'Leading the way': Morrison govt MP praises ACT's electric car policies

Katie Allen's support for the ACT's approach puts her at odds with the Morrison government, which believes technology and a focus on commercial fleets - not taxpayer subsidies - is the key to making electric vehicles more affordable.

The ACT's Labor-Greens government has adopted a much different approach to their federal counterparts, announcing plans to offer zero-interest loans of up to $15,000 and free car registration to entice drivers to make switch.

The Barr government's policies drew warm praise from Dr Allen and the other members of the cross-party Parliamentary Friends of Climate Action, which held a forum on electric vehicles in Parliament House on Thursday.

Independent MP Helen Haines said the ACT was leading the nation on electric vehicle policies.

"I think we can learn a tremendous amount by what is working from here," Ms Haines said when asked if governments around Australia should follow the ACT's lead.

"I know that the population of Canberra is not necessarily replicated across the country, but I think the incentives that have been brought forward here are really positive and I would love to see the federal government adopt some."

In response to the same question, Dr Allen said the "ACT was leading the way" while Victoria was heading in the wrong direction - a reference to the state's planned electric vehicle tax.

Dr Allen, a first-term MP who represents the Melbourne-based seat of Higgins, also said the government should consider scrapping the luxury car tax for electric vehicles to encourage "the right sort of consumer behaviour".

A 33 per cent luxury tax is applied to "fuel efficient vehicles" which cost more than $77,565. The threshold is lower for regular vehicles, at $68,740.

Dr Allen is the second government backbencher to this week speak out on electric vehicle policy, with Trent Zimmerman talking up "early and short-term" taxpayer subsidies and abolition of the luxury car tax to encourage the transition.

Dr Allen also called for national cabinet to take the lead on setting policy, saying "if we can get some consistency across all of the states it is going to be better for Australia".

Independent MP Zali Steggall agreed, calling for national consistency rather than a "hodgepodge" of electric vehicle policies in different states and territories.

Ms Steggall backed the axing of the luxury car tax as well as tweaks to fringe benefit tax rules to encourage large companies to decarbonise their fleets.

The Warringah MP said the government should lead by example and switch to electric vehicles.

The government's so-called Future Fuels Strategy, released last month, ruled out subsidising the cost of electric vehicles, arguing it wasn't a cost-effective means of cutting carbon emissions.

The strategy, which is out for consultation until April 2, encouraged support for companies to transition their fleets to electric and hybrid vehicles.

The government believes that will ultimately help reduce the cost of vehicles for private owners, as more cars are recycled through the second-hand market.

Climate action and industry advocates have roundly condemned the strategy, with the Electric Vehicle Council describing the paper as "another flaccid, do-nothing" document.

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