Australia's transport sector is a significant contributor to emissions, with cars and light commercial vehicles responsible for a large portion. Efforts to promote electric vehicles (EVs) include rebates, infrastructure investments, and the introduction of a New Vehicle Efficiency Standard. The government is also supporting the transition to battery-electric trucks through grants and investments in the Zero Emission Bus Transition Strategy. While hydrogen vehicles offer rapid refueling, infrastructure limitations and high electricity needs hinder widespread adoption. Grey hydrogen's cost advantage is offset by its reliance on fossil fuels, posing challenges for achieving Net Zero targets. In contrast, battery-electric trucks show promise in reducing emissions, although challenges such as battery size and weight exist. The government's initiatives include the Hydrogen Production Tax Incentive and the Battery Breakthrough Initiative to support renewable energy and battery manufacturing. Despite challenges like 'range anxiety' in remote areas, increased investment and consumer confidence may lead to a substantial shift towards electric vehicles, with hydrogen being a more suitable option for heavy-duty trucks on key freight routes.