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class="easy-breadcrumb_segment easy-breadcrumb_segment-3" itemprop="name">Analysis</span> </span> <meta itemprop="position" content="3" /> </span> <span class="easy-breadcrumb_segment-separator"> 禄 </span> <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <span itemscope itemprop="item" itemtype="http://schema.org/Thing" itemid="#4"> <span class="easy-breadcrumb_segment easy-breadcrumb_segment-title" itemprop="name">EV incentives in Australia: a boost for EV adoption </span> </span> <meta itemprop="position" content="4" /> </span> </div> </div> </div> </div> </div> </header> </div> <div id="page"> <div id="main"> <div id="left-content"> <div id="content" class="column" role="main"> <a id="main-content"></a> <article class="node-780307 node node-analysis node-promoted view-mode-full view-mode-full clearfix" about="/en/taxation-and-legislation/asia-pacific/analysis/ev-incentives-australia-boost-ev-adoption" typeof="sioc:Item foaf:Document" data-uid="11785" data-contentGroup1="auteur-Yves-Helven"> <header> <span property="dc:title" content="EV incentives in Australia: a boost for EV adoption " class="rdf-meta element-hidden"></span> </header> <div class="required-fields group-image field-group-html-element"><div class="field-ct field-ct-transliterated field-ct-analysis">Analysis</div><div class="field field-name-field-image field-type-image field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><div style="background-image: url("https://www.globalfleet.com/sites/default/files/styles/headlines_width_850/public/field/image/shutterstock_1903471954.jpg?itok=iC-LdZ1W");" class="single-image-background"></div></div> </div><div class="addthis-wrapper"> <div class="addthis_inline_share_toolbox" data-url="" data-title="EV incentives in Australia: a boost for EV adoption " data-description="The Australian Government's electric car discount is a game-changer for both individuals and businesses, aiming to make EVs more accessible by providing significant financial incentives. With this..." data-media="https://www.globalfleet.com/sites/default/files/field/image/shutterstock_1903471954.jpg"> </div> <div class="label-share"> <span>Share</span> </div> </div> </div><div class="required-fields group-content field-group-html-element"><div class="field field-name-field-published-date field-type-datetime field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2024-10-22T12:45:00+02:00">22 Oct 24</span></div> </div><div class="field field-name-title-field field-type-text field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><h1>EV incentives in Australia: a boost for EV adoption </h1> </div> </div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-hidden multiple "> <div class="field-item even field-item-first field-item-0"><a href="/en/tags/australia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Australia</a></div> <div class="field-item odd field-item-1"><a href="/en/tags/taxation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Taxation</a></div> <div class="field-item even field-item-last field-item-2"><a href="/en/tags/incentives" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Incentives</a></div> </div><div class="field field-name-body field-type-text-with-summary field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0" property="content:encoded"> <p><span><span>The Australian Government's electric car discount is a game-changer for both individuals and businesses, aiming to make <a href="https://www.globalfleet.com/en/safety-environment/asia-pacific/features/electrification-australia-better-still-long-way-go?a=YHE11&t%5B0%5D=Australia&t%5B1%5D=Electrification&t%5B2%5D=Charging&curl=1" target="_blank">EVs more accessible</a> by providing significant financial incentives. With this initiative, Australians may now find that owning an electric vehicle is more affordable. This program is part of the country's broader effort to accelerate the transition to sustainable transportation and reduce carbon emissions.</span></span> </p> <h2><span><span>Eligibility and Benefits </span></span></h2> <p><span><span>The key component of this program is the Fringe Benefits Tax (FBT) exemption, applicable to new battery-electric and plug-in hybrid vehicles priced up to $89,332. This exemption helps offset the higher upfront costs often associated with electric vehicles, making them more attractive for salary-sacrifice and fleet purchases. One simple way to check if a vehicle qualifies is by ensuring it is not subject to the luxury car tax, which disqualifies vehicles priced above the threshold.</span></span></p> <p><span><span>The FBT exemption is crucial because EVs generally cost more than their petrol or diesel counterparts, and without this relief, businesses and individuals face a higher tax burden. The program thus eliminates a significant barrier for companies looking to adopt electric vehicles, helping them save up to $10,000 annually depending on how the vehicles are used.