EV grants and incentives in Australia: rebates and tax breaks explained

Electric vehicles (EVs) are gaining ground in Australia, and as you'll see in Open Road, we have plenty of electric car reviews to help you consider what's right for you. 

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 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.
• In the 2026 Federal Budget, the government revealed it would step down the 100% FBT waiver for eligible EVs under the Electric Car Discount Bill over three years. For more information see here. 
• The LCT (luxury car tax) threshold for fuel efficient cars (including zero emissions vehicles, or ZEVs) tops out at at $91,387 for the 2025-2026 financial year and will increase to $91,661 in the 2026-2027 financial year, and is aimed at encouraging uptake of low and zero tailpipe emissions vehicles.  By comparison, internal combustion cars imported into Australia and valued at more than $80,567 ($80,809 in 2026-2027) are subject to the LCT.
• Under the Australia-European Union Free Trade Agreement (A-EU FTA) signed on 24 March 2026 and subject to the passing of relevant legislation, a new category will be established under the LCT for zero emissions vehicles only, with a threshold of $120,000 from 1 July 2027. 
• 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.  

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. 

EV grants for businesses

Most government-funded incentives to go electric are now closed, with the exception of the federal DRIVEN Charger Rebate Scheme, the NSW EV Fleets Incentive (Kick-Start funding) and the ACTand Queensland's discount for low emissions vehicle registration. See details below.

In addition to Australia-wide incentives encourage the uptake of electric vehicles, such as import tax waivers and fringe benefits tax exemptions, the Federal Government has also introduced an EV charger rebate scheme. 

Federal DRIVEN Charger Rebate Scheme  

• Grant allocation: $40 million.  
• Purpose: To provide co-funding for dealerships and EV repairers to install EV chargers.  
• Grant details: Up to $2,500 per eligible smart EV charger purchased and installed on the business site. Available for multiple EV chargers with a maximum $20,000 rebate amount per eligible site. 
• Eligibility: Review the funding guidelines to check if your business is eligible. Available for a licenced motor dealer/traders, service centres associated with a licenced motor dealer/trader and automotive repair businesses which have staff suitably qualified to undertake work on EVs. 
• Status: OPEN   
• Closes: 30 April 2028, 5 pm AEST.  
• Link: DRIVEN Charger Rebate Stream

New South Wales

The New South Wales Government offers grants for fleet upgrades and EV charging infrastructure, with significant support for both urban and regional projects.

EV Fleets Incentive (Kick-start funding)  

• Grant allocation: $13 million. 
• Purpose: Supporting organisations that want to pilot EVs before committing to a larger transition or smaller fleets seeking a simplified application process. 
• Eligibility: Review the funding guidelines to check if your business is eligible. Kick-start funding is available for a maximum of 10 vehicles registered and used predominantly in NSW. 
• Grant details: Tiered funding is available to support the purchase of electric fleet vehicles up to 4.5 tonnes. Additional funding is also available to support the installation of a smart charging port per funded vehicle.
• Status: OPEN  
• Closes: 5pm 30 November 2026. 
• Link: NSW EV fleets incentive (kick-start funding model)

EV Fleets Incentive (Competitive bid funding)  

• Grant allocation: $7 million. 
• Purpose: Assist businesses with 21 or more vehicles in their fleets who are looking to purchase 11 or more vehicles. 
• Status: Closed
• Link: NSW EV Fleets Incentive (competitive bid model)

Electric Vehicle Destination Grants

• Grant cap: $12 million in Round 3 
• Purpose: To supplement the existing network of slower AC destination chargers and ultra-fast charging stations. 
• Status: Closed
• Link: NSW Destination Charging Grants  

EV Ready Building Grant

• Grant Cap: $10 million
• Purpose: Assist businesses in preparing buildings for EV infrastructure.
• Status: Closed
• Link: NSW EV Ready Buildings

Australian Capital Territory

The ACT is shifting to an emissions-based vehicle registration system in 2024, offering ongoing savings to businesses with low-emission fleets.

Business EV Charger Rebate ACT 

• Purpose: To assist fleet businesses to purchase and install EV charging infrastructure on their premises. 
• Status: Closed
• Link: Business Electric Vehicle Charger Rebates 

Emissions-Based Vehicle Registration

• Purpose: Businesses transitioning to zero- and low-emission vehicles will receive cheaper registration.
• Status: OPEN
• Link: ACT Registration Scheme
  

Victoria

All previous grants for electric vehicles in Victoria have closed.

