The cost of electric vehicles (EV) and a lack of charging infrastructure are behind Australia's relatively slow take-up of the cars not a lack of taxpayer-funded incentives, the federal government has argued as international research shows subsidies are the best way to fuel the transition away from fossil fuels.

Federal Energy and Environment Minister Josh Frydenberg, told a recent Energy Networks event, that price and a lack of national EV charging infrastructure are the main hurdles for electric vehicles growth in Australia.

“The reason why Australia has such a poor level of take-up rate for electric vehicles is because they are expensive compared to other cars, thirteen out of sixteen of EVs that are on sale in Australia cost more than $60,000,” Mr Frydenberg said.

A recent International Energy Agency report found government initiatives for purchasing EVs are the best way to reduce costs.

“The growth of EVs has largely been driven by government policy. Vehicle subsidies and/or exemptions on purchase taxes that reduce the gap in the price faced by EV buyers have proven to be the single most effective lever for boosting EV sales,” the IEA said.