Queensland has just become the best Australian state to buy an electric vehicle today. The state doubled its prior rebate amount, significantly advancing its position against other states and territories, per the press release.
Queensland raised its EV rebate from $3,000 to $6,000 for households with below $180,000 annual income. Additionally, it increased the eligibility for vehicles from $58,000 to EVs priced below $68,000. All of these rebates fall under the state’s Zero Emission Rebate Scheme.
“We want more zero-emission vehicles on Queensland roads with Queensland families to have access to cheaper and cleaner vehicles.
This is about making EVs more affordable and more accessible to all Queenslanders to slash emissions and act on climate change with cleaner technology. The scheme has already proven popular, and we anticipate this will increase further with the higher threshold and rebate amount.”
Mick de Brenni, Minister for Energy, Renewables, and Hydrogen
Western Australia has the next-best rebate, which is $3500 for the first 10,000 buyers of EVs below $70,000.
Why Queensland raised its EV rebate?
The press release noted three reasons for the recent increase in Queensland’s EV rebate and the max vehicle price it applies to:
- to offer cheaper EVs for hardworking Queenslanders
- to raise rebate qualification and the amount for eligible customers
- to make EVs more accessible
However, it is interesting to note that even if you are not “hardworking,” you can still access the rebate. That said, it is more evident that the move is part of the state’s strategy to achieve its 2036 net zero emissions target.
It is also important to remember that individuals can only receive one EV rebate in their lives. Meanwhile, businesses can receive up to five rebates per financial year.
To access the EV rebate, you must have a valid Queensland license, residence, and proof of purchase. Furthermore, the EV must be a brand-new car with zero emissions purchased (not leased) after March 16, 2022. That said, used and leased EVs and other EV categories apart from cars under 4.5 tonnes do not qualify for the EV rebate.
Despite the good amount of rebate, some customers with over $25,000 income can save more by leasing to access the EV Fringe Benefits Tax Exemption. However, it can only be used through a business, either one you work for or one you own. It is impossible to double up and get the Queensland EV refund because this can only be done through a lease.
Australia has lagged in EV adoption
Australia has lagged behind other countries in electric vehicle adoption due to many factors, such as the following:
- lack of emissions standards for vehicles
- lack of taxes
- high prices
However, the report claims Queensland currently offers the best incentives among the Australian states. It is one of the best states in the nation not just to buy but also to keep running an EV because of an outstanding array of tax benefits, discounts, and public infrastructure investments.
In contrast, Victoria may be the least progressive state in EV adoption due to its road user tax despite just under 1% of its population owning an EV.
Federal
The Labor government is now receiving submissions for a National Electric Vehicle Strategy. The Driving the Nation Fund will receive $275.4 million from the federal government over a six-year period. These initiatives are part of the country’s attempts to offer cheaper and cleaner transportation.
The Australian Renewable Energy Agency will receive $146.1 million over a five-year period. This amount will fund initiatives to lower emissions in the transportation industry. Meanwhile, the Hydrogen Highways project will get $89.5 million over six years. This project will facilitate the construction of hydrogen refueling stations in the country. In addition, the National Electric Vehicle Charging Network will get $39.8 million over the next five years. It plans to construct 117 rapid charging stations on major Australian motorways in collaboration with the NRMA.
In its October 2022 budget, Labor also unveiled Australia’s first federal tax incentives for EV adoption. It claims that some battery, hydrogen fuel cell, and plug-in hybrid electric cars are exempt from the fringe benefits tax and import duties. Only cars acquired after July 1, 2022, will be eligible. They must also fall under the Luxury Car Tax threshold for fuel-efficient vehicles, now $84,916.
