EV incentives in Australia

Top Australian States for the Best EV Incentives

In 2023 alone, the sale of new EVs in Australia exceeded 87,000 units, with projections indicating that the industry will surpass the significant milestone of 100,000 vehicles this year. This remarkable growth can be attributed to the introducing of new EV models and a robust consumer demand for affordable electric cars. This trend has intensified competition within the automotive market, catalyzed by government incentives.

However, while some regions are scaling back on these incentives, others are moving in the opposite direction by bolstering demand through substantial subsidies and incentives, such as reductions in stamp duties and registration fees.

Here, the question remains: Which Australian states offer the best EV Incentives? And here is the answer for the best states with the best EV incentives:

In the Australian Capital Territory (ACT), a range of incentives awaits EV drivers, including reduced registration fees and interest-free loans. Currently, drivers in the ACT enjoy a waiver of registration fees for up to two years upon purchasing an EV. However, starting July 1 2024, the ACT plans to transition to an emission-based registration system. This initiative aims to offer reduced registration fees to EV drivers in the territory, further incentivizing electric vehicle adoption.

To gauge which Australian state has EV incentives, we have conducted an in-depth analysis of each jurisdiction to provide an up-to-date overview of the current landscape.

Let’s have a look!

States with Best EV Incentives in Australia

1. Federal Government Initiatives

The Australian federal government introduced its National Electric Vehicle Strategy in April 2023, outlining a comprehensive set of policies to boost EV adoption and reduce emissions nationwide.

Australia’s federal government currently offers a specific incentive related to vehicle emissions. If a vehicle’s emissions fall below a certain threshold, it is categorized as a luxury vehicle once its price exceeds a higher threshold. For 2021-2022, fuel-efficient cars like electric vehicles (EVs) must be priced at $79,659 to benefit from this incentive, given the price threshold difference of $10,507. Under the luxury car tax, every dollar exceeding this limit incurs a fee of $0.33, allowing high-end EVs to save up to $3,467.

New Vehicle Efficiency Standard (NVES)

A vital component of the strategy is the implementation of the New Vehicle Efficiency Standard (NVES), set to commence on January 1, 2025. This initiative will incentivize automakers to accelerate the introduction of EV models to the Australian market, fostering increased competition expected to drive down prices.

Fringe Benefits Tax (FBT) Exemption

Under the federal government’s measures, EVs and plug-in hybrids below the luxury car tax threshold for fuel-efficient vehicles are exempt from fringe benefits tax (FBT). This exemption has proven advantageous to many Australians, particularly those acquiring vehicles through novated leases, potentially resulting in substantial savings.

Investment in EV Charging Infrastructure

Additionally, successive federal administrations have allocated over $80 million to establish public EV fast-charging stations across Australia. This investment aims to enhance infrastructure support for EV owners and encourage further uptake of electric vehicles nationwide.

2. Australian Capital Territory (ACT) Incentives

The ACT has been proactive in its approach to electric vehicles (EVs), initiating its EV strategy as early as 2018.

The Australian Capital Territory (ACT) offers several incentives for purchasing zero-emission vehicles (ZEVs). These incentives include a stamp duty exemption on new ZEVs and two years of free registration. Additionally, ACT households can apply for a zero-interest loan ranging from $2,000 to $15,000 to cover the cost of EV charging infrastructure. Furthermore, as part of the ACT Budget 2020-2021 commitments, the government has pledged to install 50 public charging stations across the territory.

Ambitious Goals for Australian EV Vehicles

The territory aims for all new vehicles purchased within its borders to be EVs by 2030, aligning its targets with leading European cities. Additionally, the ACT has set a goal of achieving net zero emissions by 2050.

Current Incentives for Electric Cars in Australia

The ACT introduced incentives such as two years of free registration and stamp duty exemption for “zero-emissions” vehicles, encompassing full battery-electric and fuel-cell electric cars to support these objectives. Plug-in hybrid vehicles (PHEVs) received a 20% discount on these fees.

