Australia faces growing scrutiny over national security and regulatory gaps amid a surge in electric vehicle (EV) sales, with experts warning that current policies may leave the country vulnerable to economic and security risks. The rapid adoption of connected EVs is prompting calls for a comprehensive inquiry and accelerated development of a road user charge.
According to government sources, nearly all vehicles available to federal parliamentarians under the Department of Finance’s approved list are connected models, with only eight out of 23 non-connected. Of these, six are Chinese-made BYDs. Intelligence agencies, including ASIO, have expressed concerns about ministers such as Don Farrell and Chris Bowen using these vehicles for sensitive discussions, citing potential cybersecurity threats.
Security experts argue that the government’s strategy relies excessively on individuals safeguarding themselves, rather than imposing enforceable standards to regulate data collection and storage in connected vehicles. Jason Van der Shyff, co-founder of cybersecurity firm Sirius and a fellow at the Australian Strategic Policy Institute, highlighted the risks of data generated by EVs being subject to foreign laws, potentially granting external actors access to sensitive information. He emphasized the need for urgent regulatory action to keep pace with the fast-growing EV market.
The security concerns come as retailers warn of insufficient charging infrastructure to support the dramatic increase in EV ownership, which recently surpassed new petrol vehicle sales for the first time in August. Analysts caution that while EV sales contribute to household consumption, the broader economic benefits may be overstated amid weak overall growth. The decline in fuel excise revenue due to fewer internal combustion engine vehicles is increasing pressure on the government to devise new transport funding mechanisms.
The Coalition has been engaging with Labor over proposals for a national road user charge, a policy response to falling fuel excise revenue. Although Infrastructure Minister Catherine King acknowledged ongoing work by a federally established taskforce to design and implement such a charge, she declined to comment on the status of negotiations with the opposition. In contrast, New South Wales has announced plans to introduce its own road user charge by mid-2027, while expressing preference for a coordinated national approach.
Internationally, several countries have enacted measures targeting connected EVs, including bans on vehicles with software deemed high risk and strict limits on geolocation and data tracking. Experts caution that Australia is lagging behind in adopting similar safeguards. This gap is seen as particularly urgent given the recent launch of BYD’s affordable EV model retailing under AUD 20,000, which is expected to accelerate EV uptake.
Critics from the Greens and the Coalition alike have condemned the government’s perceived lack of urgency in addressing connected vehicle risks. David Shoebridge, Greens digital rights spokesman, described the issue as more than a privacy inconvenience, asserting that Australians are increasingly subject to corporate surveillance without adequate consent or protections. He also criticized the government for maintaining Chinese-made EVs on the approved vehicle list despite security warnings.
Opposition members, including Aaron Violi, the shadow cyber security spokesman, have called for a formal inquiry into the national security and privacy risks posed by EVs. Liberal MP Mary Aldred meanwhile accused Labor of relying heavily on EV sales to meet emissions targets, while neglecting associated security issues. Aldred questioned why MPs are prohibited from using TikTok on government phones but issued Chinese-built vehicles featuring Huawei communication systems.
While the Department of Finance confirmed consultation with relevant security agencies on vehicle procurement, those agencies reportedly consider final selection decisions outside their remit. Former UK diplomat and geostrategy expert Charlie Parton warned that Chinese EVs collect extensive data likely accessible by the Chinese Communist Party on request. He advised ministers against using connected vehicles for sensitive conversations, plugging personal devices into them, or driving in locations where onboard cameras could capture sensitive information, noting that vehicles’ real-time movements are also tracked and recorded.