Small business EV resource

This guide is designed for small businesses looking at transitioning to Electric Vehicles (EVs), but it is useful for anyone considering a switch to electric driving.
From EV basics to charging options, fire safety and information about tax, this guide aims to answer all the questions you may have about EVs with straightforward and factual information.

The EV Transition Plan Template provides forms you can populate to develop your own transition plan.

This guide covers:

• reasons to switch to EVs
• understanding electric vehicles
• assessing your vehicle needs
• making an EV transition plan.

Electric vehicles make sense for Tasmanian small businesses for a number of reasons. Switching to EVs can save on vehicle costs, reduce carbon emissions, and can help to meet internal or external sustainability targets.

EVs are suitable for short- or long-range delivery vehicles, passenger vehicles for staff work or personal travel and, with Vehicle to Load (V2L) technologies, electric equipment such as a coffee machine or construction tools can be run easily from a vehicle battery when offsite.

Reducing emissions could open new business opportunities, attract funding, and improve  employee, customer and community perceptions of the business.

Cost savings on fuel and maintenance

EVs have significantly lower running costs compared to petrol and diesel vehicles, as most of the serviceable parts of a petrol engine do not exist in an EV. There are no engine oils, oil filters, spark plugs, coolant, or fuel lines. Servicing an
EV involves checking the battery state of health, checking some lubricating oils, tyres and wiper fluids. Less serviceable parts also means less chance of roadside breakdown, and less vehicle downtime waiting on repairs.

How a vehicle is driven impacts on its maintenance needs. While some sources suggest faster wear on EV tyres due to the weight of the vehicle, the  regenerative braking on an EV means that brake pads are replaced less often.
Electricity is cheaper per kilometre, and more stable in price than fossil fuels, and, with access to rooftop solar at the home or workplace, it’s possible to further cut your fuel costs. Many EVs available now are cheaper to buy than their petrol equivalents. At the time of writing, a new electric hatchback is available for under $31,000, while a petrol Toyota Corolla costs from $36,000 new.
www.comparethemarket.com.au/news/shock-difference-between-ev-and-petrol-car-running-costs-revealed/

Meet sustainability goals

Global carbon dioxide (CO₂) emissions have steadily increased over the past century, largely due to the burning of fossil fuels for transport, electricity, and industry. The transport sector is a major contributor, accounting for roughly
one-quarter of global energy-related CO₂ emissions. Road transport makes up the majority of these emissions. A significant source is internal combustion engine (ICE) vehicles. Transitioning to electric vehicles, which produce no tailpipe
emissions and can be powered by renewable energy, offers a critical pathway to reducing transport-related emissions and achieving global climate targets (IPCC, 2023, www.ipcc.ch/report/sixth-assessment-report-cycle/).

Australia’s transport sector is a significant contributor to national greenhouse gas emissions, accounting for approximately 21 per cent of total emissions in 2023. Road transport makes up the majority. To address this, the Australian Government has committed to reducing overall emissions by 43 per cent below
2005 levels by 2030 and by 62-70 per cent by 2035, and reaching net zero by 2050.

The National Electric Vehicle Strategy, (www.dcceew.gov.au/energy/transport/national-electric-vehicle-strategy) released in 2023, outlines key actions to accelerate the transition to low and zero-emissions vehicles, including establishing the New Vehicle Efficiency Standard, improving EV charging infrastructure, and supporting local industry to ensure Australians have access to cleaner, more efficient vehicles.

Tasmania has net zero emissions due to our renewable energy profile and the carbon captured in our forests. However, transport is a major contributor to emissions, accounting for 19.8 per cent of total CO2 emissions in 2023.

Switching to EVs can help reduce your carbon footprint and demonstrates a commitment to cleaner transport. In Tasmania, where the electricity grid is powered largely by renewable energy, the emissions savings are even greater compared with mainland Australia.

Access to new business opportunities

Many government bodies and large corporations now prioritise suppliers and partners that align with sustainability goals. With mandatory emissions reporting coming into effect for large  Australian businesses with a turnover greater than $100 million, it is becoming a normal part of business to enquire into supplier emissions as part of Scope 3 reporting (www.asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-205mr-asic-urges-businesses-to-prepare-for-mandatory-climate-reporting/).

In Australia, mandatory emissions reporting is being phased in, beginning with large companies. It is likely to have a significant downstream impact on small suppliers, even if they themselves are not directly subject to reporting  obligations.

Larger companies required to disclose their full value chain emissions will need accurate data from their suppliers to calculate Scope 3 impacts, meaning small businesses could be asked to provide emissions-related information,
sometimes for the first time.

This requirement could increase administrative and compliance burdens for small suppliers, particularly those without sustainability reporting systems in place. However, it also presents an opportunity for suppliers who can demonstrate low emissions operations or plans for improvement.

EV adoption as part of a small business's environmental policies may open doors to new business opportunities that require a commitment to reducing emissions, or may appeal to new customers concerned about sustainability.