Upcoming Changes

However, these incentives for electric cars in Australia are set to phase out by June 30, 2024. An emissions-based registration scheme will replace the current two-year registration waiver. Under this new scheme, eligible electrified vehicles will benefit from reduced registration fees compared to higher-emitting vehicles, with weight no longer factored into the fee calculation.

Continued Support

Looking ahead to the 2024/25 financial year, the ACT government plans further changes while maintaining support through zero-interest loans up to $15,000 for eligible households purchasing EVs. These loans apply to vehicles below the luxury car tax threshold (currently $89,332) and EV charging equipment.

Additional Initiatives by ACT 

Beyond financial incentives, the ACT allows EV drivers to utilize transit lanes and encourages public servants to opt for EV fleet vehicles whenever feasible. These initiatives aim to accelerate the adoption of electric vehicles and contribute to environmental sustainability goals in the territory.

EV cars Adelaide

3. South Australia’s EV Policy and Incentives

South Australia has recently made significant adjustments to its electric vehicle (EV) incentives and policies, reflecting its evolving approach to promoting sustainable transportation.

The South Australian Government has introduced several incentives to promote the adoption of zero-emission vehicles (ZEVs). There is a three-year exemption from registration fees for new ZEVs registered by June 30, 2025. A $138 rebate is also available for the first year’s registration charge. The first 7,000 ZEVs registered after October 28, 2021, are eligible for a $3,000 subsidy, provided the vehicle’s price is below $68,750.

The government offers subsidies to households for installing home chargers for EV charging infrastructure. The first 7,500 households can receive up to $2,000 for this purpose. The incentive has two categories: a minimum system, which limits the subsidy to $500, and an integrated system, which qualifies for the full subsidy.

Recent Changes 

On December 31, 2023, South Australia discontinued its $3000 rebates for EVs and Fuel Cell Electric Vehicles (FCEVs). However, new EV buyers are still eligible for a three-year registration fee exemption on all qualifying purchases until June 30, 2025.

Transition Support

The state government has ensured that customers with binding purchase contracts made before December 31, 2023, will still receive the $3000 rebate, even if fulfilment of the order extends beyond that date.

Future Goals

South Australia has set ambitious targets to lead the nation in EV adoption and intelligent charging by 2025. Additionally, the state aims for all new passenger vehicles sold to be electric by 2035.

Road User Tax Proposal

Previously, South Australia proposed a road user tax on EVs to replace fuel excise tax revenue as EV adoption increases gradually. Despite the plan being scrapped, there remains strong political support for implementing such measures once EVs constitute 30% of new vehicle sales, anticipated by July 2027.

Infrastructure Support

In the past, South Australia offered a subsidy of up to $2000 to install home EV smart chargers, limited to 7500 households. However, this initiative was discontinued in the 2022/23 budget.

These measures reflect South Australia’s commitment to transitioning towards a more sustainable transportation future, balancing incentives with fiscal considerations and long-term environmental goals.

4. New South Wales (NSW) Initiatives

New South Wales has significantly changed its EV incentives and policies in recent years, reflecting its commitment to advancing electric vehicle adoption.

According to the NSW Government, New South Wales offers several incentives that could save individuals up to $5,540. One key incentive is abolishing stamp duty for electric vehicles (EVs) priced at $78,000, potentially saving motorists around $3,000. A $3,000 rebate is also available for the first 25,000 new battery-electric and fuel-cell EVs costing under $68,750.

The NSW Government has also allocated $171 million for infrastructure development to ensure the state is EV-ready within the next four years. This plan includes installing EV chargers every 5 kilometres along major commuting corridors, every 100 kilometres along major highways, and within 5 kilometres of residential areas with limited parking.

EV Rebate Scheme In New South Wales

As of January 1, 2024, NSW discontinued its $3000 EV rebate scheme. However, buyers who deposited eligible vehicles before this date are still eligible for the rebate, even if delivery occurs after the cutoff.

