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EV Rebates and Incentives

To help support the uptake of Electric Vehicles (EVs), many state and territory governments have introduced a range of rebates and incentives. Many have also injected significant funding into public charging infrastructure.

The information below summarises the main EV rebates and incentives currently available in Australia by state/territory, as well as key details on public charging infrastructure investment.

We have also included information on EV road user charges, existing federal and government incentives and EV policies, as well as Labor’s proposed Electric Car.

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What are EV incentives?

Government agencies offer EV incentives in Australia and vary depending on the state and territory. On occasion, the federal government may also provide EV incentives. Electric vehicle incentives in Australia are also subject to change at the agencies’ discretion and may change at any time. 

Electric car incentives in Australia aim to support EV uptake across the nation. Australian EV incentives will make purchasing electric cars lighter on your wallet by reducing the upfront cost, providing tax incentives, and reducing on-road costs. EV incentives may also extend to residents and businesses, and EV accessories such as chargers.

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Types of electric car incentives in Australia

The various types of incentives for electric cars in Australia can be broadly categorised into two main, financial incentives and benefits that are typically included in the policies of each state.

Exemption/reduction of EV stamp duty

Every vehicle purchased in Australia, regardless of whether it is new or used, necessitates the payment of stamp duty, which is calculated based on the car’s value. The financial incentive for electric vehicles (EVs) in this category eligible vehicle is not fixed. It varies according to stamp duty exemption and to the value of the car, although there may be a maximum limit imposed.

Rebates/subsidies for EVs

Rebates and subsidies are terms often used interchangeably, but subsidies are limited, and they represent a fixed financial incentive. How does it work? If the eligible vehicle’s purchase value falls within or below the specified limit, you are eligible to receive the entire amount of the incentive. Otherwise, no incentive is provided.

State
Stamp Duty
Rebate/
Subsidy/Incentive
ACT
✔️
✔️
NSW
✔️
✔️
NT
✔️
SA
✔️
QLD
✔️
✔️
TAS
✔️
WA
✔️
VIC
✔️
✔️

State and Territory Government EV Rebates and Incentives

Australian Capital Territory

  • Stamp duty on cars exemption: for new EVs, equivalent to around $2,700 for a $60,000 car that emits more than 221g of CO2 per km.
  • Two years free registration: for all EVs, new or used.
  • Sustainable Household Scheme: zero-interest loans of between $2,000 and $15,000 to eligible households to help with the upfront costs of investing in energy-efficient upgrades, including zero-emission vehicles.
  • Public charging infrastructure: $1.3 million funding towards the installation of 50 public EV chargers

NSW EV rebates

  • $3,000 NSW electric car rebate: for the first 25,000 electric vehicles sold under $68,750
  • Stamp duty on cars exemption: for new and used EVs under $78,000
  • Public charging infrastructure: $170 million to be spent on charging infrastructure.

Queensland EV incentives

  • $3,000 subsidy: for any new electric vehicle priced under $58,000, starting July 2022 and continuing for three years. An increase in the rebate from $3000 to $6000 for qualified households earning up to $180,000 per year in total gross household income. The new requirements, as well as an updated application form, will be available online beginning July 1, 2023. Anyone who buys a new EV is encouraged to keep documentation of purchase in order to qualify for the reimbursement.
  • Reduced stamp duty on cars: Plug-in Hybrid Electric Vehicles (PHEVs) and Battery Electric Vehicles (BEVs) have a reduced registration duty rate of 2% (compared to 4 cylinder vehicles which have a registration duty rate of 3%).
  • Reduced registration: BEVs attract the lowest level of registration.
  • Public charging infrastructure: $10 million funding plus ‘Electric Vehicle Superhighway’ designed to provide favourably spaced high speed charging stations the length of the state’s east coast

Victoria EV incentives

  • $3,000 subsidy: for new electric and hydrogen vehicles under $68,740 (20,000 available). Applications will be accepted until 6 pm on June 30, 2023.
  • Flat-rate stamp duty: flat stamp duty of $8.40 per $200 market value regardless of the purchase price.
  • Registration discount: all EVs registered in Victoria receive a $100 discount on their annual registration.
  • Public charging infrastructure: $19 million infrastructure package.