Government  incentives and tax benefits

Australian and state and territory governments have offered financial incentives to encourage EV adoption, including tax exemptions, rebates, and grants for charging infrastructure. It is always a good idea to see if there are currently any programs you may be eligible for. Programs like the Australian Government Fringe Benefits Tax exemption for eligible EVs make it more affordable for businesses to transition their fleets. Incentives change often. The ATO website
offers updated information about current tax incentives (www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption), and the Australian Government EV website has a list of state-based grants and rebates (www.energy.gov.au/electric-vehicles/buying-electric-vehicle/government-support-buying-evs).

Better driving experience

EVs are quieter, smoother, and offer instant torque, making them more comfortable to drive. Many come with advanced driving features such as adaptive cruise control, and one‑pedal driving. One-pedal driving lets you  control both acceleration and braking with just the accelerator pedal, using regenerative braking to slow down when the accelerator is released. This also
creates more responsive braking, ensuring a safe journey. Due to fewer moving engine parts, EVs have less chance of breakdown than ICE vehicles.

Community and employee engagement

Employees and customers appreciate businesses that make sustainable choices. Providing EVs for staff or integrating them into your operations can boost morale, attract talent, and align with community expectations about  environmental responsibility. Some training of staff about charging and driving an EV may be needed to ensure a smooth transition, but driving an EV is essentially the same as driving a modern automatic car. Use the New EV Driver Training Checklist resource (page 27) to ensure you've covered off the key points.

To make an informed decision about transitioning to EVs, it’s essential to understand the different types, how they work, and to separate fact from fiction.

Types of EVs

There are three main types of electric vehicles:

• Battery Electric Vehicles (BEVs) 
  Fully electric with no petrol or diesel engine. These vehicles run solely on battery power and require charging via an energy source. BEVs have zero tailpipe emissions and the lowest running costs.
• Plug-in Hybrid Electric Vehicles (PHEVs)
  These have both an electric battery and a petrol/diesel engine.  They can operate in electric mode for short distances (typically 30–100 km) before switching to fuel.
• Hybrid Electric Vehicles (HEVs)
  HEVs cannot be plugged in but use a small battery alongside a petrol or diesel engine. The battery is charged through regenerative braking and the internal combustion engine. While HEVs improve fuel efficiency, they still
  rely on fossil fuels.

Hydrogen Fuel Cell Vehicles (FCEVs) do exist, but are not generally available for purchase in Australia and are unlikely to become common for light passenger vehicles.

How EVs Work:  batteries, charging and range

Batteries

EVs use lithium-ion battery packs to store and deliver energy to an electric motor. Batteries can be either Li-NMC (Nickel-Magnesium-Cobalt) or LFP (Lithium Iron Phosphate) composition. Li-NMC batteries generally have higher energy density, allowing for longer range, and they can charge faster. LFP batteries are cheaper to produce, have a longer lifespan, and are regarded as more stable and safer.

Ongoing advancements in battery technology continue to improve key performance factors, including:

• Increased range
  Newer battery chemistries and energy management system  improvements allow new‑generation EVs to travel further on a single charge.
• Extended lifespan
  Improved cell design and battery management systems (BMS) help minimise degradation, extending the useful life of EV batteries.
• Enhanced safety
  Innovations in thermal management and fire-resistant  materials reduce the risk of overheating or thermal runaway.
• Better recyclability
  Advances in battery recycling allow for the recovery of over 90 per cent of materials, reducing environmental impact and supporting a circular economy.

Charging

Almost all EVs available in Australia have the same charging plug type: Type 2/CC2. Some older vehicles have CHAdeMO ports. These are being phased out in newer models but can still be seen at many public charging stations.

There are three useful modes of EV charging (Mode 1 is redundant direct charging without Electric Vehicle Supply Equipment [EVSE], also known more commonly as EV chargers):

• Mode 2 AC (standard 10 amp power socket)
  Uses a regular household power outlet (230V). Slow charging, best for overnight top-ups. Provides 2.2 kW per hour.
• Mode 3 AC (slow or destination charging)
  A dedicated wall charger or public AC charger. Typically charges a vehicle in up to four to eight hours. Provides up to 7 kW on single phase or 22 kW on three phase per hour.
• Mode 4 DC (Fast Charging)
  Found at commercial charging stations, can charge an EV to 80 per cent in 20 to 40 minutes. Provides between 24 kW and
  350 kW per charging hour.

Range

Modern EVs offer ranges from 300 km to over 500 km on a full charge, depending on the model and battery size. To give an idea of that distance, Hobart to Launceston is around 200 km. Most businesses can operate efficiently with this range on a daily basis, particularly if regular charging is planned. Like all EVs, quoted range is based on ideal driving conditions, and can be affected by
various factors such as:

• Terrain
  Uphill driving uses more battery power, while downhill driving
  will replenish the battery through regenerative braking.
• Speed
  Faster speeds and faster acceleration use more battery power.
• Weight
  A vehicle that is fully laden or towing a load has a decreased range.
• Weather
  Outside temperatures below 15℃ or over 35℃ will reduce the vehicle range.
• Air conditioning
  Use of heating or cooling systems in the car consumes battery and reduces range.

