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Affordable Electric Mobility: A Quick Guide to Australian EV Incentives

Electric Vehicles (EVs) are at the forefront of the automotive industry’s green revolution, offering a sustainable and eco-friendly alternative to traditional fossil-fuelled cars.

However, the perception of high upfront costs has deterred many Australians from making the switch to EV cars.

So, to address this concern, both federal and state governments across Australia have introduced a variety of incentives to make EVs more affordable.

Let’s explore the many EV incentives available throughout Australia and provide insights into how you can maximise savings when buying an Electric Vehicle.

What are the incentives for EVs in Australia?

Please note: these are current numbers as of date of publication: Nov 2023

Federal EV Incentives in Australia

1. FBT Exemption 

Effective from July 1, 2022, eligible low or zero-emission vehicles are exempt from fringe benefits tax (FBT) – a significant reduction that can result in thousands of dollars in annual savings. 

2. 0% Import Tariff 

The Australian Federal Government has eliminated the 5% import tariff on EVs, which reduces the upfront costs of purchasing an EV. Without the import tariff, EV owners can save up to $2500 in purchase prices. 

3. Higher LCT Threshold 

The luxury car tax (LCT) threshold for EVs has been set significantly higher than for non-EVs. For the 2023/24 financial year, the LCT threshold for EVs was $89,332 ($76,950 for non-EVs). This allows EV owners to purchase more expensive cars before qualifying for the LCT. 

These Australia-wide incentives are also supported by various state-specific incentives that can help to further reduce the cost of EV ownership across Australia. 

State incentives for Australian EV owners

To maximise your savings, it’s best to combine both federal and state incentives, provided you are eligible for both. Here are some of the state-based incentives that may be available to you.

What incentives are available for EV owners in NSW?

  • NSW EV RebateThe state government offers a rebate of $3,000 for the first 25,000 new battery electric and hydrogen fuel cell vehicles priced below $68,750.
  • NSW Stamp Duty ExemptionEligible new or used battery electric and hydrogen fuel cell light vehicles priced up to $78,000 are exempt from stamp duty, potentially saving you up to $3,000.For more information, check: NSW Electric Vehicle Rebate.

What incentives are available for EV owners in Queensland?

  • Queensland Zero Emission Vehicle Rebate SchemeThe state government offers a rebate of $3,000 for the first 25,000 new battery electric and hydrogen fuel cell vehicles with a dutiable value below $68,750.
  • Discounted Registration and Stamp DutyQueensland offers lower registration and stamp duty rates for hybrid and electric vehicles (compared to Internal Combustion Engine vehicles), potentially resulting in significant ongoing savings.

    For more information, check the: Queensland Zero Emission Vehicle Rebate Scheme.

What incentives are available for EV owners in Victoria?

  • $100 Registration Fee DiscountLight zero and low-emission vehicles (ZLEVs) are eligible for a registration discount of up to $100 per year.
  • Exemption From ‘Luxury Vehicle’ RateEVs in Victoria have a flat stamp duty rate of $8.40 for every $200 in market value.For updates, check: Victoria Zero Emissions Vehicle Subsidy.

    These incentives are available for EV Owners on the East Coast.

    You can utilise these alongside the federal incentives mentioned above to maximise cost savings when buying a new EV.

What state EV incentives are available for the rest of Australia?

Now’s a great time to consider buying an EV

The available incentives at both federal and state levels make owning an EV in Australia more affordable and accessible than ever before.

These incentives not only promote sustainable transportation but also help individuals minimise their environmental footprint and personal spending.

When considering the purchase of an EV, be sure to explore the specific incentives available in your region and leverage the opportunities to maximise your savings on the road to a greener future.

Find the right EV at the right price with Private Fleet

Private Fleet empowers you to gain all the benefits of a fleet purchase but as a private buyer – and get advice on the latest EV incentives!

Backed by decades of vehicle industry experience, fleet buying power and a network of car dealers across Australia, we are here to ensure that buying your next electric vehicle will be as straightforward as possible for you.

Shopping for a car is an enjoyable process – let us make it hassle-free, too.

Reach out to us today for a seamless and simple car-buying experience.

NOTE: All of the above information is true as of writing at Nov 2023. To ensure accurate information about federal and state-specific incentives for EV owners, check the official websites of each state’s Transport Department.

One comment

  1. Top 5 Considerations When Looking For A New Car in Australia says:

    […] These vehicles may offer government-backed incentives too. Read our Quick Guide to Australian EV Incentives here. […]

    November 7th, 2023 at 1:27 pm