Last night’s federal budget suggests an important step in Australia’s transition to cleaner energy and electric transport may be underway.

Spiking prices and geopolitical uncertainty in global oil markets show transport policy is no longer just about mobility or environmental issues. It’s also about energy.

Australia’s overwhelming dependence on imported fuels has left it vulnerable to the worst energy crisis on record. Leaders have scrambled to shore up scarce supplies of diesel while EV sales soared across Australia.

The 2026 budget has important investments in freight rail, walking and cycling and fuel supplies.

But there were big gaps too. There was little to boost the EV charger network or begin electrifying heavy vehicles. There was also no clear plan for how governments will replace fuel excise revenue as transport electrifies.

Overall, the budget continues the cautious and incremental shift towards electric transport, rather than hitting the accelerator.

EV transition and market maturity

If the government backs EVs, why is it dialling back tax incentives such as the Electric Car Discount, which helped accelerate their early uptake?

It’s because policymakers believe the EV market is maturing. Many........

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