New technology

Exciting new developments in EVs make electric driving increasingly convenient and cost-effective. Developments arriving to market include the super fast Megawatt Charging System (MCS), which allows for EV charging in minutes,  wireless charging, which enables charging without cables or plugs, battery swap-and-go to save drivers time, and Vehicle to Grid (V2G).

V2G is in development, and allows EV drivers the option to power their home from their car, or export energy to the energy market for income.

While these new technologies are in development and will be coming to market, none of them are expected to make existing EV technology obsolete and will likely be backwards compatible with EVs currently on the road.

Vehicle to Load (V2L) is now available in many vehicles, which have regular power points inside and outside the vehicle. This allows businesses to run tools from the vehicle instead of a generator, or charge battery tools such as  handheld building tools or cordless vacuum cleaners from the EV. In a power outage, home appliances or medical devices can be run from the V2L outlet.

EV driving and behaviour change

Changing to an EV does require some changes to driving behaviour. Typically, driving an ICE vehicle involves refuelling when the vehicle is showing a low fuel warning. Because of longer charge times, EV drivers will often charge when  there is the best opportunity, for example when parked to do the shopping or other planned stops or, most commonly, overnight at home. Plugging in for a top-up when possible, rather than when the battery is low, will save time.

Regenerative braking, driving modes, and one pedal driving are different ways of allowing the car to capture energy to return to the battery, and reduce wear on brake pads.

Various factors increase the rate that a vehicle uses power, so a driver should be aware of this when towing, carrying heavy loads, or driving in temperatures under 15℃ or over 35℃.

Fire safety and Work Health and Safety

Electric Vehicles are often quoted as being 10 times less likely to catch fire than internal combustion engine (ICE) vehicles. However, Australian organisation EV Fire Safe has found that the number is closer to 100 times less likely (source: EV Fire Safe www.evfiresafe.com/ev-fire-faqs). Many reported lithium battery fires involve e-bikes or e-scooters, which carry a  different risk profile to EVs.

Lower the risk of fire with your EV, follow these steps:

1. Only charge from an approved charger, installed by a licensed electrician.
2. Respond to any vehicle recalls as soon as possible.
3. Do not drive through floodwaters, and have your electric vehicle checked by an EV mechanic if it is submerged in water.
4. Have your vehicle thoroughly checked by an EV mechanic for battery damage after an accident.

In case of fire, for an EV or lithium battery powered tool, evacuate the area immediately, call 000 and advise that it is a lithium battery fire. Be aware that the smoke from a lithium battery fire is extremely toxic.

Lithium battery fires are different from other types of fire, and so battery electric vehicles need to be treated differently when it comes to fire safety and Workplace Health and Safety (WHS). EV batteries do have sophisticated Battery Management Systems (BMS) which protect the battery from overheating, and  alert the driver if a problem is detected.

Charging an EV in the workplace may present minor WHS risks, such as a trip hazard from cords, or potential for electrical risks from damaged cords or chargers. These risks can be mitigated with signage, visual checks for signs of
damage on charger cables, and regular electrical checks. A correctly installed charger will have electrical leak and surge protections included.

Include EV considerations in your fire safety and WHS manuals, and let your insurers know that you have EVs and EV charging in your workplace.

Electric bikes, skateboards and lithium battery powered tools have less inbuilt protections than EVs. The following precautions should be taken:

• Buy reputable brand products from Australian distributors, not from international online sellers.
• Use the charging cable that comes with the product.
• Do not leave the battery plugged into the charger once it is fully charged.
• Avoid charging in living or working areas, such as under desks.
• Have the battery professionally checked if it is
  damaged.

I Want Energy & Sush

I Want Energy is a Tasmanian solar and electrical business, leading the charge in fleet electrification for over a decade. The company’s journey began when its owner, an early EV adopter, purchased a Tesla S ten years ago, one of the first in the state. As the business expanded, now employing 20 people locally, so did its commitment to EVs. Today, their 12-vehicle fleet includes six EVs, including fully electric vehicles (BEV) and one Plug in Hybrid (PHEV) ute.

The financial benefits are clear: General Manager Alex Johnstone estimates that each EV saves approximately $3,500 per year in fuel and $500 in servicing compared to petrol or diesel vehicles. Additionally, novated leasing  arrangements with FBT exemptions will deliver savings of $30,000 to $40,000 over five years. The business relied on resources like the Australian Electric Vehicle Association (AEVA) and hands-on experience to navigate early  challenges, such as understanding real-world range and charging logistics.

The company has recently had a public DC fast charger installed at its premises  by Electric Highway Tasmania, while most fleet charging is done overnight at the warehouse or employees’ homes. With plans to install solar at their new Moonah location, I Want Energy aims to fuel its fleet directly from renewable energy, further cutting costs and emissions.

Looking ahead, I Want Energy is committed to a fully electric fleet by 2030.  Johnstone’s advice to other businesses is straightforward: “Make the switch—it’s worth it. If you own your premises, install solar and charge your EVs from the  roof. The numbers work.”

