Explore the dynamic world of electric vehicle (EV) incentives in Australia with Alex.Bank. From federal initiatives to state-specific rebates, discover how making the switch to an EV not only benefits the environment but could also put money back in your pocket.
Australia's Electric Vehicle (EV) landscape is rapidly evolving, driven by a collective commitment to reducing emissions and embracing sustainable transportation. If you're considering an EV for your next car, this guide will navigate you through the world of government incentives, subsidies, and rebates.
Federal EV Incentives: Paving the Way for Sustainable Driving
The federal government has rolled out a series of initiatives to accelerate EV adoption:
- Imported Luxury cars valued above $76,950 face the luxury car tax (LCT). However, the Australian Government has set the LCT threshold1 for fuel-efficient and Zero Emissions Vehicles (ZEVs) at a higher amount of $89,332; to encourage the purchase of more fuel-efficient luxury cars.
- Since July 2022, customs duties2 have been removed for battery Electric vehicles (BEVs), plug-in electric vehicles (PHEVs), and hydrogen fuel-cell vehicles (FCEVs) below the LCT threshold.
- The 2022 Electric Car Discount Bill3 exempts low tailpipe emissions vehicles from Fringe Benefits Tax (FBT), making novated leasing more affordable.
State-Specific Incentives
Australian Capital Territory (ACT):
- Until June 30, 2024, all new and used zero emissions vehicles enjoy two years of free registration4.
- New zero emissions vehicles are exempt from stamp duty5, providing financial relief for EV buyers.
Victoria:
- Zero Emission Vehicles are exempt from luxury vehicle stamp duty rates6 and receive a $100 annual discount7 on vehicle registration from July 1, 2021.
Queensland:
- As of April 21, 2023, Queensland doubled its rebate for new EVs to $6,0008, with an increased purchase price threshold of $68,000.
- Electric and hybrid vehicles benefit from a 33% discount on stamp duty9, further promoting affordability.
South Australia:
- From October 2021, South Australia introduced a $3,000 rebate and three years of free registration10 for the first 7,000 BEVs or FCEVs under $68,750.
- As of August 14, 2023, 1,400 rebates are still available, encouraging continued EV adoption.
Western Australia:
- Since July 2022, Western Australia offers a $3,500 rebate11 for the first 10,000 buyers of new ZEVs, including BEVs and FCEVs, with a dutiable value of $70,000 or less.
- This rebate aims to make ZEVs more accessible and affordable for Western Australians.
Tasmania:
- Tasmania currently lacks specific EV incentives but provided a two-year stamp duty waiver for all new and used EV purchases12 from July 1, 2021, to June 30, 2023.
Northern Territory:
- For five years from July 2022, buyers of new or used EVs, fuel-cell, and plug-in hybrids receive a $1500 discount in stamp duty for vehicles up to $50,00013.
- Homeowners and businesses can apply for grants to buy and install EV chargers until June 30, 2024.
New South Wales:
- NSW is phasing out their EV purchase rebate and Stamp duty exemption from December 31, 2023, and January 1, 2024.
- Instead, they have announced a new $263 million13 investment into RV infrastructure. This infrastructure will include further deployment of fast chargers along key routes, more kerbside street chargers near apartment blocks, and upgrades to grid capacity to support EV fleets.
Steering Towards a Greener Future
As Australia accelerates towards a sustainable future, the incentives and rebates offered at both federal and state levels can create a compelling case for embracing electric vehicles. Whether you're motivated by environmental consciousness or financial savings, the road to a greener future is paved with opportunities for those considering the EV switch.