EV incentives in Australia 2024 (state-by-state guide)

How much can you save on your next car?

Sales of electric vehicles in Australia increased by more than 160% in 2023 compared to 2022, helped in no small part by government incentives for EV owners.

There are both federal and state-based incentives available, depending on where you live. In some cases, EV drivers may be able to cash in on multiple schemes aimed at boosting sales of fuel-efficient models. 

Here we round up the EV incentives available Australia-wide and in each state and territory. We also explain what savvy drivers can do to maximise their EV discount.

Federal EV incentives (Australia-wide)

To start off with, there are several EV incentives in Australia that apply wherever in the country you live. These are the main ones:

FBT exemption

Eligible low- or zero-emission vehicles first held and used after 1 July 2022 are exempt from fringe benefits tax (FBT).

This reduces the cost of paying for an eligible EV and covering car running costs through a novated lease by thousands of dollars per year. In some cases, it can make paying for an EV through a novated lease cheaper than paying cash.

EVs and PHEVs valued up to the luxury car tax threshold ($89,332 in FY 2023/24) are eligible for the FBT exemption.

The exemption for PHEVs is due to expire on 1 April 2025.

FBT exemption comparison by Novated Lease Australia

EV (Tesla Model 3 RWD) with FBT exemptionNon-EV (Toyota RAV4 Edge AWD) no FBT exemptionn

Drive away price

$64,814

$62,000

Weekly novated lease cost

$214

$313

Total novated lease tax saving

$38,184

$16,075

* Example calculation is based on a driver in NSW with an annual gross salary of $120,000 driving 15,000km per year. Running costs include: charging/fuel, comprehensive insurance, registration and CPT, servicing and tyres. Pricing is accurate as of 21 December 2023. These examples are for illustrative purposes only based on the assumptions described. Your cost and savings may be different depending on your situation.

0% import tariff

The Federal Government also removed the 5% import tariff on EVs which lowers the up-front cost. Again, this discount applies to vehicles valued up to the luxury car tax threshold.

Higher LCT threshold

The luxury car tax (LCT) is an additional cost for people who buy more expensive cars in Australia. However, the LCT threshold is significantly higher for EVs than it is for non-EVs.

For the 2023/24 financial year, the LCT threshold for EVs was increased to $89,332. The threshold is $76,950 for non-EVs. This means EV owners can buy more expensive cars than non-EV drivers without needing to worry about LCT.

ACT EV incentives

ACT stamp duty exemption

New and used zero-emission vehicles (including motorcycles) are exempt from motor vehicle duty, as are new plug-in hybrid vehicles (PHEVs) and hybrid vehicles (HEVs) purchased or acquired from 1 August 2022.

Used HEVs and PHEVs are exempt if they are purchased or acquired from 1 July 2023.

By contrast, the cost for a vehicle with "average environmental performance" would be $3 for each $100, or part of $100, of the dutiable value of the vehicle for vehicles valued below $45,000. For vehicles valued above $45,000, the cost would be $1,350, plus $5.11 for every $100, or part of $100, of the dutiable value in excess of $45,000.

Free registration for EVs

Owners of new or used zero-emissions vehicles (ZEVs) in the ACT purchased or acquired between 24 May 2021 and 30 June 2024 are eligible for two years of free registration.

From 1 July 2024, the ACT’s vehicle registration fees will begin transitioning to an emissions-based system for most light vehicles. The ACT Government says this will mean lower registration fees for lower-emissions vehicles compared to other vehicle types.

Discounted registration for hybrid vehicles

Owners of plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs) with emissions of no more than 130g/km get a 20% discount on registration fees for up to 12 months for a vehicle first registered before 30 June 2024.

Interest-free loans

Eligible ACT residents can apply for zero-interest loans of between $2,000 and $15,000 to help with the costs of energy-efficient upgrades, including electric vehicles and household battery storage systems.

