How to afford an electric vehicle in Australia
What are the Australian incentives for electric vehicles?
Federal government incentives.
At the National level, the Government has removed the Fringe Benefits Tax (FBT) on eligible electric cars provided by employers to current employees through a novated lease.
The exemption will apply to vehicles with a RRP under $89,332 in 2022-23. Eligible electric cars that are held and used on, or after, 1 July 2022 may also qualify retrospectively for the FBT exemption. The FBT exemption can also apply to second-hand electric cars.
Additionally, the government declared it will eliminate the 5% customs charge on electric, plug-in hybrid, and hydrogen fuel-cell cars and trucks whose customs value is below the gas-saving luxury car tax level. With the exception of vehicles imported from Russia and Belarus, this rule will apply to vehicles admitted for domestic use beginning on July 1, 2022.
State and territories incentives.
Each state has identified different ways to incentivise the adoption of EVs. Here is a summary, broken down by state, from the Australian Electric Vehicle Council:
AUSTRALIAN CAPITAL TERRITORY
Financial incentives:
- Two years of free registration for new or used ZEVs.
- Residents of the ACT can apply for a $15,000 interest-free loan to assist with the purchase of a ZEV.
- ZEVs that are purchased for the first time are eligible for a full stamp duty exemption.
Behaviour incentives:
- Preferential lane access exists for ZEV drivers in transit / high-occupancy vehicle lanes.
NEW SOUTH WALES
Financial incentives:
- $3,000 rebates for the first 25,000 eligible EVs sold. The rebate cannot be used for vehicles procured under a novated leasing arrangement.*
- Stamp duty will be phased out on eligible EVs.*
*The stamp duty exemption and the rebate for all eligible EV purchases will end on 1 January 2024. Individuals and businesses that have purchased or placed a deposit on an eligible EV prior to 1 January 2024, and are awaiting delivery of the vehicle, will still be eligible to receive the stamp duty exemption and rebate, regardless of whether the vehicle has been delivered by that date.
Business incentives:
- $105 million via a competitive reverse tender auction process to assist private businesses, not-for-profits and local councils to transition their fleets.
- The NSW EV Fleets Incentive includes a fixed amount of $400 per vehicle for BEV smart base charging at business premises or employees’ homes. This funding is limited to subsidising the purchase price for smart chargers only.
- Stamp duty exemption on eligible EVs applies to both public and private fleets.
Behaviour incentives:
- BEVs and FCEVs have access to T2 and T3 transit lanes until at least 31 October 2022.
NORTHERN TERRITORY
Financial incentives:
- Registration fees are waived for EVs for five years.
- Reduced stamp duty for EVs by $1,500 for five years.
Business incentive:
- Registration and stamp duty incentives are available to fleets.
Behaviour incentives:
- Nominated EV parking (for charging) is available in public car parks.
QUEENSLAND
Financial incentives:
- $3,000 incentive for 15,000 cars under $58,000.
- EVs are registered in the lowest fee segment (min. saving approx. $70).
SOUTH AUSTRALIA
Financial incentives:
- $3,000 subsidy for 7,000 new BEV sales under $68,750.
- 3-Year Registration Fee exemption for new BEVs until 1 July 2025.
TASMANIA
Financial incentives:
- Stamp duty waiver for two years for the purchase of new or used battery electric or fuel cell vehicles.
- Two-year waiver on registration fees for EVs bought by hire car companies and tour companies.
VICTORIA
Financial incentives:
- $3,000 subsidy paid at point of sale for first 4,000 ZEVs sold under the current $68,740 threshold.
- 20,000 subsidies in total with more details to be announced in future.
- 1x subsidy available for an individual and 2x subsidies for a business.
- Zero and Low Emission Vehicles receive a $100 concession on annual registration fees.
Business incentives:
- EV Charging for Council Fleets and EV Charging for Business Fleets Programs.
- The two fleet programs will provide up to $1.5 million each in grant funding for EV fleet infrastructure proposed by any of Victoria’s 79 local governments and businesses that are commercial-for-profit, not-for-profit, or community-based.
- Fleets are eligible to apply for the ZEV subsidy twice.
- The Commercial Sector Innovation fund (total $5 million) provides grants to applicants to pilot and/or trial zero-emission technology and accelerate business readiness for broader uptake. Applications can include purchase incentives, trials, charging at fleet depots and other proposals up to $2 million.
What electric vehicles qualify for subsidies?
Sometimes it’s hard to keep up with the technicalities and changes in legislation. That’s why we’ve put together a handy list of the Top 10 EVs and PHVs you should check out.
Are there alternatives to buying electric vehicles?
The short answer is yes! A cost-effective option to make the move to electric is novated leasing. The incentives to be introduced at the federal level will only apply to vehicles provided through novated leasing.
All the fuel and maintenance savings we’ve talked about in the first section of the article get amplified with a novated lease.
You can also bundle your finance and running costs into your before-tax pay to save on the car purchase price, income tax and GST.
Have you discussed with your HR or People & Culture department the opportunity to support their staff with Novated Leasing programs? Flare can discuss the benefits of novated leases with your employer for you. Just give us a call, and we’ll do the rest.
