Electric vehicles (EVs) are becoming increasingly popular in Australia and around the world, with global electric vehicle sales more than doubling in 2021. As more Australians move to make their home more sustainable, the popularity of electric vehicles will continue to rise.
While EVs generally cost more to buy than petrol and diesel cars, switching to an electric vehicle can save you money on running costs and reduce your carbon emissions - particularly if you are charging it with solar energy from your roof.
To help speed up the transition to EVs, the Australian Government and state and territory governments have introduced incentives to help make them more affordable. Here’s a guide to what’s on offer around the country.
Federal, state and territory government incentives
- 5% Import duty exemption
- FBT exemption purchase by companies or via salary sacrifice
Eligible EV's include: Up to fuel-efficient luxury car tax limit of $84,916.
Australian Capital Territory
The ACT Government’s Zero Emission Vehicles Strategy includes a plan to ban the sale of new fossil fuel-powered light cars from 2035, with an aim for 80-90% of new car sales to zero-emission vehicles by 2030. EV incentives in the ACT include:
- Up to $599 annual registration discount
- 2.9% stamp duty discount
- 0% interest loans of up to $15,000 are available through Brighte to help fund the purchase of an EV.
New South Wales
The NSW Government’s Electric Vehicle Strategy aims to drive sales of EVs to more than 52% of new car sales by 2030-31. Incentives for EVs in NSW include:
- $3000 rebate for up to 25,000 eligible EVs sold under $68,750.
- 3% stamp duty exemption for EVs under $78,000.
The Victorian Government’s Zero Emissions Vehicle Roadmap outlines a plan for 50% of all light vehicle sales in Victoria to be zero-emissions vehicles by 2030. Incentives for EVs in Victoria include:
- $3000 rebate up to 20,000 EVs under $68,740.
The Queensland Government’s Zero Emission Vehicles Strategy includes a target for 50% of new passenger vehicle sales to be zero emission by 2030, and 200,000 EVs by 2027. Incentives for EVs in Queensland include:
- $3,000 rebate for eligible EVs valued up to $58,000, available for 15,000 EVs
- 1% stamp duty discount.
The Northern Territory Government has introduced stamp duty concessions for EVs until 30 June 2027, including:
- 3% stamp duty discount for EVs up to $50,000
- 4% stamp duty discount
- $3,000 subsidy for 7000 new EVs valued under $68,750.
- $3,500 rebate for up to 10,000 EVs under $70,000.
Prices for electric vehicles are set to drop:
The price to purchase an electric vehicle was quite high when they first hit the market, as with most innovative products this high price had to recoup costs of initial research and development and demand for Electric Vehicles (BEV) were initially lower than they are now. Due to demand increasing and the new technology being a part of every major car manufacturer lineup, prices are set to drop quickly, much like the drop in solar panels in recent years.
BloombergNEF predicts that by 2025, electric vehicles will be cheaper than petrol and diesel cars. The second-hand market also allows more Australians to take advantage of electric vehicles.
Information updated: 7 September 2022, source: The Australian