NSW Government pledges $105m to offset EV fleet costs

EV fleet incentives NSW Government
EV fleet incentives NSW Government

22 November 2021: The NSW Government has announced new incentives totalling $105 million to encourage businesses, not-for-profits, hire companies and local councils with more than 10 vehicles to convert their fleet to certain types of electric vehicles (EVs).

Supplementing a $490 million commitment detailed in the government's 2021 budget to assist NSW’s transition to EVs, the fleet incentives will extend rebates and exemptions on battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEV) to reduce the price gap between them and comparable internal combustion engine models.

The incentives will be available for BEV and FCEV passenger vehicles and SUVs with a recommended retail price of less than $100,000 inclusive of GST. Light commercial vehicles such as utes and vans are also included without a price cap. More information on eligibility can be found in the Drive Electric NSW EV fleets incentive report.

Run in a ‘reverse bidding’ style, fleet operators can request support based on the level of incentive needed to procure eligible EVs.

Fleet vehicles currently make up roughly half of new-car sales in Australia and generally have a short tenure, meaning increased EV volume in fleets now will result in more affordable, pre-owned examples on the used market in coming years.

Treasurer and Minister for Energy and Environment Matt Kean says the segment is crucial to NSW reaching the targets set out in its Electric Vehicle Strategy and making EVs more commonplace on our roads:

“NSW is on track to have EVs make up more than half of new cars on the road by 2030 ... Fleet buyers make up about 50 per cent of new vehicle sales and usually sell them after three to four years, creating a great opportunity for us to increase the second hand EV market for the whole community,” Mr Kean said.

The savings will continue after the vehicle has been procured, the government claims, with operators saving up to $3100 on annual running costs (compared to ICE vehicles) and reducing their CO2 emissions by roughly five tonnes per vehicle on average.

“Whether you’re a hire car operator, in the delivery business or own a construction company, these new fleet incentives will make it easier for your business to transition to EVs while enjoying the benefits of reduced costs and emissions,” Mr Kean said.

How can businesses apply for EV fleet incentives?

A virtual information session will be held for businesses interested in converting their fleet to EV on 30 November, covering all relevant dates and providing an overview of the bidding process.

Parties can reserve their virtual seat here.

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