How do EV incentives in Australian states and territories compare to t – Intelevi

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How do EV incentives in Australian states and territories compare to the rest of the world?

How do EV incentives in Australian states and territories compare to the rest of the world?

Australia has made made big strides in shifting electricity generation to renewables, and emissions are falling. Electricity production is responsible for only a third of our total emissions but transport accounts for a further 20 per cent.

So the country has been accelerating with local incentives to encourage motorists to join the electric revolution. These perks vary tremendously, but NSW and the ACT stand out in terms of the breadth and depth of support for those of us keen to make the transition to electric. 

Below is a summary of the incentives on offer in Australian states and territories, along with details of each state’s strategies for transitioning to electric.

ACT

  • Two years free registration for new and used ZEVs (until mid-2024).
  • 20% annual vehicle registration discount.
  • $15,000 interest-free loans.
  • Stamp duty exemption on new EVs.

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  • 100% newly leased ACT Government fleet passenger vehicles in 2020-2021 are ZEVs, where fit for purpose.
  • 50 new publicly accessible charging stations.
  • All new multi-unit and mixed-use developments to install vehicle charging infrastructure
  • Priority parking spaces.
  • Permitted to drive in transit lanes until 2023.

New South Wales

  • $3000 rebate for 25,000 EVs under $68,750 (from 01/09/2021)
  • Stamp duty exemption for EVs under $78,000 (from 01/09/2021, permanent)

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  • 2.5c/km road user tax to be imposed 01/07/2027.
  • Stamp duty abolished for all EVs and PHEVs from 01/07/2027.
  • 100% of the State fleet to be electric by 2030, with around 600 PHEVs and 300 BEVs added annually.
  • $171 million on widespread charging infrastructure – including fast chargers at 100 km intervals on all major highways:
  • Aiming for 50% of new cars sold in NSW by 2030.
  • Medium to large-sized fleets incentivised to buy EVs through a reverse auction process.
  • EV drivers can use T2 and T3 transit lanes for a limited time.
  • Grants for regional businesses to install charge points for guests to attract tourism trade.

Northern Territory

  • EVs pay the lowest registration fees in the small car category, like Queensland ($655.55 year).

Queensland

  • Reduced stamp duty for EVs – a $60,000 EV or hybrid costs $1200 in duty, a four-cylinder costs $1800, and a 6c ylinder costs $2100.
  • Reduced registration fees – EVs save between $71.45 and $606.85 compared to ICE vehicles, depending upon the number of cylinders.

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  • Increase EVs and PHEVs in the 10,000 strong Government fleet to 288 in 2022, and doubling it year on year.
  • Encouraging agencies to replace all existing ICE vehicles with PHEVs, EVs and Hydrogen fuel cell vehicles.
  • Extension of the Queensland Electric Super Highway west to cover 3800km, with 49 fast charging locations across QLD.
  • (June 2021: Queensland’s new Zero Emission Vehicle strategy in development.)

South Australia

No incentives yet.

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  • Entire SA Government fleet to be electric by 2030 using existing fleet budget.
  • 110 rapid highway charging stations installed across South Australia, 350 fast destination chargers in metropolitan centres by 2030-35.
  • Road user tax proposed and delayed.

Tasmania

  • Stamp duty exemption for two years on new and used EVs.

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  • Target for 100% of Government fleet to be EVs by 2030.
  • Free registration for EVs purchased by car rental companies and coach operators for two years.
  • State-wide network of 12 fast chargers.
  • $600,000 towards fast- and destination-charging stations in regional and tourism destinations.

Western Australia

No incentives yet.

Info

  • $21 million Electric Vehicle Fund to build the world’s longest network of EV charging stations.
  • Target of 25% EVs in the State Government fleet by 2026.
  • New lower rate EV tariff to encourage EV owners to charge between 11pm and 4am.
  • EVs are exempt from the 10% on-demand (taxis, ride sourcing, charter vehicles) transport levy which can add up to $10 to each journey.

