Electric vehicle incentives: Australia-wide and in WA
Electric vehicles (EVs) are becoming a popular choice for many drivers, but while EV purchases have risen steadily across Australia, EVs made up only around 3% of new car sales in 2022. Here in WA, EV purchases made up around 5.5% of these sales for 2022.
Around the world, government grants for EVs and electric car incentives are being offered in order to help combat vehicle related carbon emissions. Some countries offer an electric car rebate on the purchase price of eligible EVs, while other countries are encouraging more drivers to make the switch by making changes to electric car taxes or offering rebates for EV smart chargers at home.
A number of electric vehicle incentives in Australia are available as the Federal and State Governments work towards their carbon reduction targets. Here’s our guide to what EV rebates and EV incentives are currently on offer.
EV rebates and EV incentives in Australia
In November 2022, the Treasury Laws Amendment (Electric Car Discount) Act 2022 (Cth) passed through the Federal Parliament. This provides Fringe Benefits Tax exemptions for eligible low or zero emission business vehicles that are first held and used on or after 1 July 2022. Other criteria apply and for more information you can visit the Australian Tax Office website and seek professional tax advice.
In announcing the passage of the Act, the Federal Government stated that this could translate into savings of around $9000 per annum for an employer, or $4700 for an individual with a salary sacrifice agreement for a $50k electric vehicle.*
The Luxury Car Tax threshold for eligible fuel-efficient vehicles is currently $89,332 to encourage EV purchases in Australia’s luxury car market. The Act also removed the 5% import tariff helping to make eligible electric vehicles more affordable.
EV incentives for charging
As many EV drivers may tell you, one of the financial benefits of driving an EV can be the fuel cost savings. The cost to charge an EV is generally much less than filling a petrol tank, especially if you have a fully electric BEV that has no need for petrol or diesel.
Fast charging can make EV ownership even more appealing and has attracted investment from the Federal Government. The Australian Renewable Energy Agency (ARENA) runs the Future Fuels Fund, part of the Federal Government’s funding of EV infrastructure. The first round of investment involved $24.5 million towards 400 public fast-charging stations within the private sector.
In the 2022/23 Federal Budget, Labor announced the $500 million Driving The Nation Fund. This is intended to see an extra 117 EV charging stations and hydrogen refuelling stations installed across Australia.
The Federal Government is working towards net-zero carbon emissions by 2050 and a 43% reduction in CO2 levels by 2030. As part of this commitment, the Federal Government has stated that it is committed to ensuring 75 per cent of new Commonwealth fleet purchases are electric by 2025.*
Does the WA Government offer electric car incentives too?
Here in WA, the State Government currently offers the Zero Emission Vehicle (ZEV) Rebate.^ This EV rebate is part of the WA Government's Clean Energy Car Fund and is a financial incentive to encourage the purchase of ZEVs. These are EVs powered only by batteries or hydrogen fuel cells which don’t emit greenhouse gases. The ZEV Rebate doesn’t apply to hybrids or plug-in hybrids, since these also include an internal combustion engine and emit greenhouse gases.
The ZEV Rebate is a $3,500 payment which is transferred by electronic funds transfer to a nominated bank account once you have bought an eligible EV, completed the vehicle registration process and submitted an application form to the Department of Transport.^
The ZEV Rebate is available for 10,000 eligible vehicle registrations in WA – or until 10 May 2025 – whichever comes first.^
Working towards a target of net zero by 2050, the WA Government aims to have EVs make up a minimum of 25% of their new light and small passenger, and small and medium SUV government fleet by 2025/26, not including police vehicles or vehicles that attract fringe benefits tax.
Expansion of the WA EV charging network
Having the right charging infrastructure in place is an important step in encouraging EV purchases. With more charging infrastructure in place, it’s hoped that it will be even easier for drivers to make the decision to switch to an EV and join WA’s EV community.
To support EV drivers to charge their EV in WA, Synergy is working with Horizon Power and the WA Government to add 98 public EV charging stations across 49 locations in the State, from Eucla at the South Australian border to Kununurra in our state’s far north.
This initiative, known as the WA EV Network, is part of the State Government's Electric Vehicle Action Plan and aims to boost EV uptake in WA to help reach the Government’s net zero target by 2050.
The future of EVs in WA
Purchasing an EV as your next car can represent a big change to the way that you drive and use your car, so it pays to do your research! Learn more about EVs in Australia and why you should consider making the switch.
* See The Hon. Dr Jim Chalmers, Treasurer, Media Release on 28 November 2022 - Tax cut for electric vehicles passes Parliament | Treasury Ministers
^ The Zero Emission Vehicle (ZEV) Rebate Scheme is a financial incentive to encourage the purchase of eligible zero emission vehicles as part of the State Government's Clean Energy Car Fund. Other eligibility criteria may apply. For more information visit Zero Emission Vehicle (ZEV) Rebate (transport.wa.gov.au).
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