Below are the current EV initiatives in Australia per state:
| States | Tax breaks | Rebates or discounts | Road user charges | Public infrastructure investment | Government fleets and investment |
|---|---|---|---|---|---|
| New South Wales | No stamp duty for EVs that cost under $78,000; and Other EVs and PHEVs will also receive this in 2027 or when low-emissions new vehicle sales hit 30%. | $3,000 rebate for EVs under $68,750. This is available for the first 25,000 purchases. | None for now, but it’s looking to follow in Victoria’s footsteps from 2027: 2.5c/km for EVs and 2c/km for PHEVs, indexed annually. This timeframe will be brought forward if low-emissions new vehicle sales hit 30% before then. | $171 million has been pledged for a state charging network; and EVs can continue using transit lanes across the state until October 2023. | All government fleet vehicles to be EVs by 2030. |
| ACT | No stamp duty on EVs, hybrids and ICE vehicles that have under 130g CO2/km. | $15,000 interest-free loans for ‘eligible households’ under the Sustainable Household Scheme; Free rego for two years on new EVs; and 20% ongoing rego discount on EVs purchased before May 1, 2021. | None | $1.4 million grant to bolster the ACT’s current 30 public chargers to 150 across 77 charging stations. | All new government fleet vehicles are EVs (with some exceptions). |
| Victoria | No luxury car duty tax. | $3000 rebate for EVs under $68,750. This is available for the first 4,000 purchases in its first round but 20,000 rebates will be offered in total. | 2.5c/km for EVs indexed annually; and 2c/km for PHEVs indexed annually. | $19 million to accelerate chargers across regional Victoria; and $20 million for public ZEV bus trial. | $10 million to replace 400 fleet vehicles with ZEVs. |
| Queensland | Stamp duty reduction on EVs and PHEVs: 2% stamp duty on vehicles up to $100,000 and 4% above that. | $6000 rebate for individuals and businesses on EVs under $68,000. | None | A $10 million government and industry co-fund for more public chargers across the state; and 24 new fast-charging locations to link more rural and regional areas to the ‘Queensland Electric Superhighway’. | 100% zero-emission fleet by 2026. |
| South Australia | None | $3000 rebate on EVs under $68,750. This will only be available to the first 7,000 buyers; and Three-year rego exemption for EVs and hydrogen fuel cell cars until June 30, 2025. | None | A state-wide charging network is in the works for 2025. | Government fleet to be fully EV or PHEV by 2030. |
| Western Australia | None | $3500 rebate on EVs under $70,000. This will only be available to the first 10,000 buyers. | None until 2027 | Plans for a charging network between Perth and Kununurra, Esperance and Kalgoorlie. | 25% EV target for government fleets by 2026. |
| Tasmania | No stamp duty on EVs until July 2023. | None | None | $50,000 grants for public DC chargers; $2500 grants for public AC destination chargers; and ChargeSmart Program has delivered $600,000 in grants for fast, destination and workplace chargers. | 100% government EV fleet by 2030. |
| Northern Territory | $1500 stamp duty discount on new and used EVs between July 2022-July 2027. But they have to cost under $50,000. | Free rego between July 2022-July 2027; and Electric Vehicle Charger (Residential and Business) Grants Scheme provides 100 residential grants for $1,000 and 80 business grants for $2,500 for charger installation. A total of $300,000 has been committed. | None | Nothing solid at the moment | 400 chargers being installed in government buildings |
See Also:
- Chinese-made MGs are now part of Queensland’s police fleet
- Queensland targets 100% EV Fleet
- Sunshine State Queensland to boost electric vehicle uptake
- Light EV fleet surged to 83,000 units in Australia in 2022; BEVs accounted for 79%
- Australia is expected to hit the 100,000 EV milestone, per research
If you are residing in Queensland with plans to buy an EV, you must take advantage of it while it lasts. The EV rebate will receive $45 million from the Queensland government. As of this writing, 1,135 refunds have already been used.
There are only $38 million left if they are all given the maximum of $6,000 each. That said, the discount might only be available for a few more years as EV purchases are rising quickly.
The Fringe Benefits Tax Exemption will likely be used a lot instead, which could extend the supply, but I wouldn’t count on it lasting very long.
You can check Queensland Government’s website for more details.