Victoria

  • $3000 rebate for 20,000 ZEVs priced under $68,740.
  • $100 registration discount for Zero or low emission vehicles.
  • Low emissions (<120g/km) vehicles do not attract the luxury car transfer tax rates

Info

  • Road user tax of 2.5c/km for BEVs and 2c/km for PHEVs from 01/07/2021, rising annually with inflation.
  • Target of 50 per cent of light vehicle sales by 2030.
  • $19 million on charging infrastructure in regional areas.
  • $10 million to replace 400 vehicles in the Government fleet with ZEVs by 2023.

Australia isn't the only country that offers EV incentives. Many other countries across the globe are encouraging EV purchases by offering their own incentives with perks that range from tax breaks to rebates for consumers hungry to burn electrons, not petrol . Let’s take a look at some of the best benefits being provided for EV purchasers across the globe. 

Norway: In pole position

Norway is one of the most sustainable and efficient countries in the world, as evidenced by its use of renewable energy sources to feed its national power grid. It also has the highest market penetration per capita in the world, and the world's largest plug-in segment market share of new car sales, 74.7% in 2020.


These leading EV sales figures are impressive because EVs are exempt from the local import tax, as well as the 25% VAT motor vehicle tax, both of which are typically added to a vehicle’s value after customs taxes. In addition to these savings, Norway EV drivers can also enjoy use of local bus lanes in busy city areas and receive a discount on the ferry crossing tolls and other parking fees.


Thanks to the tax advantage, Norway is one of the few markets in the world where the price of an electric car is roughly the same as that of a similarly sized vehicle with a combustion engine.

New Zealand: An EV frontrunner

New Zealand offers rebates of $NZ8625 for new imported EVs and plug-in hybrids (PHEVs) and NZ$3450 for second-hand ones. In addition to these rebates, the scheme in New Zealand  will also introduce additional fees on the price of vehicles that produce high levels of carbon dioxide emissions, earning it the nickname “the feebate”. The fees will be introduced on 1 January 2022, along with an expansion of the rebates to include low-polluting, fossil-fuelled cars.

USA: Tax bonuses

American EV consumers can benefit from a tax credit of up to $7,500, so long as the manufacturer has yet to sell 200,000 vehicles. Two EV companies have already reached this limit, but the subsidy is still in place for all other EV brands with sales under the 200,000 mark.


President Biden has just announced $7.5 billion for an EV charging infrastructure network, but it’s not yet clear what will be made available for vehicle purchasing incentives – $100 billion was originally earmarked for EV subsidies in Biden’s ‘American Jobs Plan’.

UK: Driving in reverse?

The UK government offers a $3,480 discount on new EVs under $48,670, but this is less than the previous grant offered, which was $4,170 on EVs worth $69,500.

Germany: Manufacturers helping

The German government offers a 4,000 Euro purchase incentive (half of which comes from the EV manufacturer).

France: Generous purchase incentive

EV drivers can see up to 8,500 Euro purchase incentive from the government.

Italy: Trading 

Italy offers a 4,000 Euro purchase incentive, as well as 2,000 incentive for the trade of a Euro 1 to Euro 4 vehicle.

China: No limitations for EVs

The Chinese EV market is one of the fastest growing regional EV sectors, and China has also bolstered its high EV purchase numbers with several key incentives.

Chinese EV drivers don’t have to deal with the registration restrictions and driving bans that affect traditional gasoline engine cars in the large cities such as Beijing and ChongQing. To cut down on pollution, combustion engine vehicle drivers must observe registration rules for their vehicles, as well as prohibited driving days. EV drivers, on the other hand, do not have to deal with these limitations.

In summary 

Compared to the incentives being offered in other areas, Australia is currently in the slow lane.

So what can we do? 

There are no Australian federal incentives, or policies to encourage the uptake of electric vehicles. There seems to be a little confusion in terms of the different offers so introducing nationwide incentives would not only add significance to the incentives but also make them more widely understandable for Australians.

Other governments are putting their hands deeper in their pockets so an obvious move could be to increase the rebate amount and cut taxes. Then there are softer perks like city parking arrangements and tolls that can be adjusted in favour of EV owners.

What other ideas do you have?

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