State and territory leaders are being invited to participate in the development of Australia's first national electric vehicle strategy which aims to increase uptake, and reduce costs.
Australia is significantly behind when it comes to the low emissions cars, with just eight options on the market under $60,000, Climate Change Minister Chris Bowen said.
Uptake of new low-emissions vehicles sits at just two per cent in Australia, nearly five times lower than the global average.
"Up until now, Australian households and businesses have had very little choice regarding low-emissions and fuel-efficient vehicles, and they have been paying for it," Mr Bowen said in a statement.
"Today's announcement forms part of our upcoming consultation ... to make EVs cheaper, increase their uptake and roll out more charging infrastructure."
Politicians, industry representatives and community leaders are meeting at the national electric vehicle summit in Canberra.
Speakers at the inaugural summit, co-founded by tech billionaire Mike Cannon-Brookes, include Mr Bowen, federal independent crossbenchers, state and territory leaders, motoring industry figures and union representatives.
The government is being urged to accelerate Australia's take up of the environmentally friendly cars.
A change to the definition of fuel efficient vehicles in luxury car tax laws would make electric cars more competitive and increase revenue by more than $410 million in the next three years, independent MP Monique Ryan said.
European Union ambassador to Australia Michael Pulch is going one step further, calling for the abolition of the tax altogether.
"The luxury car tax ... isn't necessary anymore because there is no automotive industry to be protected by it," he told AAP.
"But it makes it much more difficult and expensive for Australian consumers to buy the latest energy efficient and safe automobiles from Europe."
Australia must also bring fuel equality standards and vehicle emissions standards into line with international markets, independent MP Kylea Tink said.
She plans to bring a proposal to the next parliamentary sitting week in September which would legislate binding fuel efficiency standards for Australia.
Greens deputy leader Mehreen Faruqi will call on the government to urgently invest in charging infrastructure and discounts on electric vehicles.
"We need policies to push out old, dirty and obsolete vehicles and policies to bring in clean, better, more efficient electric vehicles," Senator Faruqi will say in a speech.
"We need the infrastructure to power up Australia's new electric vehicles and our vehicle manufacturing industry."
The government last month introduced a proposal to parliament to change fringe benefits tax laws and remove the import tariff on electric vehicles to make the cars cheaper for more people.
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