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Electric Car Incentives in Australia: State by State Guide (2022)

Electric Car Incentives in Australia: State by State Guide (2022)

Everything you need to know about Australian electric vehicle (EV) government incentives or grants is here. We break down, summarise and (where possible) outline the process of how to apply for each state/territory. If you need to familiarise yourself with EV acronyms, we recommend referring to our EV dictionary.

Types of Electric Car Incentives in Australia

Before we go into the state-by-state breakdown, there are two main financial incentives that commonly feature in each state’s policy.

1. EV Stamp Duty exemption/reduction

Every vehicle purchased in Australia, new or used, is required to pay stamp duty. The amount payable is based on the value of the car. The financial incentives is therefore variable in nature, however, it is sometimes subject to a cap.

2. EV Rebates/Subsidies

Often used interchangeably, rebates/subsidies are a flat financial incentive. How does it work? If the vehicle is equal to or lower than the purchase value limit, you are eligible for the full amount, otherwise you receive nothing.

Federal Government

The Australian Government currently does not provide any direct EV incentives, outside of slightly lower luxury car tax (LCT) for "fuel efficient vehicles". In the case of EV's LCT will take effect for purchases from $79,659 versus $69,152 for other vehicles.

Direct EV incentives are unlikely to be introduced by the Liberal government in the foreseeable future based on the recent announcements made at COP26.

It is not all bad news however; 2021 saw the following state governments introduce a range of incentives to encourage the purchase of EVs: NSW, VIC, ACT, SA, NT and TAS. We are still waiting on further announcements from the QLD and WA state governments.

New South Wales

The NSW government was rated as having the best EV policy by the Electric Vehicle Council (EVC) in August 2021, scoring a 9/10. Our analysis indicates it provides the highest amount of direct incentives to the car buyer.

Announced in June 2021, these incentives take effect from 1 September 2021. EVs purchased in NSW may be eligible for a stamp duty exemption and a $3000 EV rebate. Collectively, they provide as much as $5538 in financial incentives.

Free Stamp Duty

  • A stamp duty exemption for eligible EVs up to $78,000 (inc GST). This equates to a maximum exemption of $3000. It applies to personal and business use and new and used vehicles
  • Plug-in-hybrids (PHEVs) are not eligible.

$3000 Rebate

  • A rebate of $3000 for eligible EVs up to $68,750 (inc GST) is also available. If the vehicle exceeds this limit it will not be eligible for any rebate. This is available for the first 25,000 eligible vehicles. It is not known whether the figure will be increased once the quota is exceeded.
  • Used EVs and plug-in-hybrids are not eligible.
  • Vehicles procured under a novated lease are not eligible for the NSW EV rebate.

Application process

Upon purchase you will still need to pay the standard statutory costs like stamp duty on your EV like any car purchase. You can then apply for both the stamp duty and exemption and rebate through this portal.

A road user charge will take effect following the earlier of: EVs comprise 30% of new vehicle sales or 1 July 2027.

Australian Capital Territory

The Australian capital was rated as having the second-best EV policy by the EVC, scoring an 8/10. The ACT Government was the earliest to introduce incentives for EV purchases, announcing them on 24 May 2021. EVs purchased in the ACT may be eligible for full stamp duty exemption and two years of free registration.

Unlike NSW, there is no limit on the value of the vehicle, meaning the stamp duty waiver is uncapped. For more information on the ACT scheme, you can go here.

Free Stamp Duty

  • An uncapped stamp duty exemption for eligible EVs. Based on the most expensive vehicle in our database, the Porsche Taycan Turbo S ($337,900), this provides an exemption worth $15,995.
  • The exemption applies to both personal and business use
  • New and demonstrator EVs are eligible. Used EVs and plug-in-hybrids are not.

Free Vehicle Registration

Free registration applies for eligible EVs for two years. The same eligibility criteria as above applies.

Interest-free Loan

Under the Sustainable Household scheme, interest-free loans of up to $15,000 will be available to eligible homeowners to invest in a range of sustainable products for their homes, including new and used zero emissions vehicles and household zero emissions vehicle charging infrastructure. More information is available here

Application process

Upon registration of your vehicle, the stamp duty and registration payable will be exempted (or reduced) depending on which environmental category your vehicle falls under.