Stamp Duty Exemption

The stamp duty exemption for new and used EVs and Fuel Cell Electric Vehicles (FCEVs) priced under $78,000 concluded on December 31, 2023.

Policy Recognition

NSW’s EV policy, unveiled in June 2021, garnered acclaim, earning praise from the Electric Vehicle Council (EVC).

Ambitious Targets

These incentives were implemented to drive the adoption of zero-emission vehicles, aiming for over 50% of new car sales in NSW to be electric by 2030. Additionally, NSW targets achieving net zero emissions by 2050, aligning with broader environmental sustainability goals.

NSW continues to evolve its approach to EVs to support these objectives and foster a more sustainable transportation future.

NSW EV Road User Charge and Infrastructure Plans

New South Wales (NSW) had proposed a controversial EV road user charge to commence from July 1, 2027, or when EVs constitute more than 30% of new car sales in the state. This charge aimed to offset the reduction in fuel excise revenue.

Original Road User Charge Plan

Under the initial plan, EV and Fuel Cell Electric Vehicle (FCEV) owners would charge 2.5 cents per kilometre, while plug-in hybrid owners would pay 2.0 cents/km. This system meant a dual payment scenario, including the road user charge and the fuel excise tax.

Reevaluation Following Legal Precedent

However, NSW is now reassessing this strategy in light of a High Court ruling in October 2023, which deemed Victoria’s similar EV road user tax unconstitutional. This ruling has set a precedent that all states and territories must carefully consider.

Infrastructure Investments

Part of NSW’s original EV strategy included a $171 million investment in expanding charging infrastructure. Additionally, a $33 million plan was outlined to transition the NSW government fleet to EVs by 2030.

Charging Infrastructure Rollout

The NSW government aims to install EV chargers at 100km intervals along major highways and at 5km intervals on key Sydney roads. This initiative targets households with limited off-street parking access, aiming to facilitate easier EV adoption and charging accessibility.

5. Northern Territory EV Incentives

The Northern Territory Government is set to introduce new financial incentives for electric vehicle (EV) purchases. Starting in July 2022, the main incentives include eliminating stamp duty and two years of free registration. Additionally, buyers will have access to a zero-interest loan of up to $15,000 for battery electric vehicles, applicable to vehicles below the luxury electric vehicle threshold.

Moreover, the government has committed to establishing a grant program to support the development of EV charging infrastructure at homes, workplaces, and public locations throughout the state.

Stamp Duty and Registration Incentives

From July 1, 2022, and continuing until June 30, 2027, purchasers of new or used battery-electric, fuel-cell, and plug-in hybrid vehicles are eligible for a $1500 discount on stamp duty and enjoy free registration for five years. These incentives primarily target passenger and light commercial vehicles.

Electric Vehicle Charger Grant Scheme

The territory has also implemented an Electric Vehicle Charger Grant Scheme. Under this initiative, eligible owners receive $1000 for installing a residential EV charger, while businesses can receive up to $2500.

Road User Charge Consideration

Previously, the Northern Territory government was contemplating an EV road user charge. However, this plan was postponed following a High Court ruling invalidating a similar scheme in Victoria, prompting a reconsideration of such measures across all states and territories.

These initiatives underscore the Northern Territory’s commitment to fostering EV adoption despite geographic challenges, aiming to build a more sustainable transportation ecosystem.

6. Queensland’s Progressive EV Incentives

The Queensland Government is offering subsidies of $3,000 for zero-emission vehicles (ZEVs) priced below $58,000. Additionally, vehicle registration and registration duty costs will continue to be discounted.

The government has also pledged $10 million to co-fund the installation of public EV chargers across Queensland.

Enhanced Rebate

Since April 21, 2023, Queensland has doubled its rebate to $6000 and increased the dutiable vehicle value threshold to $68,000 plus on-road costs. This rebate is available to buyers with a total household taxable income of $180,000 per year or less.

Continued Support

In addition to the increased rebate, Queensland continues to offer discounted registration fees and favourable stamp duty rates for EV owners.