David Painter is the Managing Director of Sush, which employs 65 people across four businesses in the sushi supply chain, including sushi retail and wholesale. Ethical business and sustainability is at the centre of his organisation.

David made the switch to electric vehicles in 2021, purchasing a Mini Electric as the first step toward decarbonising his fleet. The Mini is primarily used for wholesale deliveries across Hobart, including regular trips to Sorell, and occasionally serves as David’s transport for business trips to Launceston. Charging was initially a challenge—living in an apartment without home charging meant relying on public infrastructure, particularly a convenient portside  charger near one of his restaurants. Limited charging options made early long distance travel difficult, but the expanding Tasmanian network (including new stations along the Midland Highway) has since made regional trips far more viable.

Understanding EVs wasn’t simple. Before purchasing, David spent hours  researching online to understand real-world range, charging logistics, and costs. For time-poor small business owners, he notes, the lack of a single, reliable information source remains a hurdle.

While the Mini has proven ideal for urban deliveries, Sushi Track’s two  refrigerated vans—essential for fresh produce transport—still run on petrol.  David is eager to replace them with electric alternatives once fit-for-purpose refrigerated EVs hit the market.

David’s advice to other businesses: “Start where you can. Even one EV in your fleet cuts costs and emissions—and as infrastructure improves, the case only gets stronger.” For Sush, the Mini is just the beginning. David is committed to a
fully electric fleet, proving that sustainability and smart business can go hand in hand.

Downton Property Group

For Nat Downton, Managing Director of Downton Property Group, the decision to electrify her company’s fleet was a strategic move that is already paying dividends. With three of their five vehicles now electric, the Tasmanian-based
company is reaping financial, operational, and brand benefits.

The initial impetus was cost. “We saw the constant drain of fuel cards and knew there had to be a better way,” Nat explains. The switch to EVs has eliminated petrol costs and dramatically reduced servicing. “We simply haven’t needed
to service them. The savings on fuel, parts, and downtime are substantial.”

The fleet includes a BYD Atto 3 for property managers and a Kia EV9 for management. Director Kylie charges her EV9 at home, while the shared vehicles are charged at the workplace. This model has proven highly efficient. “We charge between 9-11am when staff are at their desks. It’s seamless, and we rarely need public chargers, except for statewide travel,” Nat says.

Beyond the balance sheet, the transition aligns with the company's values. “It was crucial for our brand and environmental ethos. It shows a tangible  commitment to the future that resonates with clients and staff,” she notes.

While there was a learning curve for staff and Tasmania's charging infrastructure is growing, the rewards are clear. Nat highlights an unexpected perk: staff morale. “These vehicles have all the bells and whistles. It’s a real reward for the team to drive cars that are so advanced and pleasurable. It reflects the quality of our brand.”

For Nat, the conclusion is simple. “Consider the total cost of ownership, not just the sticker price. For us, it was a strategic upgrade that pays for
itself daily.”

Deliver-e Grant Recipients

In February 2025, a targeted Tasmanian Government initiative—the Deliver-e Small Business Grant Program—provided an important catalyst for small businesses aiming to reduce their carbon footprint.

With $300,000 in funding, the program offered grants of up to $20,000 for electric delivery vans and up to $2,500 for cargo e-bikes. Through the grant, 19 successful applicants were supported to purchase 34 cargo e-bikes and seven electric vans.

For James Broinowski of Small Island Wines, the grant was the tipping point. He had long considered an EV but found the upfront cost a major barrier. The  Deliver-e program provided the $20,000 needed to proceed with an LDV eDeliver 7 van. This created a "best of both worlds" fleet, where the EV efficiently handles inner-city wine deliveries, freeing up the winery's ute for heavy towing. "When it comes to chucking in cases of wine and running around the city, the ute is super impractical. The van is perfect for this," James notes. The move is a key part of the winery’s broader mission to be carbon. An installation of solar panels is planned for the winery.

Similarly, Rob Mathers of Valley Fresh Farm, a chemical-free market garden, saw the grant as a way to reduce the emissions of their daily vegetable deliveries to Hobart restaurants, and enable them to uphold their environmental ethos. The Deliver-e grant enabled the acquisition of a long-wheelbase LDV eDeliver 7
van, which now serves as the sole vehicle for all Hobart CBD deliveries, completely eliminating tailpipe emissions on urban routes. “Do all your homework,” Rob advises, emphasising the importance of understanding real-world range. “The LDV has a learning curve, but also a fantastic step forward.”

For Ahmet Bektas, of Teros, an environmentally focused homewares and bike shop, the program arrived at the perfect time. After five years of waiting for a viable electric van, the grant made their pre-ordered VW ID Buzz Cargo van a reality. The vehicle is essential for their unique work of delivering trikes to people with disabilities—a service difficult with standard freight companies. It also supports their aim for B Corp accreditation by ensuring their deliveries have a  minimal carbon footprint.