</span></span></p> <h2><span><span>Impact on Fleets and Second-Hand Market </span></span></h2> <p><span><span>The program is expected to have a significant impact on both company fleets and the second-hand <a href="https://www.globalfleet.com/en/new-energies/others/features/australia-gets-ready-ev-sales?a=JMA06&t%5B0%5D=Australia&t%5B1%5D=Toyota&t%5B2%5D=EVs&t%5B3%5D=Electrification%3B%20CO2%20target&curl=1" target="_blank">vehicle market</a>. Since many businesses provide vehicles for employees, and these vehicles are often used privately, they become subject to FBT. With the electric car discount, companies can purchase EVs for their fleets and offer them to employees without incurring the additional tax burden. This incentivizes businesses to opt for electric over traditional vehicles, boosting the overall number of EVs on the road.</span></span></p> <p><span><span>As these fleet vehicles are typically sold after three to four years, the program is set to provide the second-hand market with affordable electric vehicles in the near future. Many of these second-hand EVs will still be under warranty, providing a cost-effective alternative for everyday Australians who might otherwise struggle with the high upfront cost of a new EV.</span></span></p> <h2><span><span>Employee Benefits and Salary Sacrifice </span></span></h2> <p><span><span>For employees, the FBT exemption makes salary-sacrificing an EV through a novated lease more attractive than ever. A novated lease allows an employee to pay for the vehicle using pre-tax income, reducing their overall income tax. With the new incentive, employees could save between $3,000 and $5,000 annually in income tax, potentially making the total cost of an EV as cheap, if not cheaper, than a petrol or diesel vehicle. </span></span></p> <h2><span><span>Looking Ahead </span></span></h2> <p><span><span>While the program currently extends to 2025 for plug-in hybrid vehicles, and possibly 2027 for fully electric ones, consumers should be mindful that if the incentive is withdrawn, their vehicle may become subject to FBT. This could affect the financial viability of keeping the car long-term. For now, however, the electric car discount is a significant step toward increasing EV adoption across <a href="https://www.globalfleet.com/en/taxation-and-legislation/asia-pacific/analysis/red-tape-sustainability-mandatory-ghg-reporting-australia?a=YHE11&t%5B0%5D=Australia&t%5B1%5D=GHG%20Reporting&t%5B2%5D=Legislation&curl=1" target="_blank">Australia</a>.</span></span></p> <p><span><span>In Australia, much like in other parts of the world, incentives are appreciated but cannot be taken for granted. Several state initiatives have already been reviewed, reduced, or even cancelled, while others are limited by budget constraints or only take effect once a certain threshold of EV penetration is reached. Although consumers and businesses seek clarity and consistency from their governments regarding EV subsidies, it remains a challenging task for policymakers to maintain such support. </span></span></p> <h2><span><span>Overview of all Incentives</span></span></h2> <h3>Federal Incentives</h3> <ul> <li><span><span>Fringe Benefits Tax (FBT) Exemption : Aimed at businesses, this incentive allows electric vehicles to be exempt from FBT, reducing the cost of providing EVs to employees as company cars.</span></span></li> <li><span><span>Import Tariff Exemption : EVs priced below the luxury car tax threshold (currently $89,332 for fuel-efficient cars versus $76,950 for petrol and diesel cars) are exempt from import duties. This saves buyers a 5% import tax, making imported EVs more affordable.</span></span></li> </ul> <h3><span><span>State Incentives</span></span></h3> <p><strong><span><span>Queensland:</span></span></strong></p> <ul> <li><span><span>Rebates : Offers a generous rebate of up to $6,000 for electric vehicles under $68,000, only for households with a taxable income below $168,000</span></span></li> <li><span><span>Registration Discounts : Queensland provides discounts on registration fees for EVs, contributing to lower ongoing costs for EV owners.</span></span></li> </ul> <p><strong><span><span>  </span></span><span><span>New South Wales (NSW):</span></span></strong></p> <ul> <li><span><span>Stamp Duty Exemption : An attractive exemption for EVs priced under $78,000, reducing the cost of registration, was applicable until 01/01/2024, but is now cancelled</span></span></li> </ul> <p><strong><span><span> </span></span><span><span>Victoria (VIC):</span></span></strong></p> <ul> <li><span><span>Registration Savings : Owners of electric cars benefit from a $100 reduction in registration fees, lowering the yearly costs of vehicle ownership.</span></span></li> <li><span><span>Road-user charge exemption for zero and low emission vehicles (ZLEV) is formalized by court decision on 18/10/2023, providing a refund for any ZLEV owner</span></span></li> </ul> <p><strong><span><span>South Australia (SA):</span></span></strong></p> <ul> <li><span><span>Registration Discounts : South Australia offers 3-year reduced registration fees for EV owners</span></span></li> </ul> <p><strong><span><span>Western Australia (WA):</span></span></strong></p> <ul> <li><span><span>Rebate : Offers up to $3,500 in rebates for EVs priced under $70,000, for the first 10,000 buyers</span></span></li> <li><span><span>Registration and Stamp Duty Discounts : Western Australia provides a two-year exemption from registration fees and stamp duty reductions for EV purchases.