and in decline, or that increasingly production is prohibited by governments more concerned by climate change than cost of living, strategic vulnerability, and basic economics?
The UK for instance is having quite a challenging time at present, and yet their Labour government is preventing the development of their gasfields as they seem to think it better that said gas stay in the ground so that costs soar, people die, and the economy tanks, than risk normal consumption, healthy and safe living, and a functional economy. Oh there is one exception – one gasfield can be tapped so that bitcoin mining can be done for cheap in the UK. But it won’t be the peasants benefiting from that so no worries.
I may soon buy an EV but I know this is a seriously incorrect statement:
“…….to drive a car that is guaranteed to increase travel time on long journeys”.
That fast charging, long range EV on the long journeys that I do would not take any longer than the usual stops I make for a coffee, stretch, lunch and toilet break. Many other EVs can do the same. There are plenty of chargers along the way. The 400kms trip to Sydney can easily be made without the need to top up no matter what the conditions are. Other longer trips – up to 1200kms – are done in two days if more than about 650kms so charging can be done easily during stops. You don’t need to fill up just put in enough charge to make it to the next stop comfortably or your destination for the day. Ranges are getting higher and charging faster. But more, faster chargers in regions would be better.
For just a few trips to more remote parts of the country I would be taking my diesel 4WD anyway so they aren’t an issue.
Except at Xmas & Easter, when sheer hordes must stress any new service, still scaling up, I’d have to agree that stopping for a meal while charging is pretty much an acceptable holiday mode. (Charging, OK, queueing much less so.)
I’m just home from a 65 km shopping trip, and haven’t bothered to plug the BEV in, despite cloudless sunshine, as there’s three more of them in its battery.
My brother is driving over 1,000 km tomorrow to come down here, but that’s in a PHEV. I wouldn’t have one – too much stuff to go wrong one day, but it does the job. With 27 kW of panels, charging two EVs off-grid is no problem. Personal “energy sovereignty” is very nifty.
Agree that for highway driving, longer trips, the number of charging stations, more locations on our vast highways network, as well as number of chargers at each location to cope with increasing EV numbers is an issue that will be with us for a good while.
Of course the number of charging stations at locations is required in much higher numbers, as even if an EV is going to be there for say just 15 to 20 mins for an 80% charge, compared to liquid fuel fill in say 5 mins it’s just maths.
As important, if not more important, is having adequate grid power at each location.
EV chargers are hobbled badly when you have a good number of them hooked up, and more than the local grid can cope with.
Speeds can get down to level 2, 3 phase 22kwh speed or so.
Batteries are improving quickly, charging speeds are getting kind of extreme in some cases, but the specific local grid capability will be the downfall of that, moreso in regional highway locations.
Love the EV for urban, charging at home.
How’s ICEV trip times when regional fuel stations have run out of fuel?
I attended a regional NSW event two weeks ago which brought a few thousand people to a town for a few days.
The event organisers sent out a plea to participants to not fill up at local fuel stations as the town was struggling for its own supply.
Annoyingly though, out accommodation had no provision at all for charging our car, not even a power outlet within safe reach of the cars. It was parked there for three nights and could easily have trickle charged.
Instead I joined the afternoon queue at the one fast charge site in town. Which of course had the nearly ubiquitous and inconsiderate fully charged EV sitting there still plugged in waiting for its owner to return and bugger off so the rest of us could charge.
But all round town there are power poles everywhere, any one of which could easily have an AC charge station on it.
“$20,000 Instant Asset Write Off Becomes Permanent“
Can someone pls help me to understand how it’ll help people who have paid for solar and batteries? Does this mean they can write off solar and battery installation up to $20k? Thanks
This is to help businesses. So I included it because it will help installers with their cashflow.
But if you have a business with a turnover less that 10 million and you buy a solar/battery system for less than $20k, you can now (in the correct circumstances – talk to your accountant) write it off immediately against your profit for that financial year – and pay less tax.
Tim:-
Yes – a Solar PV/Battery System (up to $20,000) can be claimed as an Instant Asset Write of Goods Purchase, but there are 2 key points the business claimant MUST satisfy beyond exception to be accepted by the ATO:
(1) It only applies to a bona fide Registered Business Entity.
(2) For income tax purposes, a depreciating asset is only eligible for the instant asset write-off in the specific financial year it was purchased, if it fully meets one of two TIMING DEFINITIONS:
(A) FIRST USED: The asset is actively operational and performing its business function. OR
(B) INSTALLED READY FOR USE: The asset is in the specific location where it is intended to be used, has been completely assembled/set up/commissioned, and is in a condition where it can be used for its intended purpose.
Lawrence Coomber
The budget’s “Support for reforms aimed at increasing uptake of zero-emissions heavy vehicles” would make a very interesting article indeed. That’s not just “energy sovereignty” to the tune of tens of billions of dollars of foreign exchange benefit, but also a massive boost in food security – more diesel for farmers, plus more resilient logistics, able to deliver essentials even after diesel comes only in 50 mL scent dispensers.
EV charging technology as we know it is already in the obsolescence lane! Done panic. Obsolescent is not the same as obsolete. Many people dont get this point.
I wind back my clock to early round table brainstorming sessions on this subject. They happened organically everywhere I expect, but certainly in Japan China and USA (Detroit).
One session I participated in was at the Society of Automotive Engineers in Detroit (a global professional association and standards development organization for engineering professionals in the automotive, aerospace, and commercial vehicle industries) in Oct. 2017, with about 20 other battery engineers, and we quickly came to a consensus; that future EV charging would most certainly be: “wire less in road Inductive charging using electromagnetic fields” to transfer energy to an in-vehicle “accumulator” within several seconds, whilst driving at normal speed, over colour coded road sections. So thats whats being developed.
Lawrence Coomber