Despite their different industries, these business owners, all among the 19  Deliver-e success stories, share a common message. They encourage peers to move past misconceptions, noting that charging is easier, and range is better
than anticipated. As these Tasmanian businesses demonstrate, zero emissions electric vehicle driving is a viable option for driving economic and emissions savings in a small enterprise.

Consider the following information with your business operations in mind  to  determine what type of electric vehicle might best suit your needs.

Daily driving patterns

Most modern EVs offer ranges of between 300–500 km per charge, which is  sufficient for many business operations.

Telematics or fuel card data can give an accurate view of your driving patterns, or estimate your regular routes and any unusual driving days. The average mileage for Australian fleet vehicles is 30,000 km a year, or 115 km a day, assuming a five-day work week (NRMA) www.mynrma.com.au/business/news/how-long-to-keep-your-fleet-vehicles

As charging can be slower than petrol refuelling, it is wise to charge your vehicle during rest or meal breaks, or when you are otherwise parked, rather than wait until the battery is nearly empty.

Vehicle type and payload requirements

Due to available supply in the market, passenger vehicles are the easiest to transition to electric, and many models are available in Australia.

Several electric vans and utes are available, and more are arriving every month. Even heavy vehicles, and specialist vehicles such as garbage trucks, buses and boats, are available in electric versions. The first battery electric aircraft are also now available.

An updated list of available vehicles can be found on The Driven website: www.thedriven.io/ev-models/

Ensure the EV you choose meets any payload and towing requirements your business may have, and consider test driving your most difficult routes with weight to ensure the vehicle you choose is suitable.

As you plan your transition to electric vehicles, it’s worth looking at any petrol or gas-powered tools or equipment your business uses, as many of these now have electric alternatives that are quieter, cleaner, and cheaper to run. With V2L, you can also recharge electric tools on board your vehicle.

If you’re charging even one EV at your home or business, consider the extra demand this will place on your electrical system. For larger fleets, planning becomes even more critical. Adding solar (PV) panels or a battery system could help reduce your energy costs and make your energy systems more sustainable.

Charging accessibility

Consider where and when your vehicles are most often parked to determine how to best charge them. This is called “dwell time”.

On-site workplace charging

On-site workplace charging is ideal if your fleet returns to a central location overnight, or if vehicles are sitting for long periods during the day. Level 2 charging is usually the most appropriate for workplace charging. You will need
an electrician to review your available energy, and to install a charger, possibly with software to manage your energy use. If you need to completely charge vehicles every night, you may need a charger for each vehicle so that you don’t
need to move vehicles around to access chargers.

Do consider future growth of your EV fleet when choosing charging solutions. If more than one workplace charger is required, you’ll need to decide which chargers and charger management system (CMS) to buy. The CMS can keep your energy consumption below limits, schedule your charging for off-peak hours, and provide accounting reports of your charging. Speak to your  electrician or electrical wholesaler, or look online for options. Prices for chargers and installation vary, but a good estimate is $2,000–$3,000 per charger.

Home charging

Home charging is an option for employees who take vehicles home, and can be done from a regular power point, a 32 amp power point, or an installed level 2 charger. A business should have home switchboards and circuits inspected by an electrician as a minimum before allowing home charging. If charging from a power point, ensure the switchboard has modern safety switches, circuits are not overloaded, and the car is not charged from an extension lead or power board.

Many CMS products can calculate reimbursement, or a calculator for charging reimbursement can be found here: www.greenvehicleguide.gov.au/Calculators/HomeChargingCalculator

The ATO allows for reimbursement of home charging at 4.2c per km (ATO Practical Compliance Guide - Electric Vehicle Home Charging Rate: www.ato.gov.au/law/view/pdf/cog/pcg2024-002.pdf.

Public charging

Public charging networks should be considered for businesses with regional or high-mileage operations. Take into account that at busy times there may be a wait for public chargers, and that fast charging will cost more than using your business or home energy supply. Access to public fast charging usually requires an account with the charge point operator (CPO). Your business can obtain accounts with charge point operators and RFID cards for ease of access for staff and accounting records. These cards work in a similar way to fuel cards. The  main CPOs in Tasmania are Chargefox, EVIE and Exploren. Public fast chargers can take 20-40 minutes to fully charge a car.

Plugshare is an open resource mapping all available public chargers. It contains information on accessing the charger, records when chargers are down or undergoing maintenance, and shows useful information supplied by users
(www.plugshare.com).

Where your EV is charged may be different for each vehicle, and you’ll probably use a blend of home, workplace, and public charging.

Cost and saving analysis

EVs offer lower operating costs due to cheaper electricity on a per kilometre basis compared to fossil fuels, reduced maintenance, and the potential for government incentives. Assess the total cost of ownership (TCO) over the vehicle's lifespan to make an informed financial decision.

On the next page is a fuel cost comparison for an electric Hyundai Kona and a petrol Hyundai Kona. A TCO calculation would include the purchase price,  maintenance costs, and the expected resale value of the vehicle. Residual values: at the time of writing, EVs are not maintaining a high value on the resale
market. This is due to a number of factors, for example, EV purchasers are early adopters and fleet purchasers are more likely to buy new. Technological advancements and increased supply of EVs is resulting in new vehicle prices
decreasing dramatically. The resale market is developing tools to increase confidence in the quality of second hand EVs.