Ambitious Targets

Queensland has set ambitious goals, aiming for 50% of new passenger vehicle sales to be zero-emission by 2030, with a further target of reaching 100% by 2036.

Infrastructure and Past Initiatives

Previously, Queensland promoted EV adoption through initiatives such as the ‘electric super highway’ stretching from the Gold Coast to Cairns. These efforts highlight Queensland’s proactive stance in building a sustainable future for transportation through enhanced incentives and infrastructure development.

Electric vehicles in Australia

7. Tasmania’s EV Initiatives

The Tasmanian Government has removed stamp duty for all zero-emission vehicles (ZEVs) for two years. Their primary initiative, however, is the ChargeSmart Grants program. In its first round, this program offered $600,000, and the current round is providing up to $50,000 for DC public fast chargers and up to $2,500 for AC destination chargers. It highlights the Tasmanian Government’s strong emphasis on developing EV infrastructure across the state.

Electric Vehicle Rebate Program

In November 2023, Tasmania launched an Electric Vehicle Rebate program offering $2000 for new EVs and second-hand electric cars newly registered in Tasmania. All 375 rebates allocated to the program were claimed by April 2024, and currently, the government is not accepting new applications. However, opportunities may arise if original registrations are deemed ineligible, so interested parties should check with the relevant government department. The rebate program does not cover plug-in hybrid cars.

Charging Infrastructure Loans

Tasmania continues to offer no-interest loans ranging from $500 to $10,000 for installing EV charging infrastructure. These three-year loans are available to eligible households, small businesses, and non-profit organizations, supporting expanding charging capabilities across the state.

Changes in Stamp Duty and Registration Exemptions

Previously offered incentives have been discontinued, such as the two-year stamp duty waiver for all new and used EV purchases with no price ceiling and the two-year registration exemption for hire car companies purchasing EVs.

These measures underscore Tasmania’s commitment to enhancing EV infrastructure and fostering sustainable transportation options despite adjustments in specific incentives over time.

8. Victoria’s EV Policy and Recent Changes

The Victorian Government offers a $3,000 subsidy, which is applied immediately upon purchase of any zero-emission vehicle (ZEV), including battery and fuel cell electric vehicles. This subsidy is available for the first 20,000 cars priced under $68,740.

Additionally, the government has allocated $20 million for ZEV public buses and $19 million to subsidize and accelerate the rollout of EV chargers across the state.

Subsidy Withdrawal

The Victorian government terminated its electric vehicle subsidy on June 30, 2023. Initially launched in May 2021, the zero-emissions vehicle (ZEV) scheme offered rebates of $3000 for eligible EVs priced up to $68,740, aiming to spur EV adoption. However, the program was discontinued as part of broader cost-cutting measures to address the state’s fiscal challenges.

Emission Targets

Despite the subsidy withdrawal, Victoria maintains ambitious goals, aiming for 50% of all new cars to be emissions-free by 2030, progressing towards achieving net zero emissions by 2050.

Road User Tax Reversal

Victoria also scrapped its contentious EV road user tax following a successful challenge in the High Court. This tax imposed charges of 2.5 cents per kilometre for EVs and 2.0 cents per kilometre for plug-in hybrid electric vehicles (PHEVs), potentially costing the average motorist around $400 annually. The state government was required to refund these charges, including interest, to affected electric vehicle owners.

Infrastructure Investments

Separately, Victoria has allocated funds towards expanding its EV charging network, committing $19 million for this purpose. Additionally, $10 million has been earmarked to transition the government fleet to electric vehicles, with an additional $20 million dedicated to a new electric bus trial.

These measures highlight Victoria’s ongoing commitment to supporting electric vehicle adoption and enhancing sustainability initiatives despite specific policies and incentive adjustments over time.

9. Western Australia’s Commitment to Electric Vehicles

The Western Australian Government does not offer direct subsidies for electric vehicles (EVs). Instead, they are investing $21 million to establish a fast-charging network. Plans are to install 45 new charging locations throughout Western Australia by January 2024.

