Which states still offer electric vehicle incentives?
If you’re thinking of purchasing an electric vehicle (EV), then it’s worth looking at the benefits your state government has in place. While these have eased in some states, others still have strong motivations to get you into your new EV.
So what can you get back when purchasing an EV? Take a look at the benefits in each state and territory across Australia.
What is a low-emission vehicle?
The ATO describes a low-emission vehicle if it is a battery, hydrogen fuel cell, or plug-in hybrid vehicle. Hybrid vehicles do not meet the criteria as they are fuelled by petrol.
What are the benefits of low-emission cars?
The Green Vehicle Guide provides useful tools and outlines the benefits to consider for electric vehicles.
EVs save on running and servicing costs and are becoming more affordable as more EVs enter the market.
EVs also reduce traffic noise and harmful emissions as well as improves air quality.
The fuel calculator can help you calculate the difference between the cost of fuel versus petrol.
Find out how each government is helping you get on the road with an EV.
Federal
The federal government has a Fringe Benefits Tax (FBT) exemption for employers on eligible electric vehicles and associated expenses. To qualify, the vehicle must be a zero or low emissions car, acquired and used for the first time on or after 1 July 2022. Additionally, the car must be used by a current employee or their associates, such as family members, and must not have incurred Luxury Car Tax on importation or sale. To learn more about this benefit, visit the ATO website.
Note: From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under FBT law.
Queensland
The Zero Emission Vehicle (ZEV) Rebate Scheme closed to new applications on 2 September 2024, but the Queensland Government remains committed to supporting electric vehicle (EV) drivers.
The Queensland Government still offers discounted vehicle registration duty and fees.
Northern Territory
Registration and stamp duty concessions are available for new or existing plug-in electric vehicles (PEVs). Registration is free, even for previously registered, interstate or imported PEVs. Stamp duty concessions of up to $1500 are available for vehicles valued up to $50,000. Learn more about the conditions by visiting the Northern Territory Government website.
Australian Capital Territory
The ACT is moving vehicle registration fees from a weight-based system to an emissions-based system for most light vehicles. This change means that lower emission vehicles will benefit from reduced registration fees. Eligible vehicles include zero-emission vehicles (ZEVs), plug-in hybrid vehicles (PHEVs), hybrid electric vehicles (HEVs), and low-emission petrol and diesel vehicles. Learn more about these exemptions by visiting the ACT government website.
Victoria
Victoria has ditched its EV road user tax, following a successful High Court challenge that required the state government to refund charges, with interest, to electric car owners.
From 1 July 2021, conventional hybrid vehicles will no longer receive the annual $100 registration concession. Registration renewal fees will revert to the standard light vehicle registration charge.
However, vehicles that emit zero or low emissions through electric, hydrogen, or plug-in electric-hybrid propulsion systems (or other zero-emissions systems) will continue to receive the discount. These vehicles are classified as Zero and Low Emission Vehicles (ZLEVs) and are defined as low-emissions vehicles that require electrical plug-in to recharge. For more recent updates, visit the Vic Roads website.
New South Wales
Electric vehicles and some low-emission hybrids in NSW get a motor vehicle tax concession, applied automatically at registration. These include petrol-electric hybrids, diesel-electric hybrids, plug-in hybrids, and electric vehicles. These vehicles have CO2 emissions of no more than 150 g/km. Vehicles with a 4½ or 5-star rating under the previous Green Vehicle Guide also qualify.
For more details, visit the NSW Government’s vehicle registration page and the Drive Electric NSW EV Fleets incentive page.
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