  • Learn more about the various incentives available via the ACT Government

New South Wales EV incentives

NSW EV rebate (now closed)

The NSW state government EV rebate closed on 31 December 2023. However, if you purchased or placed a deposit on an eligible EV before the closing date, you will still receive the rebate even if your car is delivered to you after that date. The NSW Government says applications can be lodged until 30 June 2024. 

The rebate is $3,000 for battery electric and hydrogen fuel cell vehicles with a dutiable value of less than $68,750. PHEVs are not eligible.

NSW stamp duty exemption (now closed)

Likewise, the NSW stamp duty exemption on eligible EVs ended on 31 December 2023. However, you apply for a stamp duty refund if you purchased or paid a deposit on your eligible vehicle by 31 December 2023, even if it was delivered to you after that date. The cut off date for applying for a stamp duty refund in this scenario is 30 June 2024.

To be eligible for the stamp duty refund, your vehicle must be a new or used battery electric and hydrogen fuel cell light vehicle (under 4.5 tonnes) with a dutiable value of up to $78,000.

Northern Territory EV incentives

Stamp duty waiver

Drivers in the NT will get a stamp duty concession on plug-in electric vehicles (BEVs and PHEVs) valued up to $50,000 from 1 July 2022 to 30 June 2027. This means a possible saving of up to $1,500.

EV registration fee waiver

The NT also offers free registration for new and existing PEVs, including previously registered vehicles, interstate transfers and imported or modified PEVs. That’s a saving of hundreds of dollars per year, depending on the weight of the vehicle.

Electric Vehicle Charger Grants Scheme

The NT Government is offering residential grants of $1,000 and business grants of $2,500 to EV owners who buy and install EV chargers. Grants are being administered on a first-come, first-served basis, with the scheme due to be reviewed in future.

Queensland EV incentives

Queensland Zero Emission Vehicle Rebate Scheme

Rebates of $3,000 or $6,000 are available to eligible Queenslanders and businesses who purchase a new Zero Emission Vehicle (ZEV).

To be eligible for a $6,000 rebate you must have purchased a new eligible ZEV up to the dutiable value of $68,000 (including GST) on or after 21 April 2023 and have a total annual household taxable income of $180,000 or less.

For the $3,000 rebate you must have purchased a new eligible ZEV up to a dutiable value of $68,000 (including GST) on or after 21 April 2023. Businesses are only eligible to apply for the $3,000 rebate.

If you purchased a new eligible ZEV up to the previous dutiable value threshold of $58,000 (including GST) on or after 16 March 2022 and already received an initial ZEV rebate of $3,000, you can apply for an additional $3,000 rebate. This only applies to households with total annual taxable income of $180,000 or less.

Discounted registration duty

Drivers of hybrid or electric vehicles pay the lowest vehicle registration duty rates in the state.

Discounted registration fee

Battery electric vehicles attract the lowest level of registration fee. The registration fee (on all car types) will be frozen in 2024 to help deal with cost-of-living pressures.

The Queensland government says its incentives combined could mean a $12,841.07 saving on a $55,000 EV.

South Australia EV incentives

SA EV subsidy (now closed)

South Australia’s EV subsidy scheme closed on 31 December 2023. However, drivers who entered a binding contract to purchase an eligible vehicle before the closing date but are still awaiting delivery of the vehicle, can still access the subsidy. The subsidy is $3,000 for new battery electric and hydrogen fuel cell vehicles valued below $68,750 (including GST) registered in SA from 28 October 2021. The subsidy is not available on PHEVs or used vehicles.

Registration fee exemption

There's a three-year registration fee exemption in South Australia for new battery electric and hydrogen fuel cell vehicles valued up to $68,750 (inclusive of GST). The exemption is available for new battery electric and hydrogen fuel cell vehicles first registered from 28 October 2021 and up to 30 June 2025.