Extension of Zero Emissions Vehicle (ZEV) Rebate

In May 2024, Western Australia announced an extension to its ZEV rebate program, initially introduced in 2022 with a $60 million budget. This extension includes an additional $5.2 million, enabling more EV buyers to benefit from up to $3500 rebates on eligible vehicles priced under $70,000.

Investment in Charging Infrastructure

Alongside rebates, Western Australia has committed $22.6 million to expand its charging infrastructure. Notably, $10 million of this funding is allocated to not-for-profits and small to medium-sized businesses, significantly reducing their installation costs for EV charging stations.

Challenges in Road User Charges

Despite progressive plans, Western Australia needs help implementing a distance-based road user charge for EV and PHEV owners following a recent legal setback. The initiative was intended to start in July 2027 but is now uncertain due to legal complexities.

Support for Home Charging and Infrastructure Development

Previously, Western Australia incentivized home-charging with a $200 rebate under its Home Plan initiative. Additionally, the state strategically installs charging points at intervals of approximately 160 kilometres across its vast territory.

Government Fleet and Emissions Targets

In line with its environmental goals, Western Australia aims to convert at least 25 per cent of its governmental passenger car and SUV fleet to zero-emissions vehicles by 2026. This effort is a broader commitment to achieving net-zero emissions by 2050.

These initiatives highlight Western Australia’s proactive approach to fostering sustainable transportation solutions and driving the adoption of cleaner energy technologies.

Australian EV Plan Overview

The Australian Government’s National Electric Vehicle (EV) Strategy is a comprehensive initiative aimed at advancing the adoption of electric vehicles across the country. Key components of the strategy include:


Measures to make electric vehicles more affordable through incentives and rebates.

Charging Infrastructure

Expansion of the charging infrastructure network to improve accessibility and convenience for EV owners.

Emissions Reduction

Australian EV plan has Committed to achieving significant reductions in greenhouse gas emissions by promoting the use of electric vehicles.

Availability and Options

Increasing the availability and diversity of electric vehicle models in the Australian market to cater to various consumer preferences.

Overall, the strategy is designed to facilitate a smoother transition to electric mobility, addressing Australia’s environmental concerns and consumer needs.

Frequently Asked Questions

1. Which state has the highest EV rebate?

Queensland currently leads the way in state EV incentives with the Queensland Zero Emission Vehicle Rebate Scheme. This scheme offers a rebate of $6,000 for EVs purchased from April 21 2023, applicable to vehicles priced under $68,000.

2. Which state in Australia has the most electric cars?

The Australian Capital Territory (ACT) has the highest market share of electric vehicles. According to the Electric Vehicle Council’s Australian EV Industry Recap 2023 report, electric models accounted for 22 per cent of new vehicle sales in the ACT in 2023, leading all states and territories.

3. Is there an EV rebate in Australia?

There is an EV rebate in Australia under the Zero Emission Vehicle (ZEV) Rebate Scheme. Drivers of brand-new light zero-emission vehicles powered solely by batteries or hydrogen fuel cells are eligible for a $3,500 rebate on vehicle purchases. The cars must have a dutiable value of $70,000 or less to qualify,

4. What is the road tax on electric cars in Australia?

For the 2023-24 financial year, the road user charge rates in Australia are as follows:

Battery EV or Hydrogen Fuel Cell EV: 

2.800 cents per kilometre

Plug-in Hybrid EV: 

2.240 cents per kilometre


In assessing the landscape of EV incentives across Australian states, it’s clear that each region offers unique advantages tailored to promote electric vehicle adoption. States like Victoria, New South Wales, and Western Australia stand out from generous rebates and supportive infrastructure investments to forward-looking emissions targets. While the specifics of incentives may vary, collectively, they demonstrate Australia’s commitment to a sustainable future and encourage consumers and businesses alike to embrace cleaner transportation alternatives. As the nation continues to evolve its policies and investments in this space, it’s promising to witness a growing momentum towards reducing emissions and fostering a greener tomorrow through electric vehicles.