Victoria to kill off $3,000 electric vehicle subsidy

A major incentive for Victorians to purchase electric vehicles is about to be scrapped, with the state’s $3,000 subsidy now ending a year earlier than originally promised.

The Victorian Government is scrapping its Zero Emissions Vehicle Subsidy, which offered up to 20,000 electric vehicle (EV) subsidies to residents. While thousands of Victorians have already taken advantage of the subsidy – which gives buyers a $3,000 discount on the purchase cost of eligible electric cars – financial support has officially been cut for the program, as per the government’s May budget.

This means that Victorians considering making the switch to an EV have until 6pm on June 30, 2023 to apply for the rebate, with 2,742 subsidies still available as of June 9.

Although Victoria is pulling the rug on rebates, the state’s $100 discount on electric vehicle registrations is still in effect. However, this may be little consolation for residents who expected to have an extra year to make a subsidised EV purchase.

Is Victoria failing electric vehicle buyers?

It’s a tough blow for prospective Victorian EV owners, who have already been discouraged from jumping to a zero-emissions vehicle thanks to the state’s controversial road tax. 

VicRoads charges electric and plug-in hybrid vehicle owners a per-kilometre rate for the use of the state’s main roads. As of July 2022, electric vehicles and hydrogen vehicles pay 2.6 cents per kilometre, while plug-in hybrid electric vehicles are charged 2.1 cents per kilometre.

The tax is designed to replace the Commonwealth fuel excise and contributes to the maintenance of Victorian road infrastructure, but is currently facing a High Court challenge from furious EV owners who argue the charges are unconstitutional.

What is Victoria’s Zero-Emissions Vehicle Subsidy?

First announced in 2021, the Zero-Emissions Vehicle Subsidy is a $3,000 rebate offered on eligible electric vehicle purchases from participating retailers. The subsidy is part of the Victorian Government’s Zero Emissions Vehicle Roadmap, which aims for EVs to account for half of all light vehicle sales in the state by 2030.

The program is open to all individual residents in Victoria with a Victorian driver’s licence, as well as businesses with registered offices in Victoria. Individuals can claim $3,000 off the retail cost of one eligible new EV purchased on or after May 2, 2021, through to the scheme’s expiry on June 30, 2023.

Eligible vehicles must have a purchase price of $68,740 or less, including GST, dealer delivery fees, and any manufacturer or dealership add-ons. The price cap does not include stamp duty, registration or compulsory third-party insurance costs.

EV buyers can access the subsidy by purchasing their car from a participating dealer, who will apply for the rebate on your behalf at the point of sale. If the eligibility criteria are met, you’ll be given a $3,000 discount on your final vehicle payment.

EV electricity plans

Some energy retailers offer specialised electricity plans to customers who own EVs. Below, you’ll find the pricing details for plans in your state from AGL, Red Energy and OVO Energy.

Do other states still offer electric vehicle subsidies?

While things are grim for Victorian residents, EV rebates and incentives are still on the table across other states and territories. Queenslanders receive the biggest benefits by far, with the state’s government recently doubling EV rates to $6,000 per eligible household.

A $3,000 rebate is also available in New South Wales and South Australia, while Western Australia offers $3,500. Here’s the major incentives available in each state.

New South Wales

• $3,000 rebate on new electric vehicle purchases under $68,750 (first 25,000 EVs)
• Stamp duty exemption for EVs less than $78,000
• Eligible EVs can use T2 and T3 transit lanes across NSW

Queensland

• $6,000 rebate on new electric vehicle purchases under $68,000
• Lower stamp duty rates
• Lower vehicle registration costs

South Australia

• First 7,000 EVs sold will get a rebate worth $3,000 (vehicle price capped at $68,750)
• EVs worth less than $78,000 are exempt from registration costs for three years
• Up to $2,000 rebate for the first 7,500 households that install a home EV smart charger

Australian Capital Territory

• $15,000 interest-free loan to purchase a zero-emissions vehicle available to households (purchase threshold of $77,565)
• Full stamp duty exemption on zero emissions vehicles
• Free registration for two years for EVs purchased in the ACT before June 30, 2024
• 20% off registration fees for older EVs

Tasmania

• EV owners who rent out their car through share programs receive a $1,000 grant
• Car rental firms and coach operators get two-year waiver on EV purchases and registration
• Free stamp duty for two years on EVs

Northern Territory

• Reduced registration fees over a five-year period
• $1,500 subsidy on stamp duty over five years

Western Australia

• First 10,000 EVs sold under $70,000 will receive a $3,500 rebate
• Exemption from the 10% on-demand transport levy