Zero emission vehicles such as electric cars have a clear role to play in helping Australia transition to cleaner transport and reducing our everyday emissions. Our Federal and state governments must provide clear, decisive strategies that outline infrastructure projects, emission targets, industry standards, and incentives, to ensure a coordinated and smooth transformation.
Key points
The Federal government hasn't provided targets or incentives to encourage electric vehicle purchases in Australia
Federal, State, and Territories have committed to building a significate EV charging network.
Some of Australia’s States and Territories governments are starting to put in a lot of effort to lay the groundwork but with no consistency between them.
The Victorian government introduced road usage fees for electric vehicles which has been described by some, as the worst electric vehicle policy in the world. Other States have also indicated that they will do the same over time.
Federal Government
Currently, there are no incentives or any policies provided by our Federal government, but they are providing funds for a national charging network. This month, the Australian Renewable Energy Agency announced $24.55 million in funding to five applicants across 19 projects to expand Australia’s fast charging network for battery electric vehicles (EVs), in Round 1 of the Government’s Future Fuels Fund.
State by State snapshot overview;
Below is a simple chart showing each state's incentives currently on offer, but the details of each state’s strategies are worth a closer look in the summaries that follow.
NSW
NSW has experienced the biggest change over the last 12 months thanks to the introduction of its whole of government Electric Vehicle Strategy, backed by $500 million in funded actions.
Tax breaks:
No stamp duty for EVs under $78,000 (from September 1, 2021); all other EVs and plug-in hybrids from 1 July 2027 or when EVs make up at least 30% of new car sales
Registration discount;
None at this stage
Charging network strategy;
The government will co-fund new ultra-fast charging stations by providing about 1,000 charging bays along key travel routes across the state.
$171 million on public charging infrastructure, of which, $141 million is allocated to ultra-fast chargers
Road user charge;
From 1 July 2027 or when EVs reach 30 percent of new vehicle sales, introduce a distance-based road user charge (RUC) for eligible EVs of 2.5c/km
Government fleet EV policy:
Goal to make all government passenger cars EV by 2030 “where feasible”
ACT
The ACT has traditionally been a national leader in progressive electric vehicle policy and has continued to complement these efforts over the past 12 months. The ACT continues to work towards its government fleet procurement targets and has signaled it may revise its bus electrification targets, bringing them forward in line with NSW.
Tax breaks:
The ACT Government is the only jurisdiction in Australia to have a differential duty scheme for selected cars, utes, and light commercial vehicles to provide an incentive for the purchase of lower operating emission vehicles and a disincentive against the purchase of vehicles with higher operating emissions.
No stamp duty for all vehicles emitting under 130g CO2/km (including ICE, hybrid, and EV).
Registration discount;
Two years free registration for EVs purchased from 1up to 30 June 2024; 20% annual ongoing discount to annual registration fees for EVs purchased before 1 May 2021
Other Incentives
Older EVs eligible for 20 percent off rego fees
The Sustainable Household Scheme to provide zero-interest loans of between $2,000 to $15,000 to eligible ACT households to help with the upfront costs of investing in energy efficient home upgrades, including ZEVs.
Charging network strategy;
Investing in 50 publicly accessible charging stations by mid-2022 and another 50 new public chargers after that; details to be announced late in 2021.
Road user charge;
None at this stage
Government fleet EV use:
All new ACT government fleet passenger vehicles (cars and SUVs) EV or FCEV “were fit for purpose” no date provided.
Vic
Earlier this year, the Victorian Government released its Zero Emissions Vehicle Roadmap, supported by a $100 million package of policies and programs. As a part of this, they will be introducing a financial rebate for electric vehicles as outlined below.
Tax breaks:
All EVs will have a single rate of stamp duty which is $8.40 per $200 or part thereof No local LCT will apply. From 1/7/21 potential savings are, $750 on a $75,000 car, $1000 on a $100,000 car, $4200 for a $150,000 car and $9600 on a $200,000 car
Registration discount;
$100 annual discount for zero emission vehicles.
Other Incentives
The Victorian Government has also introduced the ZEV subsidy, which can lower the cost of a new EV under $68,740 by $3,000. However, this offer is limited to 4,000 registrations currently, with an additional 16,000 spots to be made available at a yet to be determined timeframe.
Road user charge;
It’s also worth noting that from July 1, Victorian EV drivers will also be slapped with a per kilometer tax that has been widely criticised by everyone
2.5c/km for EVs and 2.0c/km for PHEVs from 1 July 2021 to 30 June 2022; rates to be indexed annually
Charging network strategy;
$19 million to accelerate the rollout of EV charging infrastructure across regional Victoria
Government fleet EV use:
$10 million to green the Government Fleet, including replacement of 400 vehicles with ZEVs by 2023
QLD
Queensland has leveraged its early leadership in electric vehicle infrastructure by continuing to expand its Electric Vehicle Super-Highway. The state is currently consulting to update its electric vehicle strategy, having been the first state in Australia to develop one in 2017 but not much has happened to date. The Queensland government must increase the scope of its Electric Vehicle Strategy to include financial incentives for the purchase of EVs in line with other states, hence the current lack of incentives that are currently on offer.
