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Electric Vehicle Incentives and Rebates for Businesses (2022)

Fleet of Tesla Model 3 at charging station

If you're an Australian business looking to switch to transition your fleet to electric vehicles, this guide is a must-read.

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.

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 tax exemption/reduction

Every vehicle purchased in Australia, new or used, is required to pay stamp duty and potentially other taxes. 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 and Grants

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 EV incentives

When parliament meets at the end of July 2022, legislation that underpins the 'Electric Car Discount is expected to be approved. From 1 July the following government charges will be removed:

These will be made available on electric cars below the luxury car tax (LCT) threshold for fuel-efficient vehicles ($84,916 in 2022-23). You can view which vehicles are eligible at the end of this guide.

The removal of FBT will have the most pronounced effect on electric car affordability. It is however expected to benefit mainly businesses fleets and those procuring an electric car through a novated lease.

For more information on how your business will benefit refer to this guide.

The higher LCT for electric vehicles ($84,916) compared to other vehicles ($71,849) equates to a saving of up to $3920 on the purchase price of a vehicle.

Additional information on how this scheme will

New South Wales EV Incentives

Overall the state of NSW provides the highest amount of direct incentives to electric car buyers.

Taking 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 EV 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.
  • Used EVs and plug-in-hybrids are not eligible.
  • Businesses with less than ten vehicles at the time of applying for the rebate can access the rebate for up to two new vehicles.
  • Vehicles procured under a novated lease are not eligible for the NSW EV rebate.

EV Charger Grant

Co-funding grants are available for the purchase and installation of EV chargers for businesses in eligible NSW destinations.

The grants will fund the following for up to 4 EV chargers per site:

  • 75% towards the cost of an eligible 7 kW and/or 22 kW electric vehicle charger(s)
  • 75% towards the cost of installation (capped at $1,000 per charger)
  • 50% towards a 2-year EV charger software subscription from the EV charger software list.

More details on this grant can be viewed here

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.

Victoria EV Incentives

From 2 May 2021, EVs purchased in Victoria are eligible for a flat $3,000 subsidy. The ZEV Subsidy is available to Victorian residents and businesses with premises in Victoria.

$3000 Subsidy

  • A subsidy 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.
  • Subsidies are limited to one per individual person and two per business.

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.

Australian Capital Territory EV Incentives

From 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

EV Fleet Advisory Service

Facilitated by the ACT Government, the Fleet Advisory Service will provide Canberra businesses and community organisations with independent and targeted advice, and offer hands on experiences with ZEVs and associated technologies in order to guide, equip and support them to adopt these ‘greener’ vehicle options in their fleets.

More details on this service can be viewed 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.

Queensland EV Incentives

$3000 Rebate

From 1 July 2022, rebates are available to eligible Queensland individuals and businesses for EVs purchased in Queensland on or after 16 March 2022.

  • A rebate of $3000 for eligible EVs up to $58,000 (inc GST) is available.
  • Vehicles must be purchased through a licensed motor vehicle dealer.
  • Rebates are limited to one per individual.
  • Businesses can claim up to 5 rebates per financial year.
  • Additional information on the QLD Government's scheme can be viewed here.

Application process

Applications for the rebate can be made through this QLD government portal.

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

No road user charge has been formally announced.

South Australia EV Incentives

From 28 October 2021, EVs purchased in South Australia are eligible for a subsidy and a three-year exemption registration.

There is no stamp duty exemption.

Additional information on the SA Government scheme can be viewed here.

$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.
  • Subsidies are limited to one per individual person residing in South Australia and two per business located in South Australia.
  • 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 three years. The same eligibility criteria as the subsidy applies.

Application process

You can apply for the relevant incentive through this SA government portal.

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.

Northern Territory EV Incentives

From July 2022, buyers of new or used eligible EVs will receive a $1500 discount on stamp duty and five years of free registration.

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.

EV Charger Grant

  • Grants are available for residents and businesses for the installation of EV Chargers.
  • Under the scheme, 100 residential grants of $1,000 and 80 business grants of $2,500 are available.

Application process

No information available

A road user charge has yet to be announced.

Tasmania EV Incentives

Free Stamp Duty

  • From 1 July 2021, a stamp duty exemption applies to eligible EVs purchased in Tasmania.
  • There is no limit on the value of the vehicle meaning the value of the exemption 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 EV Incentives

$3500 Rebate

From 10 May 2022, residents and businesses in WA are eligible for a $3500 government rebate for EVs costing $70,000 or less.

You can find out more information on the rebate here.

Vehicles financed through a Novated Lease will be eligible for the rebate.

EV Charging Grant

Grants are available for up to 50% of the cost of installing electric vehicle (EV) charging infrastructure for not-for-profits, and small and medium-sized businesses.

Additional information on the grant can be viewed here.

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

Application process

Information on the application process can be found here

Which EVs are eligible for which state-based incentive?

Below we’ve listed every electric car available for sale that will be eligible for the federal government and various state-based EV incentives.

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