NSW announces incentives to promote electric vehicle purchases

NSW - Incentives - electric vehicles - EV — Image courtesy of Michael Fouser on Unsplash

Stamp duty on electric vehicles (EV) is set to be removed, as part of the New South Wales Government’s $500 million investment to make EVs more accessible and affordable for residents throughout the state.

The incentives will increase the accessibility of EV’s over the next four years, with stamp duty no longer applying for eligible EVs under $78,000.

An additional $3000 rebates will be available for the first 25,000 purchasers of battery and hydrogen fuel cell electric vehicles under $68,750.

Residents will be able to receive the mentioned benefits from September this year, with the average NSW motorists set to save $1000 annually if they switched to an EV.

For businesses, taxis, and freight organisations, the savings could be up to $7500 annually.

NSW Transport Minister Andrew Constance said the increasingly impactful effects of climate change were a major factor behind the announcement.

“Electric vehicles are not only cheaper to run and quieter on our roads, but they also reduce both carbon emissions and air pollution which results in dramatically improved health outcomes for our communities,” he said.

The rebate program from New South Wales Government follows that of the Victorian Government, which is offering to pay $3000 for up to 20,000 electric vehicle purchases under $69,000, as part of a $100-million plan to encourage electric vehicle use.

Infrastructure Partnerships Australia (IPA) Chief Executive Adrian Dwyer said the announcement by the NSW Government was further proof that an EV future can be achieved through collaboration.

“There is now a consensus across the political aisle in Australia’s two largest states that a road user charge for EVs is smart future-focused reform,” he said.

“In the last month, more than 600 registrations of interest have been made to Victoria’s EV subsidy program and imports of new electric vehicles to the state have more than tripled in the last six months.

“Combining the $3,000 upfront subsidy with the removal of stamp duty, alongside the investment in network charging infrastructure and state and non-state fleet targets will turn the ignition on the transition to a greener transport sector.”

The IPA also encouraged the NSW Government to throw further support for EVs as part of the road user charging legislation.

The legislation has already been supported by the Victorian Government, with the proposal to see EV owners pay 2.5 cents for every kilometre they drive, and owners of plug-in hybrids to pay 2.0 cents.

Last month, the Victorian Parliament passed the Zero and Low Emission Vehicle Distance-based Charge Bill 2021, which will impose distance-based charges on electric vehicles, effective from July 1.