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flag Australia reviews EV tax breaks after costs tripled forecasts, with industry warning cuts could harm emissions and 2035 goals.

flag The Albanese government is reviewing electric vehicle tax breaks for novated leasing, which have cost $5.1 billion—far exceeding the $1.9 billion forecast—due to higher-than-expected uptake. flag EVs now make up 13% of new car sales, and the policy’s future is under scrutiny as Treasury considers options like elimination, phase-out, or lowering the $91,387 price cap. flag Industry groups and manufacturers including Tesla, BYD, and Polestar warn cutting the break would hurt emissions goals, increase costs for workers, and undermine the 2035 target of 50% EV sales. flag They argue savings should come from other tax perks, like luxury petrol ute exemptions, not EV incentives. flag No decision has been made, but the policy remains under review amid growing pressure.

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