South Australia EV rebate

  • $3,000 EV rebate: on the first 7000 new battery-electric vehicles under $68,750 incl. GST.
  • Three years free registration: New battery-electric cars under $68,750 incl. GST is eligible for three years of free registration fees, although other insurance-related charges may apply.
  • Public charging infrastructure: $12 million state government grant for SA’s Royal Automobile Association (RAA) to establish 536 ‘fast’ and ‘rapid’ charging stations across 140 rural, regional and metropolitan locations.

Western Australia EV rebate

  • $3,500 rebate: for new EV or hydrogen fuel-cell vehicle (FCEV) up to a value of $70,000 (10,000 available under $36.5 million Clean Energy Car Fund)

  • Public charging infrastructure: $21 million EV charging network with 45 stations stretching from Kununurra down to Perth, and out to the regional centres of Esperance and Kalgoorlie. $22.6 million for additional charging infrastructure including grants, trialling EV charging facilities at four Perth train stations, and an additional eight EV chargers to extend the state charging network to the South Australian border. Full package information can be viewed here.

Tasmania EV incentives

  • Stamp duty on cars exemption until June 30, 2023: for new and used electric vehicles, saving around $2,400 from the on-road price of a $60,000 vehicle.
  • Two years free registration: only for EVs used for rental purposes, covering both private ride-sharing operators, and rental companies.
  • Public charging infrastructure: $600,000 to expand DC public fast charging network.

Northern Territory

  • Stamp duty on cars discount: electric vehicles and plug-in hybrids with more than 50km of the range get a $1,500 stamp duty discount until mid-2027 (set to take effect in mid-2022)
  • Free registration: until mid-2027
  • EV Charger Grants Scheme: $1,000 for residential property and $2,500 for a business

EV Road-User Charges

Some states have announced the introduction of distance-based ‘road-user’ charges for zero and low-emissions vehicles. While these charges have been met with criticism from car manufacturers, industry groups, infrastructure companies and environmentalists, state governments have hit back saying that these charges are necessary to help maintain the road networks.

Below is a summary of these charges by state:

  • VIC:  2.6 cents per km for electric vehicles and 2.1 cents for plug-in hybrids (already in effect).
  • NSW: 2.610 cents per kilometre for a battery EV or hydrogen fuel cell EV and 2.088 cents per kilometre for a plug-in hybrid EV(2022-23 financial year).
  • SA: 2.5 cents per km for electric vehicles.
  • WA: 2.5 cents per km for electric and hydrogen vehicles and 2 cents per km for plug-in hybrid vehicles (from 2027).

Federal Government Future Fuels Fund

While in leadership, the Morrison government had not officially introduced or even proposed any form of EV incentive outside its existing ‘green’ vehicle registration fees and threshold for the Luxury Car Tax (LCT).

That said, they had committed $250 million in funding to the Australian Renewable Energy Agency’s (ARENA) Future Fuels Fund, under its Future Fuels and Vehicles Strategy.

$24.55 million of that funding has already been allocated to the construction of 403 fast charging stations to be installed around the country.

Labor’s Electric Car Discount

As part of their election policy, the Australian Labor Party announced it will introduce an Electric Car Discount.

As part of the Discount, Labor stated they will exempt many electric cars from:

  • Import tariffs – a 5 per cent tax on some imported electric cars; and
  • Fringe benefits tax – a 47 per cent tax on electric cars that are provided through work for private use.

These exemptions will be available to all eligible electric vehicles and cars below the luxury car tax threshold for fuel efficient vehicles ($77,565 in 2020-21). The Luxury Car Tax (LCT) threshold for low-emission vehicles has been raised to $84,916 in 2022-2023.

The Luxury Car Tax (LCT) Threshold
Financial yearFuel efficient vehicles
2023-24
$‎89,332
2022-23
$‎84,916
2021-22
$‎79,659
2020-21
$‎77,565

To support the Electric Car Discount, Labor also promised to work with industry, unions, states and consumers to develop Australia’s first National Electric Vehicle Strategy, including consideration of:

  • further measures to increase electric car sales and infrastructure;
  • policy settings to encourage Australian manufacturing of electric car components (especially batteries) and possibly cars themselves; and
  • ways to address the policy implications of declining fuel excise.

Labor will consider how the Commonwealth’s existing investment in infrastructure can be leveraged to increase charging stations across the country and consider how other existing Commonwealth investments, including in its fleet, property and leases, can also be leveraged.

Labor’s Electric Car Discount will begin on 1 July 2022 and be reviewed after three years, in light of electric car takeup at that time.

Updated: June 2023

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