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Money Saving Hacks for Buying an Electric Vehicle: What Benefits You Can Get Around Australia

ev rebates tax incentives australia 2022

Australia is not the most friendly country when it comes to electric vehicles. Our low rates of infrastructure support as well as the lack of financial incentives for those buying the vehicles make us one of the most hostile markets on the planet for EVs and those who want to buy them.

That’s not to mention we have a PM who went into the last Federal Election claiming (wrongly) that EVs would kill the weekend because they won’t “tow your boat.”

In Australia last year, EVs made up just 1.95% of new car sales. This is actually a huge jump on 2020, when EV sales made up just 0.6% of the market. However, it’s still embarrassingly low considering 3% of new cars sold in the US last year were EVs while 11.2% of those in Western Europe were EVs.

Australia has the capacity to increase its sales if only our governments would fully get behind the movement. The Australian Federal Government has yet to implement any EV incentives, although they have committed to building 403 fast-charging stations across the country. Most EVs do however fall under Luxury Car Tax, given how expensive most of them are, with that tax on “fuel-efficient” vehicles, including hybrids and EVs, being cut by 33% over $79,659.

Behyad Jafari, Chief Executive of the Electric Vehicle Council, has said that “There’s no reason why we shouldn’t be up to 20% already.”

“We have a federal government talking about hitting those targets by 2030 when really we could be there today. It’s just a matter of them doing their jobs.”

Still, despite this familiar story, governments around Australia are getting with the programme, with Queensland and New South Wales both offering new incentive packages to EVs buyers.

Here’s a round-up of what benefits are available to you and how you can save some cash using government initiatives around Australia.

New South Wales

The New South Wales Government has previously said that it wants to be “the easiest place to buy and use an EV in Australia.” The state has committed itself to halving its emissions from 2005 levels by 2030 and its $490 million investment in the sector is part of this.

NSW announced a $3000 rebate would be paid to the first 25,000 EVs under $68,750 bought after 1 September 2021. Given 3,650 new EVs were registered in NSW in 2021, this offer could be available for a number of years.

NSW has also waived stamp duty for new EVs under $78,000.

Australian Capital Territory

The ACT has the most generous financial policies when it comes to EVs of any state or territory. This explains why EVs sold in Bush Capital makes up 5.87% of the new car market.

The ACT offers an interest-free loan of up to $15,000 for eligible households to buy an EV under $77,565. This loan can also be used to buy EV charging equipment too.

No stamp duty needs to be paid on new EVs whatsoever in the ACT and drivers are given two years of free registration.

Queensland

Queensland has historically lagged behind most of the country in its EV policies. That all changed this week with the new announcement of a $3,000 rebate for new EVs under $58,000.

EVs in QLD pay lower stamp duty compared to internal combustion engine vehicles. Those under $100,000 pay 2%, compared to the 3% ICE vehicles pay, and 4% over $100,00 compared to 6% on traditional ones.

QLD has also committed to adding 18 fast chargers across inland areas to complement the existing ones around coastal areas.

Victoria

Victoria made headlines last year by becoming the first jurisdiction in the world to actually impose a tax on EVs. People are charged 2-2.5 cents per kilometre driven and have to submit their odometer readings to authorities. This is currently being challenged in the high court, however, NSW and SA are looking to impose similar taxes in 2027.

That being said, the state still offers some good incentives to EV buyers. New owners can claim a $3,000 rebate on their vehicles, although this is limited to the first 4,000 buyers, of which half have already been claimed. The government has said that more will be available in the future though.

EVs in Victoria also qualify for an annual $100 discount on registration while also avoiding Victorian Luxury Car Duty.

South Australia

South Australia is aiming for the ambitious target of 100% of new vehicle sales to be electric by 2035. They have also said that they want to be a “national leader” in EV uptake as well as charging stations.

To that end, SA offers a $3,000 rebate on EVs up to $68,750 for the first 7,000 cars purchased. Owners will also get free registration for the next two years as well as a $2,000 subsidy for the installation of an at-home charger.

That being said, the planned introduction of a road tax on EVs also make the state’s position somewhat complicated.

Tasmania

Tasmania is one of the greenest states in the country, with 90% of its electricity already coming from renewable sources. It’s a bit strange then that their transport policies don’t quite match up.

Tasmania offers no rebates on purchases of EVs, however, they have invested heavily in the charging network and are planning to have 12 charging stations across the state soon.

Those who buy a new EV before July 2023 will have to pay no stamp duty, which could amount to a saving of around $2,000 for an EV at the mid-upper range of the price scale.

The Tasmanian government is also aiming to use 100% electric vehicles by 2030 and have also waived registration for EVs purchased by rental car companies for two years.

Northern Territory

The NT doesn’t currently offer a huge range of incentives for EV owners, however that is about to change with the introduction of a $1,500 stamp duty discount on both new and used EVs which is coming into effect from July.

The state will also offers free registration of EVs from July until July of 2027.

The government has stated that they need to plan for infrastructure changes and are currently installing 400 charging stations in NT government buildings.

Western Australia

WA currently offers no incentives to new EV owners. The state has said that it is focusing on building the infrastructure to support EVs by rolling out a network for fast charging stations across the state, however.

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