Electric vehicle incentives in Australia

Electric vehicles (EVs) are beginning to catch on in Australia, where EV uptake lags behind other developed countries.

According to a recent report by the Electric Vehicle Council, EVs account for more than eight percent of new car sales in Australia this year. Compared to 2022, that's an increase of more than 120 percent.

Australian state governments offer various incentives to encourage EV uptake among consumers and businesses.

More and more companies are beginning to look at electrifying their vehicle fleets to reduce their carbon footprints. Uber Australia announced in October that it will add 10,000 EVs to its national fleet in the near future.

But you don't need to be a multinational corporation to benefit from a transition to EVs.

Government incentives, combined with modern cloud based fleet management software, make EV transitions an attractive solution for businesses of all sizes.

Let's have a gander at the different types of EV incentives on offer in Australia today.

Are you considering an EV for your next car purchase? If so, you'll definitely want to understand the benefits that are available to you. How much you can save depends largely on where you live within Australia.

Queensland

In Queensland, individuals who purchase an eligible ZEV receive a rebate of either $3,000 or $6,000. To qualify for the larger rebate, you must have a total household income of $180,000 or less.

Note: businesses are only eligible for the $3,000 rebate. For companies with vehicle fleets, these incentives can translate to significant savings, freeing up funds for fleet tracking software and other fleet management systems.

In addition to the rebate, eligible EVs and hybrids get a 33 percent discount on stamp duty in Queensland.

New South Wales

NSW offers two EV incentives to consumers: a rebate and a stamp duty exemption.

Since 2021, the NSW Government has supported a $3,000 rebate on the first 25,000 eligible EVs. Qualifying categories include passenger vehicles, light commercial vehicles, sport utility vehicles, and light trucks. Vehicle types that do not qualify for the rebate include caravans, trailers, boats, and airplanes.

In addition to the rebate, EV purchases (new and used) under $78,000 are not subject to stamp duty.

That being said, the NSW Government announced in September that both the rebate and stamp duty exemption are being phased out. The government will instead invest $263 million in charging infrastructure throughout the state.

Victoria

Similar to NSW, Victoria once offered a $3,000 rebate on new EV purchases under $68,740. The program was supposed to last through May 2024 but was cancelled in June 2023.

The Victorian Government still offers an incentive in the form of a stamp duty rate cut for zero-emissions vehicles (ZEVs). All ZEVs, regardless of purchase price, are exempt from luxury vehicle stamp duty rates.

Additionally, ZEVs purchased in Victoria qualify for a yearly $100 discount on vehicle registration.

Australian Capital Territory

New ZEV purchases are not subject to stamp duty in the Australian Capital Territory. Eligible vehicles include cars, motorcycles, utility vehicles, and light commercial vehicles.

All new and used ZEVs in the Australian Capital Territory qualify for free registration for two years. This incentive ends 30 June 2024.

Western Australia

Since July 2022, the Government of Western Australia has offered a rebate of $3,500 for the first 10,000 ZEV purchases. The vehicle's value cannot have a value exceeding $70,000.

South Australia

Beginning in October 2021, the first 7,000 eligible EVs purchased in South Australia receive a $3,000 rebate and free registration for three years. Vehicles valued over $68,750 do not qualify.

Northern Territory

Through July 2027, those who purchase a new or used EV or hybrid valued at $50,000 or less get $1,500 off stamp duty. Certain EVs are also eligible for free registration.

The Northern Territory offers subsidies of up to $2,500 for the purchase and installation of electric vehicle chargers. This incentive applies to both individuals and businesses and is good through June 2024.

Tasmania

Between July 2021 and June 2023, the Tasmanian Government waived stamp duties and registration fees for all new and used EV purchases. As of now, however, there are no active EV incentives in Tasmania.

Federal Incentives

The Federal Government of Australia provides EV incentives as well.

There are no customs duties on battery electric vehicles, plug-ins, and fuel-cell vehicles, with the exception of vehicles coming from Russia and Belarus.

Moreover, the luxury car tax threshold is higher for EVs ($89,332) compared to petrol and diesel vehicles ($76,950). And low emissions vehicles are not subject to Fringe Benefits tax, provided their value does not exceed $89,332.