Comprehensive Guide to EV Incentives in Australia (2024)

Let’s face it—buying an electric vehicle (EV) can be a significant financial outlay. Even with all the eco-friendly and fuel-saving benefits, the upfront cost may be intimidating. But here’s the good news: there are plenty of EV incentives available to help lower the price tag and make switching to an electric vehicle more affordable.

From state-funded rebates to tax exemptions and even free charging in some places, Australia is making it easier than ever to go electric. This comprehensive guide will help you understand the EV incentives available in Australia and how you can take advantage of them to make the transition to an EV smoother and lighter on your wallet.

Breaking Down EV Incentives in Australia

Governments across Australia are keen to push the adoption of electric vehicles, and as part of this push, they’ve rolled out a range of EV incentives. These incentives are designed to help cover the cost of purchasing and running an EV, making it a more accessible option for everyone. Here are some of the most common types of EV incentives available:

• Rebates: These are cash incentives provided by state governments to reduce the initial purchase price of an EV.

• Tax exemptions: You could benefit from reductions or exemptions on stamp duty and other taxes when registering your EV.

• Free public charging: Some states offer free charging at certain public charging stations, saving you money on fuel.

• Home charging assistance: Financial support is available in some regions to help with the cost of installing home EV charging stations.

Federal EV Incentives Available Across Australia

In addition to the state-based rebates and tax exemptions, Australia has nationwide incentives for electric vehicle (EV) owners. These federal incentives apply no matter where you live in the country and can provide significant financial benefits for anyone looking to make the switch to electric driving. Here’s what you need to know:

Fringe Benefits Tax (FBT) Exemption for EVs

Since 1 July 2022, eligible low- or zero-emission vehicles have been exempt from Fringe Benefits Tax (FBT). This exemption can be a game-changer for those purchasing an electric vehicle through a novated lease, significantly reducing the overall cost of both the car and its running expenses.

For EVs and plug-in hybrid electric vehicles (PHEVs) valued up to the luxury car tax threshold (currently $91,387 for the 2024/25 financial year), this exemption can save thousands of dollars annually. In many cases, opting for a novated lease on an EV can be cheaper than purchasing the vehicle outright with cash, making this an attractive option for many Australians.

FBT Exemption Deadline for PHEVs

It’s important to note that the FBT exemption for PHEVs is set to expire on 1 April 2025. This means that while PHEVs currently enjoy the same benefits as fully electric vehicles, those looking to purchase a PHEV should act soon to take full advantage of the savings before the exemption ends.

Queensland EV Incentives: Zero Emission Vehicle (ZEV) Rebate Scheme

The Queensland government offers rebates of $3,000 or $6,000 to eligible residents and businesses purchasing a new Zero Emission Vehicle (ZEV).

• $6,000 Rebate: Available to individuals who purchase a new ZEV valued at up to $68,000 (inclusive of GST) on or after 21 April 2023. To qualify for this higher rebate, households must have an annual taxable income of $180,000 or less.

• $3,000 Rebate: This rebate is available to both individuals and businesses who purchase a new ZEV with a dutiable value of up to $68,000 (including GST) from 21 April 2023. However, businesses can only apply for the $3,000 rebate.

Additionally, if you purchased a ZEV after 16 March 2022 with a previous dutiable threshold of $58,000 and already received a $3,000 rebate, households with a taxable income under $180,000 can apply for an additional $3,000 rebate

New South Wales EV Incentives

NSW EV Rebate (Program Ended)

The NSW EV rebate closed on 31 December 2023. However, if you placed a deposit or purchased an eligible electric vehicle before the deadline, you can still claim the rebate, even if the car is delivered after that date. Applications can be submitted until 30 June 2024. 

The rebate provides $3,000 for battery electric and hydrogen fuel cell vehicles with a dutiable value below $68,750. Plug-in hybrid electric vehicles (PHEVs) do not qualify for this rebate.

NSW Stamp Duty Exemption (Program Ended)

Similarly, the NSW stamp duty exemption for eligible EVs ended on 31 December 2023. However, you can still apply for a stamp duty refund if you bought or paid a deposit for your vehicle before this date, with the application period closing on 30 June 2024. 

Eligible vehicles include new or used battery electric and hydrogen fuel cell vehicles under 4.5 tonnes, with a dutiable value of up to $78,000.

