SA officially ditches proposed ‘EV tax’ for drivers

The plan for a controversial Electric Vehicle (EV) tax for South Australian road users has officially been ditched by the state government.

The Electric Vehicle Levy, which was first proposed in 2020, would have seen EV owners charged 2.5 cents per kilometre driven each financial year. Similar to the tax imposed in Victoria in 2021, this was claimed to form a substitute for the federal fuel excise on these vehicles.

If enacted, the levy would have been implemented from July 1, 2027 or when EV purchases made up 30% of new car sales in the state – whichever occurred first.

A change in legislation however, has since seen this charge abolished, with the state government citing it as a means to better support the uptake of electric vehicles.

SA Minister for Transport and Infrastructure Tom Koutsantonis said repealing the tax meant motorists had more certainty around the cost of becoming an EV owner.

“South Australians should be encouraged to make environmentally-responsible choices, not met with new barriers,” he said. “This backwards-thinking tax was another betrayal of the Liberals’ low-taxing rhetoric, as well as a betrayal of the pursuit of Clean Energy solutions.

“South Australians want to see their State Government incentivising the take-up of electric vehicles, not slugging users with extra costs. With the passage of this legislation through parliament, the Liberals’ EV Tax betrayal is over.”

A repeal of the levy was introduced in May 2022 by the now Labour government but public scrutiny had also seen a delay in its initiation date – from July 1 2022 to July 1 2027 – prior to this.

According to a survey conducted by the Australia Institute – a research think tank – in 2021, seven out of 10 South Australians said they would have been less likely to purchase an EV if the road user charge had been implemented in the state.

Compare Cheap Electricity Deals in SA

So, what does owning an EV look like now in SA?

Motorists interested in making the switch to an electric vehicle in SA can still benefit from the state government’s EV subsidy and three-year registration exemption. Through the subsidy, motorists can earn a $3,000 discount off their new battery electric or hydrogen fuel cell vehicle purchase, granted it’s valued under $68,750, including GST.

As for the three-year registration fee exemption, this is available on new battery electric and hydrogen fuel cell vehicles registered between October 28, 2021 and June 30, 2025.

There are currently 6,400 electric vehicle subsidies remaining in SA. There is no apparent cap however, on the number of vehicles eligible for registration exemption.

For the full terms and conditions regarding these subsidies, it is best to visit the South Australian government’s website.

Already driving an EV? You could benefit from an EV electricity plan

A select few retailers in the market currently offer EV-specific power plans to customers who also own an EV and charge it from their residential property. These plans generally offer incentives to help offset the costs of charging from home, through the use of bill credits or designated charging hours. One prominent retailer in this space is AGL. We’ve listed its pricing information below.

AGL Electric Vehicle Plan

Image credit: l i g h t p o e t/Shutterstock.com