Australia is in a significant shift toward EV incentives as part of efforts in curbing carbon emissions and creating a more sustainable future. The state and federal governments around Australia have implemented various incentives with the aim of offering affordable and accessible electric cars. These incentives vary state by state, depending on the different financial and non-financial benefits presented by each.
Breaking Down EV Incentives in Australia
Governments in Australia are eager to promote the use of electric vehicles, and in this regard, they have introduced a number of incentives for EVs. These incentives are meant to help reduce the cost of buying and running an EV, thus making it more accessible to everyone. Here are some of the most common types of EV incentives available:
- Rebates: These are cash incentives provided by state governments to reduce the initial purchase price of an EV.
- Tax exemptions: You could benefit from reductions or exemptions on stamp duty and other taxes when registering your EV.
- Free public charging: Some states offer free charging at certain public charging stations, saving you money on fuel.
- Home charging assistance: Financial support is available in some regions to help with the cost of installing home EV charging stations.
New South Wales
New South Wales scrapped its $3000 EV rebate scheme on January 1, 2024, claiming the leftover funds from the program would be used to boost the state’s public EV charging infrastructure. Buyers who placed a deposit on an eligible vehicle before January 1, 2024, should still be able to receive the rebate, even if the vehicle has not yet been delivered.
Stamp duty exemption for all new and used EVs and FCEVs that cost less than $78,000 also ended on December 31, 2023.
The NSW government announced its EV policy in June 2021 and swiftly rose to the top of the class, receiving a gold star from the Electric Vehicle Council (EVC).
NSW intended to implement an EV road user charge from 1 July 2027, in an effort to recover the lost fuel excise revenue. But with the High Court ruling in October 2023 that Victoria’s similar tax was unconstitutional, it is something other states and territories would be well advised to think about.
The NSW government intends to commit $171 million to new charging infrastructure and transition the entire government fleet to electric vehicles by 2030. However, this will be supported through initiatives such as the installation of EV chargers at 100km on highways and 5km in the Sydney region. The government also included fund measures for fast chargers: $149m, businesses: $105m, destination chargers: $20m, and the NSW EV Strategy: $263.5m.
Australian Capital Territory
The ACT was relatively swift to move with its EV strategy, having first announced plans back in 2018.
The nation’s capital ultimately wants 100 per cent of new vehicles bought in the jurisdiction to be EVs by 2030 – a goal that aligns it with numerous European municipalities – and also has a target of net zero emissions by 2050.
To get to those tiers, the ACT had provided two years of complimentary registration and stamp duty exemptions for ‘zero-emissions’ vehicles – fully battery-electric and fuel-cell electric.
That all ended June 30, 2024. A new emissions-based registration scheme charges less in fees for eligible electrified vehicles than for higher-emitting vehicles. Weight is no longer a factor in the registration fee.
There are further changes for the financial year 2024/25, but until that time, the ACT government will continue to offer interest-free loans of up to $15,000 for eligible households to buy an EV-ready vehicle, capped at vehicles of less than $89,332 under the luxury car tax threshold, or other EV charging equipment.
Northern Territory
The Northern Territory is pressing on with its EV incentives – even though it is one of the most affected by long distances and, so far, a lack of charging infrastructure.
Since July 1, 2022 (until June 30, 2027), buyers of new or used battery-electric, fuel-cell and plug-in hybrids can receive a $1500 discount in stamp duty and free registration for five years.
This incentive is passenger and light commercial vehicle focused.
Also available and live is an Electric Vehicle Charger Grant Scheme, that will help pay for the cost of a residential EV charger, for eligible owners, with a contribution of $1000 or for businesses at $2500.
The Northern Territory government had also been rumored to be weighing an EV road user charge, but that’s no longer on the table at least in the immediate aftermath of the High Court’s decision in the Victorian scheme, which it declared unconstitutional and the scheme was subsequently disbanded.
Queensland
While other states are scrapping their EV incentives, Queensland is bucking the trend by not only maintaining strong incentives but increasing them.
The Queensland government first introduced measures to reduce stamp duty for EVs and provide a $3000 rebate for new EVs that cost up to $58,000, which was lower than other states.
However, since April 21, 2023, Queensland has doubled its rebate to $6000 and raised the dutiable vehicle value threshold to $68,000 plus on-road costs.
The rebate is available to those with a total household taxable income of $180,000 or less per year.
Queensland is also continuing to offer discounted registration fees and stamp duty rates for EV owners.
The Sunshine State previously encouraged the take-up of zero-emission vehicles with an ‘electric super highway’ between the Gold Coast and Cairns, among other measures.