As EVs require less maintenance, and have fewer consumable parts than ICE vehicles, it is reasonable to plan to keep them longer than you would an ICE vehicle. As the larger EV market matures, the second hand market will also mature.

Electricity vs petrol costs

Hyundai Kona Electric Standard Range 51kWh compared to a Hyundai Os.V4 Kona Active 2.0P Petrol

* Aurora small business off peak tariff

**Average Tasmanian unleaded cost June 2025

This comparison is intended as a guide only, and may not be reflective of different vehicle models.

An easy TCO tool is available online: autocosts.info/au and EV-specific tools are available on the EVC website: electricvehiclecouncil.com.au/ev-ownership-costs/

Future business growth

Vehicle ownership options

Different vehicle ownership structures may suit your business.

Outright ownership provides complete control over the EV and eliminates ongoing lease commitments. However, it requires a high upfront investment and carries the risk of depreciation, particularly given the evolving EV market’s impact on residual values.

An operating lease offers a flexible alternative, allowing businesses to spread costs over time while avoiding ownership risk. The leasing company retains the vehicle and typically manages maintenance and disposal.

For businesses looking to provide staff benefits, a novated lease is a tax-efficient solution, involving a three-way agreement between the employer, employee, and leasing company. Repayments are deducted from pre-tax salary.

Each option has distinct financial and operational implications, so businesses should seek professional advice to assess cash flow, tax advantages, and long-term EV strategy before deciding.

Leasing can also be arranged for charging infrastructure for fleets, including home charging, and is known as Charging as a Service (CaaS).

Future planning

Consider how your fleet might evolve over the next 5–10 years.

• Location
  Will you be staying in the same location? Charging  infrastructure may be a considerable investment, and should last a long time.
• Expansion
  Will the fleet expand? Ensuring your charging system is suitable for expansion in the future can be as simple as laying empty conduit in parking areas, and having space for more connections in the switchboard.
• New technologies
  New technologies such as Vehicle to Grid (V2G) may create opportunities for other income streams, by using your vehicle
  batteries to store and sell energy back to the grid. Having a  solar PV array on your workplace can be a good way to prepare for the electric future.
• Planned capital works
  If civil works are planned for buildings or parking areas, consider future charging in any switchboard works, and lay empty conduit under asphalting to possible future charging  sites.

Making an EV transition plan

Transitioning to electric vehicles (EVs) in your small business fleet can bring significant cost savings and sustainability benefits, but careful planning, before purchasing a vehicle, is essential.

Writing a transition plan ensures you’re prepared for electric vehicles in your business. The templates included in this guide are available for download in separate files from www.recfit.tas.gov.au/climate. On the following pages is
an EV transition plan template which covers the following areas:

Vehicle suitability

Assess your existing business fleet and vehicle needs to ensure an EV can meet your daily driving requirements. Look at available vehicles online to determine which vehicle suits your needs (see this article on The Driven for more information thedriven.io/ev-models/).

PHEVs offer greater range than fully electric vehicles and can serve as a practical transition to full electrification. However, they do require more frequent servicing compared to fully electric models, and do still produce tailpipe  emissions.

Due to different engine configurations, EVs often have more space for cargo or passengers and some include a frunk (front trunk).

EVs can provide an advantage for businesses that use battery powered or plug in electric tools, as these can be charged or powered by the vehicle. EVs suit operating in enclosed spaces as they have tailpipe emissions, and so are being
widely adopted by mining and similar industries.

Charging infrastructure

Where will you charge your vehicle? Workplace charging, home charging and public charging are all options to consider. Where is your vehicle parked most often? Does your building switchboard have capacity? If you’re renting commercial premises, will your landlord allow or support EV charging?

Total Cost of Ownership

EVs have lower fuel and maintenance costs than petrol or diesel vehicles, but upfront costs may be higher. Calculate the Total Cost of Ownership (TCO) of your existing fleet and your future EV fleet using online calculators such as this one from the Green Vehicle Guide: www.greenvehicleguide.gov.au/Calculators/FuelCalculator

Environmental benefits and emissions

Sustainability reporting is important for internal goals and for corporate customer compliance. An emissions calculator is available from the Green Vehicle Guide: www.greenvehicleguide.gov.au/Calculators/FuelLifecycleEmissionsCalculator

Switching to low-emissions vehicles delivers direct health benefits—reducing drivers' and pedestrians' exposure to harmful fumes while cutting noise pollution. Cleaner air and quieter streets also create long-term environmental advantages for communities.

Incentives and grants

Australian, state and territory governments offer grants, tax benefits, or rebates for EV adoption. These change regularly. EV.gov.au keeps an updated list: www.energy.gov.au/electric-vehicles/buying-electric-vehicle/government-support-buying-evs

Employee training

Ensure your team understands how to use and charge EVs efficiently. Training on best practices, and combatting common misconceptions, can ensure a happier transition. The EV Driver Training Checklist resource can assist in employee training.

