Want to buy an electric vehicle in Australia ? But you are worried about the expenses. Relax! The Australian government has implemented various rebate and incentive programs to accelerate the adoption of electric vehicles, recognizing the pivotal role EVs play in promoting environmental sustainability. In this blog, let us discuss the EV incentives and rebates in Australia, shedding light on their significance in promoting green mobility.
The Current Landscape of EV incentives and rebates in Australia
Australia boasts a diverse range of incentive programs, including federal initiatives and state-specific rebate programs, aimed at making the purchase of an EV in Australia more attractive to its citizens. Let’s look at both of these type of incentives:
Federal EV incentives and rebates in Australia
FBT Exemption:
Effective from July 1, 2022, eligible low- or zero-emission vehicles, including EVs and PHEVs up to $89,332 in value, are exempt from fringe benefits tax (FBT). This exemption significantly reduces the annual costs for EV owners, making novated leases more affordable.
PHEV Exemption Deadline:
While the FBT exemption applies to PHEVs until April 1, 2025, it emphasizes the temporary nature of this benefit for plug-in hybrid vehicles.
0% Import Tariff:
The Federal Government has eliminated the 5% import tariff on EVs, providing a cost advantage for eligible vehicles below the luxury car tax threshold.
Higher LCT Threshold:
EV owners enjoy a higher luxury car tax (LCT) threshold, set at $89,332 for the 2023/24 financial year, compared to the $76,950 threshold for non-EVs. This allows EV drivers to choose more expensive vehicles without incurring additional LCT costs
State-specific EV incentives and rebates
1. New South Wales EV incentives
NSW EV Rebate: In New South Wales, there’s a $3,000 rebate for the first 25,000 new battery electric and hydrogen fuel cell vehicles with a value under $68,750. But, this rebate doesn’t apply to plug-in hybrid electric vehicles (PHEVs).
NSW Stamp Duty Exemption: If you buy or use an eligible EV (weighing less than 4.5 tonnes) with a value up to $78,000, you won’t have to pay stamp duty. This could save you up to $3,000.
These incentives end on January 1, 2024. However, if you make a purchase or deposit before that date, you can still get the benefits, even if your vehicle is delivered later. Just make sure to submit your application with proof of purchase and deposit payment by June 30, 2024.
2. Victoria EV incentives
Registration Fee Discount: In Victoria, owners of light zero and low emission vehicles (ZLEVs) can enjoy an annual registration fee discount of up to $100.
Reduced Motor Vehicle Duty Rates: Victoria offers reduced motor vehicle duty rates for ‘green’ vehicles. This flat rate system ensures that EV drivers purchasing high-value vehicles (above $76,950) pay less in motor vehicle duty compared to those buying standard passenger cars of similar value.
3. Queensland EV incentives
Electric Vehicle Rebate Scheme: Queensland encourages the adoption of electric vehicles by providing rebates of $3,000 or $6,000. The $6,000 rebate is applicable to eligible electric vehicles (EVs) purchased up to $68,000 on or after April 21, 2023, with a household income of $180,000 or less. The $3,000 rebate follows similar conditions, and businesses are eligible for this tier.
If you purchased an EV (up to $58,000) after March 16, 2022, you can apply for an additional $3,000 rebate. This option is available for households with a total annual taxable income of $180,000 or less.
Reduced registration duty and fee: Hybrid or electric vehicle drivers enjoy the state’s lowest registration duty rates and fees, promoting cost-effective vehicle ownership.
4. South Australia EV incentives
SA EV Subsidy: South Australian drivers can benefit from a $3,000 subsidy for new battery electric and hydrogen fuel cell vehicles under $68,750 (incl. GST), fostering eco-friendly choices. This subsidy is effective from 28 October 2021. The subsidy is exclusive to new electric and hydrogen vehicles, excluding PHEVs and used cars.
Registration Fee Exemption: In addition, qualifying vehicles receive a three-year registration fee exemption, easing the financial burden for new battery electric and hydrogen fuel cell vehicles up to $68,750 (incl. GST) registered from October 28, 2021, to June 30, 2025.
5. Western Australia EV incentives
Zero Emission Vehicle (ZEV) Rebate Scheme: Drivers of new light zero-emission vehicles can secure a significant $3,500 rebate, applicable to vehicles with a dutiable value of $70,000 or less. The rebate is available for the first 10,000 eligible vehicles licensed in WA or until May 10, 2025.
6. Northern Territory EV incentives
Stamp Duty Waiver: From July 1, 2022, to June 30, 2027, the Northern Territory exempts drivers from paying stamp duty on plug-in electric vehicles valued up to $50,000, translating to potential savings of up to $1,500.
Registration Fee Waiver: EV owners in the NT can avail an additional benefit with the waiver of the $91 registration fee, reducing financial burdens associated with electric vehicle ownership.
Charger Grants Scheme: To promote EV charging infrastructure, the NT Government offers grants, providing $1,000 to residential and $2,500 to business EV owners for the purchase and installation of charging stations.
7. ACT EV incentives
Stamp Duty Exemption: As of August 1, 2022, all new and used ZEVs, including motorcycles, enjoy a full exemption from motor vehicle duty, promoting the adoption of eco-friendly transportation.
Free Registration Benefits: Owners of ZEVs purchased between May 24, 2021, and June 30, 2024, receive two years of complimentary vehicle registration, encouraging sustainable choices.
PHEV Registration Discounts: Hybrid Electric Vehicle (HEV) owners with emissions below 130g/km, registered between July 1, 2023, and June 30, 2024, enjoy a 20% discount on registration fees for up to 12 months.
Interest-Free Loans for Eco-Upgrades: Eligible ACT residents can apply for interest-free loans ranging from $2,000 to $15,000, supporting the transition to energy-efficient upgrades, including electric vehicles and household battery storage systems.
Conclusion
The Australian government has introduced the National Electric Vehicle Strategy (ref) to encourage more people to use electric vehicles (EVs) across the country. As we have outlined in the blog, to make sustainable transportation more affordable and accessible, the Australian government has introduced various EV incentives and rebates.
Australia aims to reduce emissions by 43% below the 2005 baseline by 2030, showing a significant commitment to addressing climate change. Aligned with the Net Zero Plan, the ultimate goal is for Australia to achieve carbon neutrality by 2050, demonstrating dedication to the global fight against climate change.
Shifting to green mobility is one of the least we can do to create a sustainable future. With support from the Australian government, now is the right time to consider purchasing an EV in Australia, not only contributing to a sustainable future but also benefiting from various incentives.