</span></span></li> </ul> <p><strong><span><span>Tasmania (TAS):</span></span></strong></p> <ul> <li><span><span>As part of the Electric Vehicle Rebate program, EV buyers in Tasmania can receive $2,000 off the price of an eligible battery EV.</span></span></li> </ul> <p><strong><span><span> </span></span><span><span>Northern Territory (NT):</span></span></strong></p> <ul> <li><span><span>Stamp Duty and Registration : EV owners benefit from reduced stamp duty and registration costs for EVs under $50,000, encouraging the transition to electric vehicles in the territory. Due to the low threshold, only few (Chinese) EVs benefit from the incentive</span></span></li> </ul> <p><strong><span><span>Australian Capital Territory (ACT):</span></span></strong></p> <ul> <li><span><span>Free Registration : EVs benefit from lowered registration fees for the first two years </span></span></li> <li><span><span>Stamp Duty Waiver : No stamp duty is payable on EVs, creating an incentive for buyers to switch to electric options</span></span></li> <li><span><span>An interest-free loan of up to $15,000 is a unique incentive for drivers looking at buying an EV as part of their sustainable household scheme</span></span></li> </ul> <h3><span><span>Additional Incentives</span></span></h3> <p><span><span>Several states also offer interest-free loans or rebates for installing home EV chargers, contributing to both the affordability of the vehicle and its infrastructure. For example, the ACT offers a  $15,000 interest-free loan  for the purchase of an electric vehicle and associated charging infrastructure. </span></span></p> <h3><span><span>For more information:</span></span></h3> <ul> <li><span><span>Queensland: <a href="https://www.qrida.qld.gov.au/program/queensland-zero-emission-vehicle-rebate-scheme" target="_blank">https://www.qrida.qld.gov.au/program/queensland-zero-emission-vehicle-rebate-scheme</a> & <a href="https://www.qld.gov.au/transport/registration/fees/cost" target="_blank">https://www.qld.gov.au/transport/registration/fees/cost</a> & <a href="https://www.qld.gov.au/transport/registration/fees/duty/calculator" target="_blank">https://www.qld.gov.au/transport/registration/fees/duty/calculator</a> </span></span></li> <li><span><span>ACT: <a href="https://www.accesscanberra.act.gov.au/driving-transport-and-parking/registration/incentives-for-low-and-zero-emissions-vehicles" target="_blank">https://www.accesscanberra.act.gov.au/driving-transport-and-parking/registration/incentives-for-low-and-zero-emissions-vehicles</a> & <a href="https://www.climatechoices.act.gov.au/policy-programs/sustainable-household-scheme" target="_blank">https://www.climatechoices.act.gov.au/policy-programs/sustainable-household-scheme</a></span></span></li> <li><span><span>NSW: <a href="https://www.nsw.gov.au/driving-boating-and-transport/nsw-governments-electric-vehicle-strategy/ev-rebates" target="_blank">https://www.nsw.gov.au/driving-boating-and-transport/nsw-governments-electric-vehicle-strategy/ev-rebates</a> & <a href="https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/electric-vehicles/EV-master-plan-map" target="_blank">https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/electric-vehicles/EV-master-plan-map</a></span></span></li> <li><span><span>VIC: <a href="https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge" target="_blank">https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge</a></span></span></li> <li><span><span>TAS: <a href="https://www.premier.tas.gov.au/site_resources_2015/additional_releases/driving-switch-to-electric-vehicles" target="_blank">https://www.premier.tas.gov.au/site_resources_2015/additional_releases/driving-switch-to-electric-vehicles</a></span></span></li> <li><span><span>SA: <a href="https://www.treasury.sa.gov.au/Growing-South-Australia/incentives-for-electric-vehicles" target="_blank">https://www.treasury.sa.gov.au/Growing-South-Australia/incentives-for-electric-vehicles</a></span></span></li> <li><span><span>WA: <a href="https://www.transport.wa.gov.au/projects/zero-emission-vehicle-zev-rebate.asp" target="_blank">https://www.transport.wa.gov.au/projects/zero-emission-vehicle-zev-rebate.asp</a></span></span></li> <li><span><span>NT: <a href="https://nt.gov.au/driving/rego/getting-an-nt-registration/get-electric-vehicle-registration-and-stamp-duty-concessions" target="_blank">https://nt.gov.au/driving/rego/getting-an-nt-registration/get-electric-vehicle-registration-and-stamp-duty-concessions</a> </span></span></li> </ul> </div> </div> <div class="author">Authored by: <b>Yves Helven</b></div><div class="field-regions-with-themes field-name-field-channels"><div class="field-item"><a href="/en/themes/fleet-strategy">Fleet Strategy</a></div><div class="field-item"><a href="/en/themes/leasing-and-rental">Leasing and Rental</a></div><div class="field-item"><a href="/en/themes/manufacturers">Manufacturers</a></div><div class="field-item"><a href="/en/themes/safety-environment">Safety & Environment</a></div><div class="field-item"><a href="/en/themes/taxation-and-legislation">Taxation and Legislation</a></div><div class="field-item"><a href="/en/themes/technology-and-innovation">Technology and Innovation</a></div><div 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