Updated 28th April 2025

Driving Change: Council’s New Hybrid Fleet Delivers Big Savings

As part of our commitment to long-term sustainability and smart financial management, the District Council of Yankalilla has completed the changeover of eight of its light fleet vehicles from internal combustion engines (ICE) to Plug-in Hybrid Electric Vehicles (PHEVs). This move not only reduces our environmental footprint but delivers major cost savings to the community.

This initiative supports Council’s VISION 2030 environmental pillar and reflects the key findings of our participation in the Local Government Net Zero Accelerate program. The program, supported by the Local Government Association of South Australia and a $120,000 state government grant, helped Council understand its emissions profile - revealing that fuel use in the vehicle fleet was our largest source of greenhouse gas emissions.

Big Benefits, Big Savings

Council’s decision to act quickly ahead of the 31 March 2025 deadline for the federal government’s Fringe Benefits Tax (FBT) exemption for eligible low-emission vehicles has secured long-term financial and environmental gains.

Key savings and benefits include:

• $250,000 in expected savings over the next four years, primarily through the FBT exemption and reduced fuel and maintenance costs.
• Immediate payback - Council estimates that the changeover will recoup its cost within one year.
• Annual FBT savings of approximately $70,000, which directly reduces the operational costs in Council’s budget.
• Lower emissions, contributing to Council’s broader sustainability targets and providing visible community leadership in transitioning to cleaner transport options.

About the Changeover

The total cost to change over the 8 vehicles was approximately $100,000 (ex. GST). However, $50,000 had already been allocated in the 2024-25 Annual Business Plan and the remaining cost was absorbed through internal savings made between budget reviews - meaning no additional financial impact on the bottom line.

PHEVs were selected as the most practical interim solution, offering both environmental and operational advantages:

• Can be charged via standard power outlets and also use petrol, providing flexibility for longer regional trips.
• Reduce fuel usage, cutting back on operating costs and our carbon footprint.
• Meet the Australian Tax Office’s requirements for ongoing FBT exemption - so these vehicles remain exempt for the duration of their time in Council’s fleet.

Supporting Smarter Travel Across the Region

The vehicles were sourced through the State Government’s Fleet Discount program, which provided upfront savings of between 4-6% on the purchase price. This, combined with strong resale value for the outgoing vehicles, helped make the changeover a financially sound decision.

A Step Towards the Future

While this change is an immediate win, it’s also part of a broader shift. PHEVs serve as a bridge between our current needs and a fully electric future. They help Council reduce risk associated with fuel price volatility, avoid rushed investment in EV infrastructure and build staff familiarity with more sustainable travel practices.

This proactive, well-planned initiative highlights Council’s commitment to responsible governance - balancing fiscal responsibility with environmental leadership.