Climate groups and industry bodies including the Electric Vehicle Council (EVC) praised the move, saying the country had finally “joined the rest of the developed world”.
“This announcement from the federal government, when legislated, will give Australians a greater choice for the cars they want and put money back in their pockets through lower fuel bills,” EVC chief executive Behyad Jafari said.
“Within a few short years, it will mean the average family will not have to spend as much on imported petrol, which we know is hugely volatile on price.
“Australia has always been at the back of the queue when it comes to the best and cheapest electric vehicles, because car makers have been incentivised to offer them elsewhere first.
“That should end now with this policy, and Australian car buyers should notice the change very quickly.”
The government will consult on the preferred model for a month and introduce the legislation as soon as possible, with the new cost-saving rules to come into effect by January 1, 2025.