Taking the plunge and trying an electric vehicle for the first time feels pretty daunting for most of us who have spent our entire lives behind the wheel of an ICE vehicle. For much of our lives, EVs didn’t even seem like a viable option in the near future. However, in recent years, federal and state governments have set ambitious emissions targets, with the federal goal being net zero by 2050. Encouraging EV adoption has been a key part of government policy around getting our greenhouse gases down, and as a result we’ve seen monetary incentives and rebates of EV’s pop up in every state.

We’ve compiled a 2024 guide detailing all the incentives available to you based on your state or territory, along with any federal incentives you can access.

It’s important to note that each incentive comes with its own stipulations, which may limit your eligibility. Additionally, incentives are constantly changing, so be sure to check your state government’s website to confirm the availability of the incentive.

Federal Incentives

The longest standing government EV incentive is the differential Luxury Car Tax threshold rate (LCT), applied to electric vehicles and ICE vehicles. Since 2012, the Federal government has set a higher Luxury Car Threshold for fuel efficient vehicles, allowing you to purchase a more expensive fuel efficient vehicle while incurring less tax. LCT is applied at 33%, and means that for every dollar above the threshold you will be taxed an extra 33 cents. For the 2024/2025 tax year the LCT for non fuel efficient vehicles is $80,657 while the amount for fuel efficient vehicles is $91,387.

In July of 2022, the Federal Government implemented its National Electric Vehicle Policy, marking the most significant push thus far for Australians to adopt electric vehicles. Two aspects of the policy were particularly relevant to the savvy Aussie consumer: the removal of customs duty on EVs and exemption from Fringe Benefit Tax for electric vehicles under the Luxury Car Tax threshold.

Customs duty is the 5% tariff imposed on imported goods. As of July 2022 all electric, plug-in hybrid and hydrogen fuel-cell vehicles with a value below the LCT are exempt from customs duty. This exemption applies to vehicles intended for home consumption, and does not include vehicles imported from Russia and Belarus.

Lastly, in December 2022, the federal government passed the Electric Car Discount Bill. This bill allows zero or low emissions vehicles priced under the LCT threshold to be exempt from FBT when purchased through a novated lease. The exemption enables drivers to pay for their new EV entirely with their pre-tax salary, lowering their taxable income and providing tax savings through reduced income tax. As a result, purchasing an EV through a novated lease is consistently cheaper than buying with cash, personal finance, or a mortgage redraw. For instance, when comparing a petrol and an electric vehicle both priced at $60,000, EV drivers pay almost $150 less per week and save $15,000 more over the life of their lease.

Queensland

The Sunshine State has set lofty EV uptake goals, with the QLD government aiming for 50% of new passenger vehicles sales to be zero emission vehicles by 2030. To get there, QLD Gov are offering the most generous rebate scheme in the country, with up to $6,000 in rebates available to EV drivers.

Rebates

To be eligible for the $3,000 rebate you must:

• Have purchased a zero emissions vehicle (ZEV) up to the dutiable value of $68,000 (inc GST) on or after 21 April 2023 or
• Have purchased a ZEV up to the value of $58,000 between 16 March 2022 – 20 April 2023

To be eligible for the $6,000 rebate you must:

• Have purchased a new eligible ZEV up to the value of $68,000 on or after 21 April 2023 and have a total household taxable income equal to or less than $180,000 per annum or
• Have purchased a new eligible ZEV up to the value of $58,000 between 16 March 2022 and 20 April 2023 and have a total household income equal to or less than $180,000 p.a.

Businesses can also benefit from the rebate and are eligible for the $3,000 rebate if they meet the following:

• Have purchased a new eligible ZEV up to the value of $58,000 on or after 16 March 2022, already received an initial ZEV under the scheme and have a total household taxable income equal to or less than $180,000.

The rebate scheme is limited to one rebate per individual or up to 5 rebates per year for businesses.

Discounted Registration and Stamp Duty

In addition to the rebate scheme, electric vehicle drivers benefit from reduced stamp duty and discounted registration in QLD. Stamp duty costs are reduced to $2 per $100 up to $100,000 (dutiable value) and $4 per $100 value thereafter, while ICE vehicles are subject to $6 per $100.

Queensland has also introduced reduced registration for electric vehicles, with EVs attracting the lowest registration rate out of all vehicles, regardless of size.

Victoria

Victoria led the charge by being the first state to introduce a rebate scheme to encourage residents to purchase their first EV. However, it was also the first to cease the scheme. Over the duration of the program, just under 10,000 zero emission vehicle subsidies were dispersed between May 2021 and June 2023. Despite this, the Garden State remains committed to its net zero by 2050 goal, aiming for half of all new vehicle sales to produce zero tailpipe emissions. Though the rebate has now ceased, Victoria is still taking measures to reach their goal.

Registration & Stamp Duty

VicRoads currently offers a $100 discount on registration that is automatically applied to electric, hydrogen or plug-in electric hybrid vehicles.

Electric vehicles are also exempt from luxury vehicle rates of stamp duty. Instead, they have a flat rate of $8.40 per $200 of market value, regardless of purchase price. This exemption can result in significant savings, as the rate for vehicles valued over $80,567.01 increases to $10.40 per $200 and can go up to $18.00 per $200 for vehicles priced over $150,000.