The ACT government has yet to announce details of a road user charge for electric vehicles.

Victoria

Victoria’s EV policy was ranked equal fifth with a 6/10 from the EVC. It was marked down due to the road user charge currently in place. Announced (and taking effect) on 2 May 2021, EVs purchased in Victoria are eligible for a flat $3,000 rebate.

$3000 Rebate

  • A rebate of $3000 for eligible EVs up to $68,740 (inc GST) is available. If the vehicle exceeds this limit, it will not be eligible for any rebates.
  • It is available for the first 20,000 vehicles. Check how many subsidies are available here
  • Used EVs and plug-in-hybrids are not eligible.

Application process

The rebate will be deducted from the sale price at the point of sale by car dealers participating in the ZEV subsidy program. Dealers can be found here. Further details on the Victorian EV subsidies can be found here.

From 1 July 2021 road user charge for EV owners of 2.5c/km, and a separate charge for PHEV owners of 2.0c/km.

South Australia

South Australia’s EV policy ranked equal fourth with a score of 6/10 from the EVC. Eligible EVs purchased in South Australia are eligible for a subsidy and one year of free registration.

There is no stamp duty exemption. Collectively, the incentives provide as much as $3,500 (assuming registration costs of $500 p.a.) in financial benefit.

$3000 Rebate

  • A flat $3000 subsidy for eligible EVs up to $68,750 (inc GST) is available. If the vehicle exceeds this limit it will not be eligible for any rebate.
  • This is available for the first 7000 vehicles. Check how many subsidies remain available here
  • Used EVs and plug-in-hybrids are not eligible.

Free Vehicle Registration

Free registration applies for eligible EVs for one year. The same eligibility criteria as the stamp duty exemption applies.

Application process

No information is currently available on how to apply.

A road user charge of 2.5c/km for EVs and 2.0c/km for PHEVs. It will take effect from the earlier of 1 July 2027 or when EVs comprise 30% of new vehicle sales.

Queensland

$3000 Rebate

In March 2022, the Queensland state government announced the introduction of a $3000 government rebate for EVs costing $58,000 or less.

Queensland also provides reduced stamp duty rates for electric vehicles. Refer below table for rates.

No road user charge has been formally announced.

Northern Territory

The Northern Territory was ranked third by the EVC, scoring a 7/10. From July 2022, buyers of new or used eligible EVs will receive a $1500 discount on stamp duty and five years of free registration. Collectively, the incentives provide as much as $4,000 (assuming registration costs of $500 p.a.) in financial benefit.

Free Stamp Duty

  • A stamp duty exemption of up to $1500 for eligible EVs up to the value of $50,000.
  • Applies to personal and business use and new and demonstrator vehicles.

Free Vehicle Registration

Free registration applies for eligible EVs for five years. The same eligibility criteria as the stamp duty exemption applies.

Application process

No information available

A road user charge has yet to be announced.

Tasmania

Tasmania’s EV policy ranked equal third by the EVC scoring 7/10. From 1 July 2021. Eligible EVs can apply for an uncapped stamp duty exemption. There is no rebate/subsidy.

Free Stamp Duty

  • A stamp duty exemption for eligible EVs with no limit on the value of the vehicle meaning the value of the waiver is also uncapped. Based on the most expensive vehicle in our database, the Porsche Taycan Turbo S ($337,900), this provides an exemption worth $13,866.
  • It applies to personal and business use and new and demonstrator vehicles.
  • Used EVs and plug-in-hybrids are not eligible

Application process

Upon registration of your vehicle, you will need to apply for an exemption and the stamp duty will be waived.

A road user charge will take effect following the earlier of: EVs comprise 30% of new vehicle sales or 1 July 2027.

Western Australia

$3500 Rebate

On 10 May 2022, the WA state government announced the introduction of a $3500 government rebate for EVs costing $70,000 or less.

EV owners may receive up to $200 (ex GST) through the Synergy EV Home Plan

A road user charge of 2.5c/km will apply from 1 July 2027.

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