The NRMA strongly supports the NSW Government’s sweeping tax reforms and initiatives aimed at making it cheaper and easier to purchase and own an electric vehicle (EV) in NSW. We also support ACT Government's leadership role in driving reform.
From September 2021, the NSW Government has waived stamp duty on EVs valued at less than $78,000, and the first 25,000 people to buy an EV or hydrogen fuel cell car valued at less than $68,750 will receive a $3000 rebate. Under the road and tax reforms, part of a $490 million commitment in the 2021-22 NSW budget, electric vehicles will ultimately be subject to a per-kilometre road user charge instead of stamp duty and fuel excise.
The program is the first step in the NSW Government’s goal to have EVs represent 53 per cent of new vehicles sold in NSW by 2030.
NSW reforms at a glance
- $490 million in funding and tax cuts
- Aim to cut EV range anxiety, upfront costs and model availability
- Stamp duty waived on EV and hydrogen fuel cell cars valued at less than $78,000
- $3000 rebate on the first 25,000 privately purchased vehicles valued at less than $68,750
- Road user charge to be implemented in July 2027 or when 30 per cent of new vehicle sales are EVs
- $131 million on fast chargers and $40 million on EV chargers at tourist destinations, carparks and hotels
- $33 million to start the transition of government passenger fleet to EVs where possible
- Will make cheapest EV on the market around $40,000 drive away
- Households with limited off-street parking to be no more than 5km from a fast charger
- In the coming months, the NSW Government will update policies and legislation to allow EV drivers to use T2 and T3 transit lanes for a limited time to encourage EV uptake.
Pictured: Andrew Constance - Minister for Transport and Roads in NSW, Matt Kean - NSW Minister for Energy and Environment, Dom Perrottet - NSW Treasurer, Rob Sharp - TNSW Secretary,Rohan Lund - NRMA Group CEO, Behyad Jafari - EV Council CEO
Working towards price parity
“This is not about trading off performance, comfort, convenience or cost to take action on climate change,” says NSW Minister for Energy and Environment, Matt Kean.
“This is about embracing new, better technology that is coming down the cost curve and giving Australian customers choice when they go to buy their new car.”
With the rebate and stamp duty deducted, the cheapest EV currently available in the Australian market, the MG ZS EV small SUV, would cost just over $40,000 drive away. Removing stamp duty and offering rebates are important steps towards achieving purchase price parity with petrol and diesel vehicles.
“Our comprehensive strategy is about making sure we have the right mix in place to incentivise the take-up of electric vehicles, while ensuring everyone who drives on our roads contributes to funding and maintaining them,” says NSW Treasurer, Dominic Perrottet.
NRMA Group CEO, Rohan Lund, says the organisation supports a policy that makes buying and driving an electric vehicle easier and more affordable.
“The biggest impediments to the take-up of electric vehicles that we hear from our membership are price and range anxiety – and the NSW Government’s policy goes straight to those concerns,” Mr Lund says.
“The commitment by the NSW Government to ensure all households with limited off-street parking will be no more than 5km from a fast charger is important because our research shows anxiety about charging continues to be a concern for many drivers.”
Regional areas to benefit
Country areas will also benefit from the program, with $20 million in grants allocated for fast charger installation in regional tourism destinations.
“The government’s announcement of a push towards EV tourism confirms much of what we’re already seeing in our own electric vehicle network – frequent use of our charging stations across regional destinations as a result of increased domestic drive tourism,” Mr Lund says.
“We also welcome the important decision to reform road pricing and defer the start of road user charges until 2027 or when 30 per cent of new vehicle sales are EVs, as it’s clearly too early in the rollout of this new technology to have any financial impediments.”
Tackling vehicle emissions and lowering running costs
Behind all the reforms is a government plan to tackle vehicle emissions. According to Minister for Transport and Roads, Andrew Constance, transport accounts for 20 per cent of greenhouse gas emissions – and almost 50 per cent of those come from passenger vehicles.
“Electric vehicles are not only cheaper to run and quieter on the road, but they also reduce both carbon emissions and air pollution, which results in dramatically improved health outcomes for our communities,” he says.
“The average NSW driver will save around $1000 in running costs by switching to an EV, and those savings can be up to $7500 a year for businesses, taxis and freight.”
The NSW Government is also looking to transition its own passenger fleet to electric, with $33 million devoted to creating charging infrastructure for public transport and on Transport for NSW land. Since government vehicles are typically sold after three to five years, this should increase the number of low-cost second-hand electric cars available to the general public.