Drivers could save as much as $12,000 on owning an electric car under a new Labor plan to cut emissions.
The opposition's long-awaited climate policy, which was unveiled on Friday, revealed emissions would be cut by 43 per cent by 2030, based on 2005 levels.
The plan also includes a national electric vehicle strategy, which will see an exemption on import tariffs that would save motorists more than $2000.
An exemption on fringe benefit tax would result in savings of up to $8700 for a $50,000 model vehicle, $10,600 for a $60,000 model while those driving a $70,000 model, such as a Tesla Model 3, would save up to $12,000.
Labor has forecast electric vehicles will make up 89 per cent of new car sales by 2030, with 15 per cent of all cars on the road by then being zero-emission.
An electric vehicle target will also be implemented for the commonwealth fleet.
Opposition Leader Anthony Albanese will be spruiking the policy throughout the next week, and a campaign event in Sydney at the weekend.
Electric Vehicle Council chief executive Behyad Jafari welcomed the policy announcement.
He said the proposal would help accelerate the uptake of zero-emission vehicles.
"Labor's plan for a national electric vehicle policy is well overdue for Australia," Mr Jafari said.
"Australia should be building batteries and electric vehicles, but we have so far been let down by a lack of ambition at a federal level."
Mr Jafari said the initiative would make it easier for people to shift to electric vehicles.
"It's a welcome development to see the debate now shifting to how to embrace the future of electric vehicles in Australia," he said.
Despite the positive reception from the sector, other reactions to the opposition policy have been more muted.
The Business Council of Australia has called for a more ambitious target of 46 to 50 per cent.
The Australian Council of Social Service said more was needed to encourage low-income households to take up solar power and energy efficiency, and to phase out wasteful fossil fuel subsidies.
"People with the least are impacted by climate change first, worse, and longest, but have fewer resources to cope, adapt and recover from climate impacts or benefit fully in the energy transition," ACOSS CEO Cassandra Goldie said.
Mr Albanese defended the policy, despite it being less ambitious than what was taken by Labor to the 2019 election.
"It is a modest policy. We do not pretend that it is a radical policy. It is a consistent policy with our approach," he told reporters.
Australian Associated Press
Sign up for our newsletter to stay up to date.