Develop your own transition plan, using the information in this guide. Consider all aspects of EV driving before making a purchase decision. Note any special requirements for a vehicle, such as towing.

Vehicle suitability

Existing Fleet

Consider available EVs online, and make a shortlist of vehicles that have a range suitable for your daily driving patterns, and any other particular need, such as  towing, all wheel drive, or cargo capacity. The Australian Electric Vehicle Association (AEVA) guides are a great resource for this: aeva.asn.au/info/

Vehicle shortlist

You can start to populate your replacement schedule. Use online vehicle calculators to determine the upfront financial cost, and the Total Cost of Ownership (TCO) for the life of the vehicle, and add to the table above. Consider if outright purchase, leasing, or novated lease is best for your business. Your  accountant is the best person to advise you.

Replacement schedule

Charging infrastructure

Stakeholder engagement

There are going to be internal and external stakeholders who need to be engaged or informed about your EV adoption. These will vary, but may include the following:

• Staff
  Assess their familiarity with EVs, and provide training if needed. Consider allowing personal EVs to charge at work.
• Accountant
  Consult your accountant about FBT exemptions, charging  reimbursement, financing or leasing options.
• Landlords or tenants
  Consult regarding charging infrastructure or shared resources.
• Insurers
  Insurance agents may need to know where EVs are charging.
• WHS and Fire Safety planners
  Update fire and WHS plans.
• Customers
  Tell customers, who may value your environmental commitment.

Stakeholder analysis

With this checklist, drivers will be confident and ready for EV driving.

• Locate the charging port, understand how to open it (manually, key fob, or via dashboard).
• Practice connecting/disconnecting the charging cable. Cable will be locked during charging. May need to hit a release button for AC charge port.
• Modes of charging: Understand the difference between:
  • Mode 2 (240V powerpoint 2.2 kW)
  • Mode 3 (installed AC 7-22 kW)
  • Mode 4 (DC Fast Charging 50-350 kW)
• Use the in-car navigation or an app (like PlugShare) to locate a  nearby public charger.
• Practise using a DC fast charger: 
  • Locate the charger and park correctly.
  • Properly connect the CCS connector.
  • Initiate the charging process using RFID card or app.
  • Monitor charging speed and state of charge on the station and in the vehicle.
  • End charge session and disconnect connector.
• Understand charging etiquette: Don't park at a charger if you're not charging. Move your vehicle once charging is complete. Charge to 80 per cent if others are waiting.
• Regenerative braking: Understand how regenerative braking adds range when car is slowing. See where this is displayed on dashboard.
• Range display: Identify where the estimated range is shown. Understand that it's an imperfect prediction affected by road conditions and driving style.
• Practice starting the vehicle (passive start or start button).
• One-pedal driving: Learn how to switch between driving modes, practise accelerating and decelerating in different modes.
• Climate control: Understand that using heat (especially) and A/C significantly impacts range. Seat and steering wheel warming is more energy efficient.
• Infotainment and apps: Locate the energy/consumption screen and the charging settings menu. Pair phone (if available).
• Accelerate from stop to experience immediate torque without gear transition.
• Note the quiet nature of the vehicle at low speeds and be extra aware of pedestrians, cyclists, and animals who may not hear you coming.
• Emergency preparedness:
  • Understand that an EV fire is rare but serious.
  • Do not drive an EV through flood waters, or after an accident.
  • In case of an accident, alert first responders to your vehicle being electric.
• Low charge scenarios:
  • Understand low battery warnings and minimum levels
  • Do not drive below 0 per cent battery. Call for assistance. Most roadside assistance vehicles do not have EV charging and vehicle will need to be towed.

AC charging (Alternating Current) A slower charging method typically used at home or workplaces. Most commonly used for overnight charging.

Battery chemistry The specific chemical makeup of an EV battery affecting performance, range, cost, and degradation. Types of battery:

• LFP – Lithium Iron Phosphate
• NMC – Nickel Manganese Cobalt

Battery degradation The gradual decline in battery capacity and performance over time due to use and age.

BEV (Battery Electric Vehicle) A vehicle powered entirely by an electric battery, with no internal combustion engine.

Carbon footprint The total amount of greenhouse gases (mainly CO₂) emitted directly or indirectly by an individual, organisation, product, or activity.

CCS2 (Combined Charging System Type 2) A fast-charging standard widely used in Europe and Australia, compatible with both AC and DC charging.

CHAdeMO A DC fast-charging standard developed in Japan, still in some older vehicles in Australia.

Charge plug The connector that links the EV to a charger; comes in different types (for example, Type 2, CCS2, CHAdeMO, MCS).

Charge Point Operator (CPO) An organisation responsible for the installation, operation, and maintenance of EV charging stations. The most common CPOs in Tasmania are Chargefox, Evie and Exploren.

Charge port The physical inlet on an electric vehicle where the charging cable is connected.

