Electric Vehicle (EV) Policies of Australia

Australia’s approach to electric vehicle (EV) policy is embodied in its National Electric Vehicle Strategy, which aims to:

• increase the supply of affordable and accessible EVs
• establish the resources, systems, and infrastructure to enable rapid EV uptake
• encourage increased EV demand.

There are several policies and initiatives to promote EV transition, to learn more about the National EV Strategy, click here. But here are some key aspects of Australia’s EV policy:

Demand incentives

To increase EV demand, the Australian government offers several financial incentives to make EVs more affordable, including:

• The Fringe benefits tax (FBT) exemption allows employers not to pay FBT on eligible EVs that they provide to an employee as part of their salary package. The employer can provide an EV to an employee that is valued at up to $43,359 along with its associated car expenses. This exemption was introduced in July 2022 and is designed to encourage the uptake of EVs by making them more affordable for businesses and employees as they will not have to pay tax on the value of the vehicle. To know the eligibility criteria, conditions, and the inclusion of the other expenses, visit the AU Taxation Office page.
  • FBT exemption applies for eligible EVs first used on or after July 1, 2022.
  • Eligible plug-in hybrid electric vehicles (PHEVs) will also be exempt from FBT when provided under agreements entered into before April 1, 2025.
  • Complementing the FBT exemption is the removal of the five percent import tariff on eligible EVs, a measure that further enhances the affordability and accessibility of EVs under the National EV Strategy.
• Luxury car tax (LCT) exemption applies to several EVs. To know if your EV is exempted from LCT, it must be below the LCT threshold for fuel efficient vehicles at the time it was first sold in a retail sale or any subsequent sale. For second-hand EV purchases, you need to know if it was subject to LCT at any time in the past. To know EVs that are exempted from LCT, you may read this article and refer to this calculation from the Australian Taxation Office.
• Several Australian states and territories have implemented incentives and direct sales rebates to encourage the purchase of electric vehicles, to learn more about this, refer to Electric Car Discount Bill.These incentives vary by state and territory including financial incentives, reduced registration fees, and exemptions from stamp duty.
• The Clean Energy Finance Corporation (CEFC) introduced a Clean Green Cars program to provide lower interest rates and favorable loan terms for EV purchases. For more information about this scheme, click here.

Supply-side incentives

• As part of the National EV strategy, it aims to establish the necessary resources and systems to support the widespread adoption of EVs. This includes the implementation of a nationwide network of fast chargers and the empowerment of the EV workforce through targeted training and upskilling programs.
• As of 2023, the Australian government is developing the ‘Fuel efficiency standards’ which will serve as a powerful incentive for vehicle manufacturers to develop and introduce a wider range of fuel-efficient vehicles that includes electric vehicles and hybrid electric vehicles (HEVs), into the Australian market. 
• It encourages the development and adoption of innovative technologies that reduce a vehicle’s overall carbon dioxide (CO2) emissions, some major markets have incorporated ‘off-cycle credits’ to provide credits to manufacturers with approved technologies that reduce the vehicle’s overall CO2 emissions
• To learn more, read the Fuel Efficiency Standards consultation paper 2023.

Charging infrastructure

• The Australian government in support of the development of a more extensive EV charging infrastructure network across the country provided a $500 million investment for electric vehicle charging infrastructure in 2023 from the Driving the Nation Fund. 
• It encompasses funding for public charging stations and fast charging points compatible with all EVs. For more information and grant application, visit Turbo charging electric vehicle (EV) infrastructure. 
• To check on the existing fast charging stations, view this map.

Battery development

• The National Battery Strategy aims to capitalize on Australia’s prominent position in mining and mineral processing to seize a share of the lithium-ion industry, which is projected to expand by up to 22 times, as outlined in the government’s issues paper published in February 2023.
• It also includes the funds and activities of the domestic battery industry in each state on page 6 of the National Battery Strategy. 
• To promote the development and manufacturing of batteries in Australia, the Australian government initiated an Australian Made Batteries Plan which aims to create jobs, boost the economy, and support the transition to a clean energy future. The plan has key components:
  • $100 million fund to establish a battery manufacturing precinct in Queensland which will be a large-scale manufacturer of batteries and other components
  • $14 million fund to establish a Powering Australia Industry Growth Centre which can support businesses that are developing and manufacturing batteries and battery components.
• In support of battery recycling, a funded project in Victoria started a reuse and recycling program for retired lithium-ion batteries from electric vehicles, to learn more, click here.

