Across Australia, there are a bunch of EV incentives on offer, depending on the state you live in.
Here’s what EV incentives are offer in every Australian state. These incentives can make the cost of an EV come down quite a bit, however you should know about their conditions, requirements and limits.
Federal EV incentives
Unfortunately, we have precisely zero federal government incentives to encourage electric vehicle purchases in Australia. Zero. Nil. Nada.
The only benefit to owning an EV, federally speaking, is a slight decrease on the luxury car tax (LCT). As of July 2021, the threshold was again increased to $79,659 and $69,152 for fuel-efficient vehicles and combustion engines, respectively.
But this is just a recent improvement. Prior to the 2020 – 2021 financial year there was only a few hundred dollars difference in the LCT threshold between combustion and fuel-efficient vehicles. It’s also not specific to EVs only.
That being said, Labor’s electric vehicle policies show some promise, with plans to chart out charging highways across Australia, plans to remove the fringe benefits tax on some EVs and plans to remove the import tariff on some EVs. These policies are yet to come into fruition (they were election policies).
New South Wales
As of September 1, 2021, New South Wales offers a $3,000 rebate for battery-electric or hydrogen fuel cell cars purchased. The caveat? The vehicle has to be priced below $68,750 including GST. Keep in mind though that these rebates are on offer to a limited amount of buyers.
Additionally, the state government will waive stamp duty payable on both new and used EV and hydrogen fuel cell vehicles purchased for less than $78,000 including GST.
Combined, these two offers can lower the cost of purchasing an electric vehicle by over $5,000.
It’s worth noting that the government also plans on introducing a new EV tax that will see drivers pay 2.5c per kilometre (EVs) and 2c per kilometre (hybrids). However, this tax has been deferred until 2027.
Additionally, New South Wales has fairly detailed plans around rolling EV chargers out across the state.
Electric Vehicles purchased in Victoria are exempt from the luxury car stamp duty, which means you only pay $8.40 per $200 market value compared to up to $18 for combustion engine vehicles. However, this only benefits you if you’re purchasing a vehicle worth more than the $68,740 threshold.
Additionally, Victorians can cop $100 off their annual registration costs for simply owning an EV.
The Victorian Government has also introduced the ZEV subsidy, which can lower the cost of a new EV under $68,740 by $3,000. Keep in mind though that these rebates are on offer to a limited amount of buyers.
The state is also rolling out EV chargers.
Tasmania offers a two-year stamp duty waiver on both new and second-hand electric vehicles. This is estimated to offset the cost of purchasing mid-range EVs by as much as $2,000.
Additionally, the state has announced it’s funding $600,000 in grants to help develop more charging points across the region, particularly in popular tourism hotspots.
In terms of stamp duty, drivers pay $2 per $100 in value up to $100,000, and $4 per $100 after the threshold. Comparatively, combustion engine vehicles pay up to $6. The Queensland government has crunched the numbers and asserts you would save an estimated $4,869.75 over five years.
Australian Capital Territory
Furthermore, the ACT government offers interest-free (yes, 0 per cent interest) loans of up to $15,000 to help cover the upfront costs of buying an electric vehicle, which makes it easier to invest in things like smart chargers, which are helpful but costly. This has been expanded as of December 6, allowing Canberrans to use the entire $15,000 loan in purchasing an electric vehicle, with up to 10 years to repay it.
South Australia offers subsidies of up to $3,000 in the state, along with a three-year taxation exemption. The state is also focusing on rolling out chargers.
Additionally, it’s worth noting that South Australia has passed a similar tax to Victoria that will see EV drivers pay 2.5 cents per kilometre and 2 cents per kilometre for hybrid drivers. However, the introduction of this tax has been postponed until July 2022. The new South Australian government is trying to push this back to 2027.
From May 10, Western Australian EV buyers can apply for a $3,500 rebate if they purchase an EV under $70,000. Moreover, the state is offering grants to businesses and local governments to install electric vehicle charging stations.
That being said, from July 1, 2027, EV and hydrogen vehicle owners will need to pay 2.5 cents for every kilometre driven.
If you’re an Uber, taxi or charter vehicle driver, you will be exempt from the 10 per cent on-demand transport levy in Western Australia by driving an electric vehicle.
For personal use, the major incentive to purchase an EV in Western Australia comes as part of the EV Home Plan Incentive, which offers $200 and 60km free per year for charging during off-peak periods.
The Northern Territory has a fairly limited plan surrounding EV uptake.
From July 2022 to June 30, 2027, stamp duty is waived for electric vehicles up to a value of $50,000, along with the registration fee. Additionally, electric vehicle charger grants for businesses and individuals are available from July 2022.
Overall, EV incentives in Australia could stand to be a lot better, and here’s hoping the government will continue to roll out state and federal incentives in the coming months and years.
We’ll be sure to update this story as more incentives are announced.
This post has been updated since it was first published.