Charging as a Service (CaaS) A lease arrangement for fleet charging infrastructure, so infrastructure becomes an operating expense rather than a  capital cost.

Charging bay A designated parking space equipped with EV charging  infrastructure.

Charging station A site where EVs can be recharged, typically comprising one or more chargers and charging bays.

Charging modes 1, 2, 3, 4

• Mode 1: Direct connection power: obsolete as a way of charging.
• Mode 2: 10 amp single-phase AC connector, used with a power point.
• Mode 3: 32 amp single or three phase AC connector.
• Mode 4: Refers to fast or ultra-fast DC
  charging infrastructure.

DC charging (Direct Current) Also known as fast charging; delivers electricity directly to the battery, typically at higher speeds via public chargers.

Eco driving modes Vehicle settings that reduce power output and optimise efficiency to extend range.

FBT (Fringe Benefits Tax) A tax applied to non-cash employee benefits, such as private use of a work vehicle.

FCEV (Fuel Cell Electric Vehicle) An electric vehicle powered by hydrogen through a fuel cell, emitting only water vapour.

HEV (Hybrid Electric Vehicle) A vehicle with both an electric motor and an internal combustion engine that cannot be plugged in to recharge.

kW (Kilowatt) A unit of power. Used to describe the rate of electricity consumption or charger output.

kWh (Kilowatt-hour) A unit of energy. Indicates how much energy an EV battery can store or consume.

LCT (Luxury Car Tax) A tax levied on cars above a set value threshold, with a higher threshold for fuel-efficient vehicles.

LFP Lithium Iron Phosphate (battery type)

Load management The process of optimising energy demand across charging stations to avoid overloading the electricity network.

MCS (Megawatt Charging System) High powered charging system designed to deliver a megawatt or more. Initially for trucks and ferries.

New Vehicle Efficiency Standard (NVES) A federal Australian policy that sets limits on the average CO₂ emissions of new cars and light commercial vehicles sold.

NMC Nickel Manganese Cobalt (battery type)

Novated lease A three-way agreement between an employee, employer, and  finance provider, allowing employees to lease a vehicle through salary sacrifice.

OCPP (Open Charge Point Protocol) A communication standard that allows EV chargers and network software to work together, regardless of brand.

One pedal braking A feature where releasing the accelerator slows the vehicle via regenerative braking, reducing or eliminating the need to use the brake  pedal.

PHEV (Plug-in Hybrid Electric Vehicle) A hybrid vehicle that can be recharged  from an external source and driven for limited distances on electricity alone.

Plugshare A crowd-sourced app and website that helps EV drivers locate  charging stations, view availability, and leave reviews.

Range The total distance an EV can travel on a full charge under typical conditions.

Regenerative braking A system that recovers energy during braking and feeds it back into the battery, increasing efficiency.

RFID (Radio Frequency Identification) A contactless card or device used to initiate or end charging sessions at public chargers, similar to a fuel card.

Scope 1, 2, 3 emissions Emission categories for carbon accounting:

• Scope 1: Direct emissions (such as fuel used by fleet vehicles).
• Scope 2: Indirect emissions from purchased electricity.
• Scope 3: All other indirect emissions (such as manufacturing, business travel, transportation and distribution).

Smart charging Charging that is scheduled or controlled to reduce electricity costs or grid impact, often via software or automation.

SoC (State of Charge) The current level of battery charge, usually expressed as a percentage.

SoH (State of Health) The current condition of a battery, regarding degradation or malfunction. Can be expressed as a percentage of original capacity.

Tailpipe emissions Pollutants released into the air from a vehicle’s exhaust,  including carbon dioxide (CO₂), nitrogen oxides (NOₓ), and particulate matter.

Telematics Digital systems that monitor and report on vehicle location, use, fuel/battery status, and driver behaviour.

Thermal runaway A rare and dangerous event in which a battery cell overheats uncontrollably, potentially leading to fire or explosion.

Total Cost of Ownership (TCO) The calculation of vehicle cost, plus running expenses over the life of the vehicle, less resale value.

Tool of trade vehicle A work vehicle assigned to a staff member, often taken home each day and used for job-related duties.

Torque A measure of the rotational force produced by an engine or motor, often associated with a vehicle’s ability to accelerate or tow heavy loads.

V2G (Vehicle-to-Grid) Technology allowing EVs to return stored energy to the grid, potentially providing grid support services.

V2H (Vehicle-to-Home) The ability for an EV to power a home using the vehicle’s battery.

V2L (Vehicle-to-Load) The ability to power standalone devices or tools from the EV battery (for example, via onboard power outlets).

V2X (Vehicle-to-Everything) A broader term encompassing V2G, V2H, and V2L technologies for integrating EVs with the energy ecosystem.

WLTP / NEDC Different test procedures for estimating vehicle range:

• WLTP: Worldwide Harmonised Light Vehicles Test Procedure (most relevant for Australia).
• NEDC: Older, less accurate European testing cycle.

ZEV (Zero Emission Vehicle) A vehicle with no tailpipe emissions, including
BEVs and FCEVs.