New South Wales

As with Queensland and Victoria, NSW has set similar goals of emissions neutrality by 2050, and 50% of new car sales being zero emissions by 2030. New South Wales has followed Victoria by discontinuing its $3,000 rebate scheme and stamp duty exemption from January 1st 2024, with additional remaining funds to go towards public EV charging infrastructure.

Australian Capital Territory

ACT has set the most ambitious goals in the country with the goal for 100% of new vehicles purchased to be EVs by 2030, aligning with many European districts. To reach these targets, ACT introduced one of the most extensive incentive programs in Australia.

Registration

The ACT ceased their EV registration fee exemption scheme as of 30 June 2024, but has reconfigured the registration calculation method to be emissions-based. This allows for lower registration fees for low-emission vehicles, including zero-emission vehicles, plug-in hybrids, hybrid electric vehicles, and low-emission ICE vehicles.

Stamp Duty

Electric vehicles are now exempt from stamp duty in the ACT. This includes new or used zero-emission vehicles, new plug-in hybrid or hybrid vehicles purchased from 1 August 2022, and used PHEVs and HEVs purchased after 1 July 2023.

Interest-free Loans

ACT residents are eligible for $2,000 to $15,000 in interest-free loans to purchase a new electric vehicle under the LCT threshold or a home charger. This interest-free loan also extends to other energy-efficient products, including rooftop solar panels and electric stoves. The loan must be repaid within 10 years and comes with zero interest and no upfront costs or fees.

Northern Territory

Northern Territory has lagged behind the other states and territories in EV uptake, with EVs comprising only 2.1% of new vehicle purchases in 2023. The slow uptake can be partly attributed to the state’s unique attributes, including long distances, a small and widely dispersed population, and extreme weather conditions. While the NT government hasn’t set an explicit EV uptake target, the state is aiming for 50% renewable energy by 2030.

To boost uptake in NT the state has implemented a number of measures to incentivise EV purchases:

Stamp Duty and Registration

NT residents purchasing an EV are eligible for a $1,500 subsidy on stamp duty for battery electric and plug-in hybrid vehicles from 1 July 2022 to 30 June 2027. This subsidy applies if the market value of the vehicle is $50,000 or less. For vehicles valued over $50,000, a 3% stamp duty applies on the amount exceeding $50,000. Additionally, EV buyers are eligible to have the registration fee waived, resulting in an annual saving of $91.

EV Grant Scheme

EV drivers in the NT can benefit from the Electric Vehicle Charger Grant Scheme, which provides individuals with up to $1,000 towards the cost of a residential EV charger. For businesses installing a charger onsite, the grant amount is increased to $2,500.

Tasmania

In 2022, Tasmania reviewed its emissions targets and set new goals of achieving net zero or lower emissions by 2030. The state is on par with NSW for EV uptake, trailing only the ACT, and has started to reduce its EV incentives.

Previously, Tasmanian drivers were eligible for free stamp duty and registration until 30 June 2023.

Electric Vehicle Rebate

One of Tasmania’s last remaining EV incentives is their rebate program, which grants new EV drivers $2,000 when purchasing an EV. However, the Tasmanian Government’s website advises that there are only 30 rebates available for the remainder of the scheme. However, drivers should note that electric vehicles purchased via a novated lease are not eligible to receive a rebate, as the upfront costs associated with purchasing a vehicle are avoided under a novated lease scheme.

Interest-free Loans

Tasmanians can also receive interest-free loans valued between $500 and $10,000 to purchase energy-efficient upgrades, including electric vehicle home chargers. These loans require fortnightly repayments with terms between one and three years.

South Australia

South Australia is setting its sights on becoming a national leader in electric vehicle uptake, smart charging and utilising renewable energy sources, with a goal of 100% of new vehicles sold being zero emissions by 2035. Additionally, the SA Government aims to reduce greenhouse gas emissions by 50% by 2030 from 2005 levels.

Rebate

Unfortunately, South Australia has ceased its $3,000 EV rebate scheme as of December 31st 2023. If you had a vehicle valued at $68,750 or less on order with a binding contract prior to January 1st 2024 and have yet to receive delivery, you are also eligible for the subsidy.

Three-year Registration Exemption

Since 2021, the South Australian government has offered a three-year registration fee exemption for new battery electric and hydrogen fuel cell vehicles valued at $68,750 or less. This exemption applies to vehicles first registered between 28 October 2021 and 30 June 2025, extending three years from the first registration of the vehicle. There are no restrictions on the number of registration exemptions an individual can apply for, provided each exemption is for a different eligible vehicle. The exemption does not extend to CTP, ESL, and stamp duty payable when a vehicle is first registered.

Western Australia

Western Australia, with the second lowest percentage of new vehicles sold as EVs after the Northern Territory, is nonetheless showing considerable commitment to the 2050 net zero emissions targets.

Rebates

While other states are winding down their rebate programs, WA is going full throttle with their commitment to encourage EV trials and purchases. In May 2022, WA invested $60 million dollars in a scheme which granted WA drivers a $3,500 subsidy for the first 10,000 EVs purchased priced under $70,000. In 2024, the Cook Labour government invested a further $5.1 million into the scheme, to meet demand and allow for a further 1,485 rebates.