EV Incentives Australia 2026 (State-By-State Guide)

Federal EV incentives (Australia-wide)

Incentives for EV drivers are not quite as plentiful as they were a few years ago. But there are still major cost savings available in 2026 for drivers who choose an EV, both through federal incentives and those administered at the state or territory level.

The most significant savings for EV buyers in 2026 come from federal policies that apply regardless of which state you live in.

FBT exemption

Eligible zero-emission vehicles (BEVs) and hydrogen fuel cell vehicles (FCEVs) remain exempt from Fringe Benefits Tax (FBT) when provided through a novated lease. This can save drivers up to $11,000 per year in tax. Note: As of April 1, 2025, Plug-in Hybrids (PHEVs) are no longer eligible for this exemption unless they were under a pre-existing lease agreement.

Higher LCT threshold

For the 2026/27 financial year, the LCT threshold for fuel-efficient vehicles is $91,661, compared to $80,809 for other vehicles. This allows you to purchase a higher-spec EV without incurring the 33% luxury tax.

0% import tariff

The 5% customs duty remains waived for eligible electric vehicles valued below the LCT threshold, reducing the upfront "drive-away" price.

FBT exemption comparison by Novated Lease Australia

	EV (Tesla Model 3 RWD) with FBT exemption	Non-EV (Toyota RAV4 XSE) no FBT exemption
Drive away price	$59,814	$63,849
Weekly novated lease cost	$205	$327
Total novated lease tax saving	$33,072	$15,020
*Example calculation is based on a driver in NSW with an annual gross salary of $1020,000 driving 15,000km per year. Running costs include: charging/fuel, comprehensive insurance, registration and CPT, servicing and tyres. Pricing is accurate as of March 2026. These examples are for illustrative purposes only based on the assumptions described. Your cost and savings may be different depending on your situation.

ACT EV incentives

Lower Motor Vehicle (Stamp) Duty Rate

Low-emission vehicles (including motorcycles and commercial vehicles) are eligible for reduced motor vehicle duty rates based on the vehicle’s Combined tailpipe C02 emissions.

For example, the duty on an EV with zero tailpipe emissions valued at $60,000 would be $1,725, versus $2,269.50 for a car of the same value with roughly the average emission levels for a new car in Australia (181 grams of CO2 per kilometre). That’s a $544.50 saving.

Reduced Registration for EVs

Owners of new or used low-emissions vehicles in the ACT enjoy cheaper car registration under the territory’s transition to emissions-based registration fees. According to the ACT Government, this could mean an annual saving of hundreds of dollars for lower-emission vehicles (applies to all engine types, not just EVs) compared to the cost under the old weight-based registration model.

Sustainable Household Scheme

Eligible residents can access 3% low-interest loans (previously 0%) of $2,000 to $15,000 for the purchase of new or used EVs and charging infrastructure.

New South Wales EV incentives

Lower Registration

ZEVs and low-emission vehicles receive a concessional rate on registration. Because these costs are packaged into your lease, the lower fee reduces your weekly pre-tax deduction.

Note: The $3,000 purchase rebate and stamp duty exemptions for individual purchases ended on December 31, 2023.

Northern Territory EV incentives

Free Registration

The NT Government has extended the waiver for registration fees for new and existing BEVs and PHEVs until June 30, 2027. This zero-cost registration is a major benefit when bundled into a novated lease.

Stamp Duty Concession

A stamp duty concession of up to $1,500 is available for EVs valued up to $50,000.

Queensland EV incentives

Lower Registration

EV registration remains the cheapest in the state (equivalent to a 1-3 cylinder vehicle), roughly $293/year. These savings are passed directly to you through your packaged running costs.

Concessional Stamp Duty

EVs incur a lower stamp duty rate of just 2% for values up to $100,000, reducing the total lease value.

Note: The $6,000 ZEV Rebate Scheme officially closed on September 2, 2024. This was previously the most generous state-based EV incentive in the country.

South Australia EV incentives

Registration Exemption

A 3-year registration fee exemption was available for new BEVs/FCEVs first registered before June 30, 2025. For leases established after this date, standard registration rates generally apply.

Note: The $3,000 purchase subsidy ended on December 31, 2024.

Tasmania EV incentives

Stamp Duty & Rebates

Tasmania’s $2,000 rebate and stamp duty waivers have concluded and there are currently no specific EV invenctives offered by the Tasmanian government

Victoria EV incentives

Stamp Duty Concession

EVs are exempt from the state's higher rate of motor vehicle duty that applies to ‘luxury’ passenger vehicles. Instead green vehicles are subject to pay a flat concessional stamp duty rate of $8.40 per $200 of the full market value.

ZLEV Road User Charge

Following the 2023 High Court ruling, the per-kilometre road user charge for EVs has been abolished. You no longer need to budget for this in your lease running costs.

Registration Discount

The $100 annual registration discount ended on January 1, 2026.

Western Australia EV incentives

ZEV Rebate

The $3,500 rebate for new EVs under $70,000 officially ended on May 10, 2025.

Combining federal and state EV incentives for maximum savings

Despite the drop-off in EV incentives available at the state level, drivers can still enjoy significant savings with an EV versus a similarly-priced petrol or diesel car, particularly given the incentives can be bundled.

For example, drivers who salary sacrifice their car to take advantage of the federal FBT exemption on eligible EV novated leases can typically also benefit from any state-based stamp duty and registration discounts (if available where they live) to maximise their savings.

EV drivers can also consider related incentives, such as the Cheaper Home Batteries Program. This offers a discount of around 30% on the upfront cost of installing small-scale battery systems (5 kWh to 100 kWh).