Tasmania EV incentives

EV rebate

The Tasmanian government is making a total of 375 rebates of $2,000 each available to drivers who purchase a battery electric vehicle being registered in the state for the first time. The scheme will run until the available funds ($750,000 total) are used up. Hybrid vehicles and plug-in hybrids are not eligible.

Interest-free loans for home chargers

Eligible Tasmanian residents can get an interest-free loan of between $500 and $10,000 to install home charging facilities for electric vehicles. These loans are offered through the Energy Saver Loan Scheme and must be repaid over a term of 1-3 years.

Victoria EV incentives

$100 registration fee discount

Light zero and low emission vehicles (ZLEVs) are eligible for a registration discount of up to $100 per year.

Reduced motor vehicle duty rates

A flat rate of vehicle motor duty applies to ‘green’ vehicles. This means EV drivers who buy a high-value vehicle (purchase price above $76,950) will pay less than a driver buying a standard passenger car of the same value.

Western Australia EV incentives

Zero Emission Vehicle (ZEV) Rebate Scheme

Drivers of brand new light zero-emission vehicles (powered solely by batteries or hydrogen fuel cells) are eligible to apply for a $3,500 rebate on their vehicle purchase. Vehicles must have a dutiable value of $70,000 or less to qualify.

The rebate is available for 10,000 eligible vehicles licensed in WA, or until Saturday 10 May 2025, whichever comes first.

Where in Australia can I get the biggest EV incentives?

Looking solely at rebates, which give EV drivers cash back in their pocket, Queensland is leading the charge with a top rebate of $6,000 available. The Sunshine State is followed by Western Australia ($3,500) when it comes to the maximum rebate available, then Tasmania on $2,000.

New South Wales, South Australia and Victoria all previously offered rebate programs which closed in 2023.

Maximum EV rebate available

But the devil is in the detail of most of the EV incentives available. Eligibility and the benefit available varies from state to state and from one form of incentive to another.

For example, if you're buying a more expensive EV, you may save more through a stamp duty exemption and registration discount (usually based on a percentage of the vehicle's value) than a flat cash rebate.

Also consider whether you will ultimately be better off foregoing a state rebate and instead benefitting from the federal FBT exemption on eligible EVs.

EV rebates Australia
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Federal Vs State EV incentives

Novated lease with federal FBT EV incentiveCar loan with State EV rebate

Vehicle purchase price (Tesla Model 3 RWD)

$64,814

$64,814

GST saving on vehicle purchase price

$5,791

$0

Weekly cost (inc. running costs)

$214

$379

Total cost over 5 years

$69,553

$98,520

State government rebate

$0

-$3,000

Net cost

$74,028

$89,239

Difference

-$21,492

* Calculation is based on a driver in NSW with an annual gross salary of $120,000 driving 15,000km per year. Running costs include: electricity, comprehensive insurance, registration and CPT, servicing and tyres. Pricing is accurate as of 21 December 2023. For this example, the car loan interest rate is assumed to be 8.00% p.a. with no loan fees. This is an example for illustrative purposes only based on the assumptions described. Your cost and savings may be different depending on your situation.

Combine federal and state EV incentives for maximum savings

Analysis of available EV incentives by Novated Lease Australia shows that drivers who save the most through EV incentives are those who are eligible for a combination of state and federal schemes.

For example, EV drivers in Western Australia are among the only ones eligible for a rebate from the state government AND the generous federal fringe benefits tax exemption on EVs through a novated lease.

If you're considering an EV, pay close attention to the eligibility criteria for incentives in your state. And remember, in a lot of cases, the fringe benefits tax saving available with a salary sacrifice car agreement will end up saving you far more over multiple years than a one-off state-based rebate or exemption.

If you want to find out how your electric car novated lease (with FBT exemption) could work alongside any potential state-government rebate, our expert consultants can help.

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Written by

Bevan Guest - NLA CEO

CEO

Bevan Guest

Reviewed by

Sean Callery Editor Novated Lease Australia

Editor

Sean Callery

NovatedLeaseAustralia.com.au
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