As NSW wraps up its EV rebates and stamp duty exemptions, the focus for 2024 has shifted to strengthening the charging infrastructure across the state. With the rise in electric vehicle ownership, ensuring accessible and reliable charging options has become crucial. This shift reflects a growing emphasis on long-term sustainability and addressing key concerns like range anxiety.

The government is now prioritising the installation of fast chargers on major commuter routes and providing more kerbside charging for apartment dwellers. 

The expansion of this infrastructure will also help those in regional areas and other locations where home charging might not be feasible. By improving the availability of public charging stations, NSW aims to make the transition to electric vehicles smoother for all its residents.

This strategic investment will play a key role in making EVs more practical and accessible, helping more people switch to cleaner, electric-powered vehicles.

How to Claim Your EV Incentives

Now that you know what EV incentives are available in your state, the next step is understanding how to claim them. The process can vary depending on where you live, but here’s a general guide:

1. Purchase an eligible EV: Make sure the vehicle you’re buying qualifies for your state’s EV incentives. Different states may have specific criteria, such as price caps or vehicle types.

2. Apply for your rebate: After purchasing your vehicle, you’ll need to submit an application to your state government. This usually involves providing proof of purchase and registration details.

3. Receive your rebate: Once your application has been processed and approved, your rebate will be paid directly to you.

Maximising Your EV Incentives

To ensure you’re getting the most out of your EV incentives, keep the following tips in mind:

• Check eligibility early: Make sure the EV you’re interested in is eligible for rebates and incentives in your state.

• Act quickly: Some EV incentives have limited funding and may be available on a first-come, first-served basis, so don’t delay.

• Look into home charging rebates: Installing a home charging station is a great way to maximise the convenience of owning an EV. Many states offer rebates to help with the cost.

Why Go Electric? The Long-Term Benefits of EVs

While the financial savings from EV incentives are a big draw, there are plenty of other reasons to consider switching to an electric vehicle. Here are just a few:

• Reduced emissions: EVs produce no tailpipe emissions, making them a cleaner and more environmentally friendly choice.

• Lower running costs: EVs are cheaper to run than petrol-powered cars, with lower fuel and maintenance costs.

• Smoother, quieter driving: Electric vehicles offer a smoother and quieter driving experience, making your daily commute more comfortable.

The Future of EV Incentives in Australia

As Australia ramps up its efforts to reduce emissions and meet its climate targets, it’s likely that even more EV incentives will be introduced in the coming years. Some possibilities include:

• Increased rebate amounts: As more people switch to EVs, we may see larger rebates to encourage further adoption.

• Support for used EVs: Future EV incentives could include rebates or tax breaks for used electric vehicles, making them even more affordable.

• Incentives for businesses: Businesses installing EV charging stations or transitioning to electric fleets may soon benefit from financial incentives.

Conclusion: There’s Never Been a Better Time to Go Electric

With so many EV incentives available across Australia, there’s never been a better time to make the switch to an electric vehicle. From generous rebates like the QLD EV rebate to ongoing savings from lower running costs, driving an EV can be more affordable than you might think.

Ready to take the plunge and enjoy the benefits of electric driving? Novated Finance Australia can guide you through the process of financing your EV and help you maximise the available EV incentives.

Frequently Asked Question

• Are there federal EV incentives in Australia?

  While there are no federal rebates specifically for purchasing electric vehicles, the government supports other initiatives like home charging station installations and renewable energy schemes, which can help lower overall costs associated with owning an EV.

• How long after purchasing can I apply for an EV rebate?

  The application period varies by state, but you typically need to apply within a few months of your purchase. Be sure to check your specific state's guidelines for detailed information on deadlines and required documentation.

• What if my state doesn’t offer EV rebates?

  Even if your state doesn’t provide rebates, you can still enjoy lower running costs, reduced emissions, and federal incentives for home charging installations. EVs generally offer significant savings over traditional fuel-powered cars in the long run.

• Can I charge my EV during a power outage?

  Certain electric vehicles feature "vehicle-to-home" technology, allowing them to power household devices during outages. However, this capability isn’t available in all EV models, so it’s best to check your specific vehicle’s features.

• How can I stay updated on the latest EV incentives?

  To keep up with the latest EV incentives, visit your state’s official government website and subscribe to updates from EV industry groups. Newsletters and sustainability organisations often provide timely information about new incentives and changes.