May 04, 2023

Exploring Electric Vehicle Incentives in Australia

In Australia, the government and various organizations have recognized the importance of transitioning to electric transportation and have introduced a range of incentives to encourage the adoption of EVs.

Financial Incentives

The Australian government, alongside state and territory governments, has implemented a variety of financial incentives to make electric vehicles more affordable for consumers. The federal government's Electric Vehicle Strategy offers a $3,000 rebate for electric vehicles priced under $68,740, encouraging potential buyers to make the switch. Similarly, some states and territories provide additional incentives, such as stamp duty exemptions and reduced registration fees, further reducing the upfront costs of owning an electric vehicle.

Key financial take-aways

Federal Government:

The federal government's Electric Vehicle Strategy offers a $3,000 rebate for electric vehicles priced under $68,740.
$500 million ‘Driving The Nation Fund’, which includes rolling out 117 EV charging stations and hydrogen refueling stations for key freight routes.

Australian Capital Territory (ACT):

A stamp duty exemption for newly purchased electric vehicles.
ACT drivers are also able to access up to $15,000 in interest-free loans to help cover the upfront purchase cost of an electric vehicle up to a cap of $77,565.

New South Wales (NSW):

EV drivers can also use T2 and T3 transit lanes across NSW
Tax rebate: 2.5c/km BEV, 2c/km PHEV – but only as of July 1, 2027
$171 million investment in infrastructure, including; $131m on ultra-fast chargers

Queensland (QLD):

$6000 rebate for first 15,000 new BEVs sold up to $68,000 and households earning less than $180,000 per year as of April 21, 2023 (backdated to March 16, 2022).A stamp duty rebate for newly purchased electric vehicles.
Lowest car registration for BEVs – $263 a year

South Australia (SA):

Three years' free registration for vehicles first registered from October 28, 2021 up to June 30, 2025A $1,000 rebate for the installation of electric vehicle chargers at home.
Up to $2000 to install EV smart chargers at home, but limited to 7500 households.
Investing $13.4million in its charging network – increasing points to 530 state-wide, most of which will have a 7kW capacity.

Tasmania (TAS):

Two years’ free stamp duty for new and second-hand EVs as of July 1, 2021
Two years’ free registration on EVs purchased by car rental companies and coach operators.

Victoria (VIC):

Reduced stamp duty rates
$100 discount on registration annually
Tax rebate 2.6c/km BEV, 2.1c/km PHEV from July 1, 2022

Western Australia (WA):

$3500 rebate for the first 10,000 Western Australians to buy an EV or FCEV from May 10, applying to vehicles under $70,000 before on-road costs.
2c/km km for plug-in hybrid vehicles, and 2.5c/km for any other electric vehicles.
235 charging stations of varying capacity ranging from <22kW to 350kW

Northern Territory (NT):

The Northern Territory government is developing a new electric vehicle strategy, but specific incentives are yet to be announced. However, electric vehicle owners in the Northern Territory can access the national government's rebate of $3,000 for eligible electric vehicles.

Conclusion

Australia is witnessing a paradigm shift in transportation as electric vehicles become increasingly accessible and attractive to consumers. The introduction of various incentives, coupled with a growing charging infrastructure network, is propelling the adoption of EVs across the country.