A range of concessions to lower the cost of EVs
Commonwealth & NSW Governments
Residential - any
EVs are significantly cheaper to run, even when you charge them using commercial fast charging services. Electric motors have only a handful of moving parts and no transmission, so there is much less to go wrong, meaning lower servicing costs. Typical battery warranties are now eight years / 160,000km, so there's no need to be concerned about longevity. Plus, governments have introduced a range of measures to reduce some of the difference in up front costs, when compared to an equivalent petrol or diesel car.
The Australian government has lowered the costs of new EVs through the following measures:
- The Luxury Car Tax threshold for EVs is $89,332 vs $76,950 for internal combustion engine cars (from 1 July 2023).
- If you are a business, refer separately [provide a link] to various tax concessions that may be available
The NSW government has lowered the cost of new EVs through the following measures:
- EXPIRING 1 JANUARY 2024: A rebate of $3000 on full battery EVs up to $68,750 (dutiable value) for the first 25,000 applicants. Threshold is based on the recommended retail price plus delivery charge and optional extras. As at the end of March 2023, over 6,000 had been paid. NSW residents and businesses with less than 10 vehicles registered in NSW can apply.
- EXPIRING 1 JANUARY 2024: Stamp duty is waived on full battery EVs under $78,000 (dutiable value). NSW vehicle stamp duty is 3% up to $45,000 ($1350) and 5% thereafter. The exemption applies to new and used battery EVs.
- EVs receive a small discount on NSW motor vehicle registration fees. The amount of the discount depends on the weight of the vehicle and whether it is used for business or private use.
- The new NSW government announced that it was redirecting funding from the EV rebate and stamp duty waiver to invest in building out public EV charging infrastructure.
|What’s it worth?
- The LCT threshold change is worth up to $1,530 depending on the vehicle.
- NSW EV rebate: $3,000
- NSW stamp duty rebate: about $1300-2000 depending on vehicle value.
|How to claim:
Most concessions are calculated by dealer at point of purchase or when registering the vehicle. The owner needs to claim the NSW $3,000 rebate after purchase.
Luxury Car Tax: https://www.ato.gov.au/Rates/Luxury-car-tax-rate-and-thresholds/ and https://www.drive.com.au/news/luxury-car-tax-threshold-increased-2023-24/
NSW rebate: https://www.revenue.nsw.gov.au/grants-schemes/electric-vehicle-rebate
Stamp duty: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/motor-vehicle-duty/exemptions
Registration Costs: https://www.nsw.gov.au/driving-boating-and-transport/vehicle-registration/fees-concessions-and-forms/lower-taxed-vehicles
Luxury Car Tax: ATO website and Drive article
NSW rebate: Revenuse NSW website
Stamp duty: Revenue NSW website
Registration Costs: NSW Government website
No stated expiry except for NSW rebate, which applies to the first 25,000 vehicles.