Tax breaks:
Lowest car registration for BEVs – $263 a year
Lower stamp duty rates than ICE cars
Registration discount;
None at this stage
Other Incentives;
None at this stage
Charging network strategy;
Queensland has invested in an ‘Electric Super Highway’, currently the longest electric fast charging highway in the world (in a single state) with 31 EV plug-in sites running from the Gold Coast to Cairns and west from Brisbane to Toowoomba
Eighteen new charging sites will be added to the Super Highway in phase 3 of the Government’s strategy, spreading into regional Queensland.
Road user charge;
None at this stage
Government fleet EV Policy:
QFleet Electric Vehicle Transition Strategy plans to have at least 288 EVs in the government fleet by 2022
TAS
Tasmania’s electric vehicle policy focus has primarily been on the provision of funding public charging infrastructure, leading to the rollout of public charging sites across the state.
Tax breaks:
Two years’ free stamp duty for new and second-hand EVs
Two years’ free rego on EVs purchased by car rental companies and coach operators.
Registration discount;
None at this stage
Other Incentives;
None at this stage
Charging network strategy;
12 fast chargers plus $600,000 in grants committed to growing the network in regional areas and tourist hotspots.
Road user charge;
None at this stage
Government fleet EV policy:
Targeting a wholly EV fleet by 2030, which includes commercial vehicles and utes
WA
WA released its electric vehicle strategy in 2020, announcing the development of a state charging network, Uber, taxi, or charter vehicle drivers will be exempt from the 10 percent on-demand transport levy in Western Australia by driving an electric vehicle.
consumer education programs and a fleet procurement target.
Other than that, Western Australia doesn’t have any incentives for the vehicles themselves.
Tax breaks:
None at this stage
Registration discount;
None at this stage
Incentives;
$200 rebate for home-charging an EV or plug-in hybrid as part of its Home Plan incentive.
Charging network strategy;
235 charging stations of varying capacity ranging from <22kW to 350kW
$21million plan to create Australia’s longest EV fast charging network. The infrastructure network includes up to 90 fast charging stations and backup chargers at 45 different locations connecting Perth and regional Western Australia - stretching north to Kununurra, south to Esperance, and east to Kalgoorlie.
Road user charge;
None at this stage
Government fleet EV use:
25 percent of its governmental passenger car and SUV fleet to zero-emissions vehicles by 2026.
SA
SA released its electric vehicle action plan in late 2020, and its objective is to prepare the state for electric vehicle uptake. The plan states it will be a national leader in electric vehicle uptake and smart charging by 2025, harnessing renewable energy to lower motoring costs, air, noise, and carbon pollution, and reduce electricity costs. But as of writing this, no tangible project, incentive/discount or policy is operational. So whilst SA leads the rest of Australia in renewable energy, it is behind its other state counterparts with regards to EV.
Tax breaks:
None at this stage
Registration discount;
None at this stage
Incentives;
None – but plans are being developed. time-limited $3,000 subsidy would be provided to up to 6,000 fully electric vehicles purchased in South Australia subject to the Government’s new Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 passing Parliament.
Charging network strategy;
State-wide charging network planned by 2025
Road user charge;
Planning underway could be similar to Victoria, 2.5cents/km charge for EVs proposed for 1 July 2027 (planned).
Government fleet EV policy:
100% of vehicle sales (passenger cars, utes, and SUVs) by 2030.
NT
The Northern Territory released its first electric vehicle strategy, with a scope of
Measures. Whilst not implemented at this stage, the inclusion of financial incentives, coupled with a commitment to charging infrastructure investment, once realised will quickly bring the Northern Territory in line with some of the other leading states.
Tax breaks:
None at this stage, currently reviewing
NT EV Strategy outlines - Reduce stamp duty for first time registration of new and second hand EVs in the Northern Territory by $1 500 for ve years
Registration discount;
None at this stage, currently reviewing
NT EV Strategy outlines - Remove the registration component of registration fees for EVs in the NT for five years to encourage EV uptake.
Incentives;
None at this stage
Charging network strategy;
None at this stage, currently reviewing
NT EV Strategy outlines - Investigating road user charging for EVs and consider future options.
Road user charge;
Investigating road user charging for EVs and consider future options
Government fleet EV policy:
Increase the number of EVs in the Northern Territory Government Fleet by 20 per year over 10 years, totalling 200 vehicles by 2030.
The above is a breakdown of what is currently on offer from each state and territory and as you would expect, it's just the beginning, so hopefully, there will be ongoing enhancements regularly.
Finally, the good news is, our governments have made significant progress over the past 12 months, but there is so much more to be done, at a State, and Federal level.
There are challenges ahead, so it's critical all bodies align and head in the same direction on such a major transition like this, and ensure the country makes real inroads to accelerate EV take-up. The end goal has to be fundamental, reducing our transport greenhouse gas emissions, and provide new and existing EV consumers with appropriate infrastructure and financial support.
For any Federal and State EV information head to the appropriate government website.
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