Vyro - Breakdown of government incentives across Australia

Breakdown of government incentives across Australia

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Breakdown of government incentives across Australia

It’s official. Australia is going electric. Every state and territory now offers incentives of some shape or form to buy an electric car. But not all offers are equal.

Which one of them takes the cake? Here, we’ve broken down every Australian jurisdiction to discover the most generous ones – and those that could do a little better. We’re looking at you, federal government.

Federal government

Unfortunately, it’s worth noting that there are precisely zero federal government incentives to buy an electric car in Australia. Nothing. Nil. Nada.

The only benefit to electric vehicle owners, federally speaking, is a slight decrease on the Luxury Car Tax (LCT). As of July 2021, the ‘green’ vehicle threshold was again increased to $79,659 for fuel-efficient vehicles.

The federal government has also committed $79.9 million in funding from its Australian Renewable Energy Agency’s (ARENA) Future Fuels Fund, to expand Australia’s fast charging infrastructure.

But is that enough to drive uptake? The state and territory governments don’t think so. The federal government’s fundamental inaction and lack of financial support has driven each Australian jurisdiction to take matters into their own hands.

How the states and territories compare

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All of the available incentives, simplified

Australian Capital Territory (ACT):

  • EV sales targets: None.
  • Stamp duty tax breaks: New EVs are exempt from stamp duty (about $1,350 for a $45,000 car).
  • Savings on vehicle price: Interest-free loans are available (up to $15,000).
  • Free or discount registration: Two years free.
  • Investment in infrastructure: Yes.
  • Government fleet use: From 2020-21 all new fleet vehicle purchases are zero emissions where appropriate.
  • Building readiness: Vehicle and parking access general code to promote ZEV uptake.
  • Road user charge introduction: None.

New South Wales (NSW):

  • EV sales targets: More than 50 per cent new car sales by 2030; ‘vast majority’ new car sales by 2035.
  • Stamp duty tax breaks: New and used EVs (worth less than $78,000) are also exempt from stamp duty (roughly the same as in ACT).
  • Savings on vehicle price: The first 25,000 EVs sold (worth less than $68,750) attract a $3,000 rebate.
  • Free or discount registration: None.
  • Investment in infrastructure: Yes.
  • Government fleet use: Fully electric fleet by 2030.
  • Building readiness: Precincts and new buildings constructed and wired to be EV ready (no date specified).
  • Road user charge introduction: Phased in when EVs are 30 per cent of new vehicle sales or July 1, 2027.

Victoria (Vic):

  • EV sales targets: 50 per cent new light vehicle sales by 2030.
  • Stamp duty tax breaks: Luxury low-emission vehicles avoid luxury duty.
  • Savings on vehicle price: New electric and hydrogen vehicles (worth less than $68,740) attract a subsidy of $3,000.
  • Free or discount registration: $100 discount.
  • Investment in infrastructure: Yes.
  • Government fleet use: 400 EVs in fleet by 2023.
  • Building readiness: Under consideration.
  • Road user charge introduction: 1 July 2021.

Queensland (Qld):

  • EV sales targets: None.
  • Stamp duty tax breaks: Hybrids and EVs pay lower stamp duty.
  • Savings on vehicle price: None.
  • Free or discount registration: None.
  • Investment in infrastructure: Yes.
  • Government fleet use: 288 EVs by 2022.
  • Building readiness: None.
  • Road user charge introduction: None.

Tasmania (Tas):

  • EV sales targets: None.
  • Stamp duty tax breaks: Two-year stamp duty waiver on EVs (July 2021 to July 2023).
  • Savings on vehicle price: None.
  • Free or discount registration: Two years free for rental cars.
  • Investment in infrastructure: Yes.
  • Government fleet use: 100 per cent electric by 2030.
  • Building readiness: None.
  • Road user charge introduction: None.

South Australia (SA):

  • EV sales targets: 100 per cent passenger vehicle sales by 2035.
  • Stamp duty tax breaks: None.
  • Savings on vehicle price: The first 7,000 EVs purchased in the state attract a $3,000 subsidy.
  • Free or discount registration: New EVs are exempt from registration fees up to 2025.
  • Investment in infrastructure: Yes.
  • Government fleet use: New fleet vehicles must be plug-in electric where appropriate.
  • Building readiness: Under consideration.
  • Road user charge introduction: Planned to be introduced in 2027.

Northern Territory (NT):

  • EV sales targets: None.
  • Stamp duty tax breaks: A $1500 reduction from July 2022.
  • Savings on vehicle price: None.
  • Free or discount registration: Free registration for five years from July 2022.
  • Investment in infrastructure: Yes.
  • Government fleet use: 200 EVs in fleet by 2030.
  • Building readiness: Grants scheme to fund home and business installation, facilitating the installation of more charging stations, supporting local innovation in EV technology and skills development for servicing and charging infrastructure installation.
  • Road user charge introduction: Under review.

Are Australia's incentives enough?

The Grattan Institute says that to get Australia's transport sector emissions to net zero by 2050, 50 per cent of new car sales will need to be zero-emissions vehicles by 2030 and 100 per cent by 2035.

Unfortunately, according to government modelling, we will fall short of these targets.
The federal government's EV strategy released in early November estimated that, under current policy settings (and without national rebates), EVs will make up only 30 per cent of new light vehicle sales by 2030.

There is a lot that can be done from the federal government to encourage the uptake of electric vehicles. In the meantime though, the state and territory governments are doing their bit to help the country reach net zero by 2050.

Want to do a bit more research?

You can check out all of the information on the relevant state and territory government websites, here:

QLD Government
NSW Government
ACT Government
VIC Government
TAS Government
SA Government
WA Government
NT Government

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