NSW will provide a $3,000 rebate and slash stamp duty for EVs
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Australia’s automotive retailing industry has welcomed a NSW Government pledge to waive stamp duty on electric vehicles (EVs) under $78,000 and provide rebates of $3,000 on eligible purchases, describing the state’s $490 million package as the most significant EV policy reform in decades.
On Sunday, NSW Treasurer Dominic Perrottet revealed the state will reduce upfront costs for consumers by cutting stamp duty on eligible electric and hydrogen fuel cell vehicles, saving consumers as much as $3,000 in extra costs.
Popular models like Tesla’s Model 3 Long Range, priced at $77,900, sneak under the threshold.
A separate rebate of $3,000 will apply to the first 25,000 EVs sold under $68,750.
The measures, which come into play September 21, were designed to increase uptake ahead of 2030, when NSW hopes EV sales will constitute 52% of all new car sales.
Those consumer-focused efforts come as part of a broader support package for the industry, which includes a $171 million investment in charging facilities, a pledge to transition government fleet vehicles to EVs by 2030, and a promise to let EV drivers use transit lanes.
But the changes will be followed by a new on-road charges, which will slug EV drivers 2.5 cents per kilometre.
The measure is designed to fill the gap left by the fuel excise, much of which goes towards road maintenance and repair.
Those on-road costs will come into play from 2027, or when EVs make up more than 30% of all new car sales. Once the new charges are implemented, NSW will abolish stamp duty for all new electric and hybrid-powered vehicles.
The state’s new approach to taxation and incentives represents “the most significant steps we have seen in decades,” said Tony Weber, chief executive of the Federal Chamber of Automotive Industries (FCAI).
“The incentives package for electric vehicles is consistent with actions being taken by forward thinking governments across the world,” he added.
The Electric Vehicles Council, which joined Perrottet during Sunday’s announcement, described the incentives as “game-changing” and praised the decision to delay on-road taxes by six years.
NSW’s new EV support package comes two months after the Victorian Government announced subsidies of $3,000 for 20,000 EVs under $68,740, part of the state’s own $100 million push to increase uptake.
But the Victorian Government faced criticism for revealing its own on-road tax before its incentives, causing EV advocates to question the state’s approach to EV uptake.
The FCAI, which represents car dealers across the nation, has called for Canberra to enshrine a national EV policies and a uniform approach to on-road taxes.
“Consistency is the critical element for Australian customers,” Weber said. “If other states introduce their own programs, they must align.”