South Australia
South Australia axed its $3000 EV and FCEV rebates as of December 31, 2023, however new EV buyers are still able to receive a three-year registration fee exemption on all eligible purchases until June 30, 2025.
Any customers having a binding purchase contract that went unfilled on December 31 last year are to be compensated with the $3000 bonus even if it takes a long time to fill up that order.
No stamp duty exemption is being allowed.
South Australia had already declared that it would like to be a “national leader in electric vehicle uptake and smart charging by 2025”. The state also plans to have all new passenger vehicles sold within its borders be electric by 2035.
SA had initially planned to impose a road user tax on EVs, which it would gradually make up for fuel excise tax as more customers purchase them; however, this contentious program is scrapped. But there is still high support for this measure among the politicians in the state.
The road user tax was supposed to start when EVs account for 30 per cent of all new car sales in South Australia – or by July 2027 at the latest.
The state was also offering a subsidy of up to $2000 to install an EV smart charger at home, capped at 7500 households, but this was axed in the 2022/23 budget.
Tasmania
Tasmania launched an Electric Vehicle Rebate scheme in November 2023, which offered rebates of $2000 for new EVs and second-hand (but ‘new to Tasmania’) electric cars.
However, all 375 rebates available for the scheme were claimed by April 2024, and at the time of writing the government was no longer accepting new applications.
In theory, there is still the possibility of getting a rebate if some of the original registrations are deemed ineligible, so it pays to check with the relevant government department. It is not available to plug-in hybrids.
Tasmania is also providing no-interest loans of between $500 and $10,000 to install charging infrastructure for EVs. The three-year loans are available to eligible households, small businesses, and non-profit organisations.
The state no longer has a two-year stamp duty exemption for all new and used EV sales, which carries no price cap. The two-year registration freebie for hire car companies buying EVs has been scrapped.
Victoria
The Victorian government eliminated its electric vehicle subsidy effective June 30, 2023.
The state’s ZEV scheme, launched in May 2021 and initially meant to run until May 2024, offered rebates of up to $3000 for eligible EVs with a retail price up to $68,740 – as many as 20,000 rebates.
The Victorian government pulled the plug on the scheme as part of cost-cutting measures introduced to curb the state’s growing debt.
New Jersey remains committed to its goal of achieving 50 percent of all new cars with no tailpipe emissions by 2030, on the road to net zero emissions by 2050.
Victoria has also axed its highly unpopular EV road user tax, which was challenged in the High Court and overturned, forcing the state government to refund charges (with interest) to electric car owners.
For electric vehicles, it was set to pay 2.5c/km, while the PHEVs were to pay 2.0c/km, meaning this translated to around $400 a year for the average motorist.
Already, the Victorian government has previously committed $19 million to the state’s charging network of EVs, $10 million to change over the government fleet to EVs, and $20 million towards a new electric bus trial.
Western Australia
Western Australia is sticking with subsidies for electric vehicle buyers, announcing an extension to its Zero Emissions Vehicle (ZEV) rebate in May 2024.
The $60 million scheme was launched in May 2022, offering a $3500 rebate on eligible EVs – and hydrogen fuel-cell electric vehicles – that retail for less than $70,000.
The $5.2 million extension into 2024 means an additional 1485 rebates are now available to EV buyers in the state beyond the original 10,000 limit.
WA had also promised to spend $22.6m on charging infrastructure. Of this, $10m was set aside for “not-for-profits and small and medium-sized businesses” in an effort to significantly cut their costs for installing EV infrastructure – by as much as 50 per cent in some instances.
Western Australia was also poised to join other states in implementing a distance-based road user charge on EV and PHEV owners from July 1, 2027.
It was also supporting the installation of charging stations at roughly 160km spacings statewide, and committed to converting a minimum of 25 percent of its governmental passenger car and SUV inventory to zero-emission vehicles by 2026 as part of its journey toward net-zero emissions by 2050.
Why Go Electric? The Long-Term Benefits of EVs
While the monetary benefits of incentives on EVs are attractive, there are so many more reasons to consider changing over to an electric vehicle. Here are a few examples:
- Emissions are cut down: Electric vehicles have no tailpipe emissions and therefore make them a cleaner and more environmentally friendly choice.
- Less expensive running costs: Electric vehicles are less expensive to run than their petrol counterparts. The cost of fuel and maintenance is significantly reduced.
- Smoother, quieter driving: Electric vehicles offer smoother and quieter rides, making the daily commute very comfortable.
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