Other Policy 

• Australia is actively developing and implementing Vehicle Emissions Standards to promote the import and sale of cleaner and more fuel-efficient vehicles, including electric and hybrid cars.
• Fleet Electrification:
  • The Australian government is actively exploring strategies to electrify its vehicle fleet. Committed to 75% of Commonwealth fleet purchases are EVs by 2025 with the help of the Electric Car Discount Bill 2022.
  • The Origin Accelerate EV Fleet Program part-funded by the Australian Renewable Energy Agency (ARENA), will lease 1,000 passenger BEVs and 1,000 smart chargers to businesses across the country until 31^st of January 2025. To learn more, click the ARENA page.
  • ‘Charging as a Service’ is another initiative funded by ARENA to expand charging infrastructure from JET Charge company which aims to install aims to install 3,160 chargers at workplaces and customers’ homes. To learn more, click the ARENA page for JET Charge.
• Public Transport Electrification:  Pioneering a greener transportation future, several Australian cities are actively implementing electric buses and trams into their public transportation systems to reduce emissions and improve urban air quality. For more information regarding electric bus policy, you may read this paper or visit the state’s initiative such as NSW, ACT, Victoria, WA, Queensland, NT, Victoria

State-Level Initiatives

Several state and territory governments have also implemented their policies to accelerate the adoption of electric vehicles. These policies vary in scope and approach, but they all share the common goal of the National Electric Vehicle Strategy.

• According to the Electric Car Discount Bill, ACT is offering interest free loans of up to $15,000 for EV purchases, to know more about ACT incentives, click here. Moreover, there are direct incentives such as $3,000 rebates available per state and territory for the first number of EVs sold:
  • 25,000 cars in New South Wales
  • 15,000 cars in Queensland 
  • 7,000 cars in South Australia
  • 4,000 cars in Victoria

Note: Please refer to the government webpage below for more information.

• There is also a Zero Emission Vehicle (ZEV) Rebate scheme which encourages ZEV purchases as part of the Government’s Clean Energy Car Fund. It provides rebates for the purchase of new ZEVs, including BEV, PHEV, and FCEV. The rebate amount varies depending on the type of vehicle and the state or territory in which it is purchased.
  • A $3,500 rebate will be available for ZEV in Western Australia for the 10,000 eligible EVs for the first three years following the announcement on the 10^th of May 2025. To know the eligibility criteria and FAQs, visit the WA Department of Transport page.
  • ZEV Rebate in Queensland is up to $6,000, to know more about its eligibility criteria, click here.
  • ZEV subsidy for Victoria is closed to new applications. Click here to learn about the program.
• EV registration fees and exemptions from stamp duty vary in different states and territories of Australia:
  • A free registration for ZEV in ACT. To know more about this, refer to this government site.
  • EV purchased registered from 1 September 2021 in New South Wales are exempted from stamp duty but it will end on January 1^st of 2024. To know more about the application process and guidelines, click NSW. 
  • Registration and stamp duty concessions for electric vehicles in the Northern Territory
  • A 3-year registration exemption is offered for eligible new BEV and hydrogen fuel cell vehicles registered from October 28, 2021, until June 30, 2025. For more information, click SA.
  • In Victoria, Zero Low Emission Vehicles (ZLEV) are offered with a registration fee discount of up to 100$ per year. Learn more from here.
  • For Queensland registration fees for EVs, refer to this guide.
  • For Tasmania registration fees for EVs, refer to this guide.

• To encourage demand for EVs, incentives vary by state and territory such as EV subsidies, interest-free loans, registration exemptions, stamp duty exemptions, luxury car tax exemptions, and discounted parking for both private and commercial EV purchases. To learn more about this, refer to the National EV Strategy on page 31 and Appendix B for detailed State and Territory actions on page 38. You may also visit the government sites below for more updated information.

South Australia, Queensland, Western Australia, New South Wales, Victoria, Australian Capital Territory, Northern Territory, Tasmania

As part of the Australian Government Initiative, the government produced the Green Vehicle Guide that includes necessary information such as EV benefits from different states and territories.

Given the variation in policies and incentives related to electric vehicles across Australia’s states and territories, it is advisable to consult the relevant government websites and electric vehicle advocacy organizations for detailed information and incentives applicable to your specific region.

For inquiries, you may email the Electric Vehicle Council at [email protected] or call +61 292 214 030