EV Incentives

In Australia, vehicles with high fuel efficiency, can benefit from a reduced luxury Car Tax, resulting in potential savings of up to $3,920. The tax is charged at 33c for every dollar exceeding a defined limit. The limit for most cars is $71,849 as of 2022, while for fuel-efficient cars it is set higher at $84,916.

Treasury Laws Amendment Bill; Fringe Benefit Tax (FBT) exemption  

For qualifying new zero or low emissions vehicles registered from 1st July 2022 onward has been introduced by the Australian Government. Electric cars with a price below or equal to $84,916 (inclusive of GST) are eligible for an FBT exemption. More information is available in the Treasury Laws Amendment (Electric Car Discount) Bill 2022.

 

Brand new zero emissions vehicles, including electric cars, qualify for a complete stamp duty exemption. This applies to new cars and those sold by a licensed vehicle dealer within a year of their first registration in the ACT.

From 24th May 2021 until 30th June 2024, new or used zero emissions vehicles bought or acquired in the ACT will benefit from two years of free registration. Eligibility ensures that the registration component of vehicle registration fees will be waived. Other fees, charges, or levies associated with vehicle registration still apply.

Under the ACT Sustainable Household Scheme, new or used zero emissions vehicles bought or acquired in the ACT with a price less than $84,916 qualify for a 0% interest rate for up to $15,000 of their vehicle price when financed. Visit the ACT Sustainable Household Scheme for more details on eligibility.

Starting from 1st September 2021, the NSW Government will provide a $3,000 discount for the first 25,000 new battery electric vehicles valued under $68,750 (inclusive of GST). The discount isn't applicable to used and demonstrator vehicles.

A stamp duty exemption is available for new and used electric vehicles valued up to and including $78,000 (inclusive of GST). From 1st November, qualified electric vehicles can use Transit T2 and T3 lanes until at least 31st October 2022.

Eligibility and Application Process

For vehicles bought from 1st September 2021, the EV discount is accessible to residents of New South Wales and businesses located in the state. Novated lease vehicles are not eligible. The application process started on 1st November 2021. For eligible vehicles delivered from 15th August 2022 onward, the Stamp Duty Exemption will be applied to the Final Invoice.

Starting 21st April 2023, the QLD government will provide a $3,000 or $6,000 discount on new zero emission vehicles valued at or below $68,000 (inclusive of GST, delivery fees excluded). This discount is not applicable to used and demonstrator vehicles.

In addition, electric and hybrid vehicles enjoy a lower stamp duty: $2 per $100 up to a $100,000 value, and $4 per $100 value afterward (compared to up to $6 per $100 for more polluting vehicles).

Eligibility and Application Process

For vehicles bought from 21st April 2023, the EV discount is accessible to residents of Queensland and businesses located in the state. Households with an annual gross income up to $180,000 may be eligible for a $6,000 discount. Households with income above this threshold may qualify for a $3,000 discount. Novated lease vehicles are not eligible. The details of new requirements and an updated application form will be available online from 1st July 2023.

As of October 28, 2021, the government of South Australia provides a $3,000 rebate for the first 7,000 new battery electric vehicles with a total value below $68,750 (GST included). The rebate is applicable to demonstrator vehicles that fulfill the stamp duty exemption criteria, but not for used vehicles.

Furthermore, new battery electric vehicles that cost less than $68,750 (GST included) qualify for three years of complimentary registration (exclusive of other charges). This exemption is valid for new electric vehicles initially registered between October 28, 2021, and June 30, 2025.

Eligibility & Claiming the Rebate

South Australian residents and businesses operating in the state who purchase qualifying vehicles from October 28, 2021, are eligible for the EV rebate. Rebates are limited to one per individual and two per business. The vehicles must be registered in South Australia and cannot have previously received a rebate in another jurisdiction. The rebate is applicable even for vehicles bought before October 28, 2021, if they are registered for the first time after this date. The rebate can be claimed using the subsidy application form.

Up to $2,000 rebate for the first 7,500 households that install an EV smart charger at home.

Starting May 2, 2021, the Victorian government provides a $3,000 Zero Emission Vehicle (ZEV) Subsidy for new zero emissions vehicles priced less than $68,740 (GST included). This subsidy is limited to the first 4,000 vehicles registered in Victoria. Another 16,000 incentives will be provided, but the specifics are yet to be determined.

Electric vehicles are also exempt from the "luxury vehicle" stamp duty, instead paying a fixed rate of $8.40 per $200 of the vehicle's market value. All electric vehicles receive an additional $100 discount on their annual vehicle registration.

Eligibility & Claiming the Subsidy

Victorian residents and businesses who purchase eligible vehicles from May 2, 2021, can avail of the ZEV Subsidy. Each individual is entitled to one subsidy and each business to two. The subsidy is subtracted from the total on-road price on the final tax invoice. If eligibility cannot be established, any quotes or invoices including the subsidy will be voided.

From July 1, 2021, the state of Tasmania waives the stamp duty for all new and used electric vehicles. This two-year initiative aids in decreasing the upfront cost of electric vehicles. The stamp duty exemption is set to expire June 30 2023. 

Free registration is offered for two years on EVs purchased by car rental companies and coach operators.

Northern Territory residents purchasing an EV will be eligible for A$1,500 subsidy on stamp duty for pure EVs and plug-in hybrid vehicles (PHEVs) for 5 years from July 2022. There is cheaper registration for EVs and PHEVs for 5 years from July 2022 and grants for home, workplace and public EV chargers. Information can be found here

As of May 10, 2022, the Western Australian government provides a $3,500 Zero Emission Vehicle (ZEV) Rebate for the first 10,000 new zero emissions vehicles priced at or below $70,000 (GST included). The rebate can also be applied to demonstrator vehicles registered on or after May 10, 2022, but not to used vehicles.

Eligibility & Claiming the Rebate

Western Australian residents and businesses that register eligible vehicles from May 10, 2022, can apply for the ZEV Rebate. Vehicles acquired through a novated lease agreement are also eligible. Applications for the rebate opened on May 10, 2022, and the approved applicants will start receiving payments from July 1, 2022.