EV incentives in Australia

Electric vehicles (EVs) are gaining ground in Australia, but price and policy still play a decisive role in whether drivers make the switch. EVs claimed almost 10 per cent of the new car market in 2024, thanks to a number of EV incentives introduced by federal and state governments.   

Whether it's reducing sticker shock, cutting registration fees, or helping with charger installation, targeted support has made – and can continue to make – the difference between interest and action. In a country where transport is the third-largest source of emissions, these policies haven’t only been helpful — they’ve helped increase EV uptake. 

However, in 2025 EV sales are taking a dive. So, as the country seeks to reduce overall emissions, what policies are still out there encouraging buyers to make the switch to electric?

Federal EV incentives

• The LCT (luxury car tax) threshold for fuel efficient cars (including zero emissions vehicles, or ZEVs) is higher at $91,387 for the 2024-2025 financial year, to encourage higher uptake of low and zero tailpipe emissions vehicles.  By comparison, internal combustion cars imported into Australia and valued at more than $80,567 are subject to the LCT.
• However, word is that the current Labor Government is considering scrapping the Luxury Car Tax altogether, as part of a deal to attract trade investments from Europe.
• All customs duties were removed for battery electric vehicles (BEVs), plug-in electric vehicles (PHEVs) and hydrogen fuel-cell vehicles (FCEVs) with a dutiable value under the LCT threshold from July 2022, except for vehicles from Russia and Belarus which attract a 35 per cent duty.  
• The 2022 Electric Car Discount Bill exempts zero or low tailpipe emissions vehicles below the LCT threshold from Fringe Benefits tax (FBT). This opens up novated leasing for employees, which without the FBT makes EVs far more affordable.

New South Wales EV incentives

• On 1 September 2021, the NSW Government introduced a rebate of $3,000 for the first 25,000 new BEVs and FCEVs categories such as passenger vehicles, sports utility vehicles, light trucks, and light commercial vehicles. This rebate ended prematurely on December 31, 2023, and the Sydney Morning Herald reported that, at the time, less than half had been redeemed. According to the report, at the start of December data showed 10,229 $3,000 EV rebates had been paid out, and a further 931 were being processed, leaving more than 13,000 rebates worth $42 million unclaimed.
• From 1 September 2021 to 31 December 2023, new and used BEVs under $78,000 (incl. GST) were exempt from stamp duty charges in NSW. Plug-in hybrids were excluded. The exemption ended on 31 December 2023.
• Together, the two incentives save EV buyers an average of $5,540 per vehicle. A list of eligible vehicles can be found here.
• Read more about NSW electric vehicle incentives here. 

Australian Capital Territory EV incentives

• From 1 July 2024, the ACT moved to emissions-based registration which means zero emissions vehicles (ZEVs) owners will continue to benefit from reduced registration fees. For more information visit here.
• Previously, until June 30, 2024, all new and used ZEVs were eligible for two years free registration.
• New zero emissions vehicles including cars, motorcycles, utility and light commercial vehicles are exempt from stamp duty.  

• Read more about ACT electric vehicle incentives here.

Victoria EV incentives

• Victoria launched a $3,000 rebate for all new EVs bought for less than $68,740 in 2021. The rebate was initially available for 20,000 new ZEVs or until May 2024. However, the program was prematurely closed on June 30, 2023, with little more than 10,000 rebates claimed. 
• All ZEVs are exempt from luxury vehicle rates of stamp duty and instead are charged a flat rate of $8.40 per $200 of market value regardless of purchase price.
• From July 1, 2021, ZEVs and other low plug-in hybrid vehicles receive a $100 annual discount on vehicle registration. This discount does not apply to all-electric heavy vehicles and motorcycles. 

Queensland EV incentives 

• Queensland doubled its $3,000 rebate for new EVs to $6,000 on April 21, 2023, raising the purchase price threshold to $68,000. On September 2, 2024, the Queensland Government closed the scheme to new applications.
• Electric and hybrid vehicles receive a 33% discount on stamp duty, with a rate of $2 per $100 of sales value (up to $100,000) and $4 per $100 if it is over that value. This is compared to a stamp duty of up to $6 per $100 for higher emission vehicles. More information can be found here. 

South Australia EV incentives

• South Australia introduced a $3,000 rebate and three years of free registration for the first 7,000 battery electric or fuel cell (hydrogen) vehicles valued at less than $68,750 in October 2021. Battery electric and hydrogen vehicles first registered between 28 October 2021 and 30 June 2025 are still eligible for three years of free registration.
• It ended the scheme on January 1, 2024. 

Western Australia EV incentives

• Western Australia introduced a $3,500 rebate for the first 10,000 buyers of new ZEVs including BEVs and FCEVS for vehicles with a dutiable value of $70,000 or less that are licensed for road use from July 2022.
• On May 6, 2024, the Western Australian government announced it would expand its rebate, investing a further $5.2 million to help fund the purchase of more new pure battery electric or hydrogen vehicles.
• As of April 2025, 12,456 rebates worth $43,596,000 had been claimed.
• For more information visit here. 

Tasmania EV incentives

• Tasmania offered $2000 rebates for e-mobility from 1 July 2024. This rebate is now no longer available.
• From July 1, 2021, and until June 30, 2023, there was a two-year stamp duty waiver for all new and used EV purchases, regardless of price.
• In this two-year period, Tasmania also waived registration fees for all-electric vehicles used in hire and drive services.

Northern Territory incentives 

• Buyers of new or used EVs, fuel-cell and plug-in hybrids receive a $1500 discount in stamp duty for vehicles with a dutiable value of up to $50,000 until July 2027.
• For the same period, new and existing BEVs and PHEVs also receive free registration. This includes previously registered, interstate-transferred, and imported or modified EVs.
• Until June 30, 2024, homeowners and businesses could apply for $1,000 and $2,500 respectively to buy and install an electric vehicle charger.  

Road user charges

Declining fuel excise (due to more efficient vehicles including hybrids) has seen calls for the federal tax to be replaced by a general road user charge. Initially there were moves by some state governments to introduce such a charge. 

The NSW State Government said that from July 1, 2027, or when EVs make up more than 30 per cent of all new cars sold in NSW, it would introduce an EV road user charge (RUC) to compensate for the reduction in fuel excise revenue. Plug-in hybrids were also to pay a reduced charge and fuel excise. The RUC is indexed to CPI (Consumer Price Index) each year, with the 2022-2023 financial year rated at 2.610c/km for BEVs and FCEVs and 2.088c/km for PHEVs.

However, this plan was scrapped after a High Court decision ruled a similar plan implemented by the State of Victoria was unconstitutional. Controversially, Victoria had implemented a road user charge for EV owners at a rate of 2.5c/km for BEV and FCEV owners, with a separate charge for PHEV owners of 2.0c/km. The rate was then increased to 2.8c/km for BEVs and FCEVs, and to 2.3c/km for PHEVs. More information can be found here.