ZEV Commercial Sector Innovation Fund

• Grant cap: $5 million
• Purpose: As a recipient of the grant, AGL is offering 30 per cent subsidies on EV subscriptions for businesses.
• Status: Closed
• Link: AGL VIC Govt grant - EV subscription

EV Charging for Business Fleets

• Grant cap: $1.5 million
• Purpose: Support businesses in installing EV charging infrastructure.
• Status: Closed
• Link: EV Charging for Business Fleets

Zero Emissions Vehicle (ZEV) Emerging Technologies Grant

• Grant cap: $2.2 million
• Purpose: Promote innovative ZEV technologies for businesses.
• Status: Closed
• Link: Zero Emissions Vehicle Emerging Technologies

Destination Charging Across Victoria Program

• Grant cap: $5 million
• Purpose: Support the rollout of EV chargers at key destinations across Victoria.
• Status: Closed
• Link: Destination Charging Across Victoria Program

Queensland

Queensland offers vehicle registration and stamp duty discounts for businesses transitioning to electric vehicles, making it one of the most accessible states for EV support.

Zero Emission Vehicle Rebate Scheme

• Maximum grant: Up to $6,000 per vehicle (maximum of five rebates per business annually)
• Purpose: Assist drivers and businesses in adopting zero-emission vehicles.
• Status: Closed
• Link: Queensland ZEV Rebate

Vehicle Registration and Stamp Duty Discount

• Maximum discount: Varies by according to powertrain and number of cylinders
• Purpose: Provide businesses (and drivers) with discounts on registration and stamp duty for EVs and less powerful vehicles
• Status: Open
• Link: Queensland Registration Discounts

Northern Territory

NT's EV charger grants remain open, providing small businesses with an affordable way to install EV charging infrastructure.

EV Charger Grants Scheme

• Maximum grant: Up to $2,500 for businesses to install EV chargers.
• Purpose: Support businesses in installing charging infrastructure for electric vehicles.
• Status: Closed
• Link: NT EV Charger Grants

South Australia

South Australia offers a straightforward, long-term registration exemption for new EV purchases, available to businesses with vehicles under a price cap.

EV Registration Exemption

• Maximum discount: Three-year exemption on vehicle registration
• Status: Closed
• Link: SA EV Incentives

Western Australia

WA offers co-funding for electric vehicle chargers, and a generous rebate for new EV registrations. 10,348 EV rebates have been paid totalling $36.2 million as of 31 January, 2025. 

Charge Up EV Charging Grants 

• Grant allocation: $15 million 
• Purpose: To encourage EV uptake by co-funding up to 50 per cent of the cost of electric vehicle charger installations by eligible entities. 
• Status: Closed
• Link: Charge Up EV Charging Grants

Zero Emission Vehicle Rebate

• Max Rebate: $3,500 for newly registered EVs, including cars, SUVs, utes, vans, and light trucks.
• Status: Closed
• Link: WA ZEV Rebate

Tasmania

Tasmania offers businesses both rebates and zero-interest loans for EV-related upgrades, though some rebates are nearing their limit.

Electric Vehicle ChargeSmart Grants Program 

• Grant allocation: Up to $50,000 co-funding per eligible entity. 
• Purpose: To support upfront costs of buying and installing/upgrading existing public EV fast charging infrastructure in Tasmania. 
• Status: Closed
• Link: Electric Vehicle ChargeSmart Grants Program TAS 

Deliver-e Small Business Grant Program

• Grant allocation: $300,000
• Purpose: To help Tasmanian small businesses to help them purchase battery electric delivery vans and cargo e‑bikes
• Status: Closed
• Link: Deliver-e Small Business Grant Program

Energy Saver Loan Scheme

• Maximum loan: Zero-interest loans from $500 to $10,000 for energy-efficient upgrades, including AC EV chargers.
• Scheme details: Businesses that have been registered for a minimum two years and comply with certain other requirements are eligible.
• Status: Closed
• Link: Tas Energy Saver Loans

Tasmania EV Rebate

• Maximum rebate: $2,000 per EV
• Status: Closed
• Link: Tas EV Rebates

These grants and incentives across Australia present an array of options for businesses looking to transition to electric vehicles or enhance their EV infrastructure. Businesses should act quickly on opportunities still open to ensure they benefit from the available financial support.