Incentivising uptake of EVs in NSW
The NSW Government is committing almost half a billion dollars in tax cuts and incentives as a part of its Electric Vehicle (EV) Strategy
NSW Government have announced their Electric Vehicle Strategy, with almost half a billion dollar investment in tax cuts and incentives to drive an electric revolution. Treasurer Dominic Perrottet said $490 million is being committed in the 2021-22 NSW Budget to cut taxes, incentivise uptake and reduce barriers for electric vehicle purchases over the next four years.
“Our comprehensive strategy is about making sure we have the right mix in place to incentivise the take-up of electric vehicles while ensuring everyone who drives on our roads contributes to funding and maintaining them,” Mr Perrottet said.
“Our strategy also commences long-term major tax reform. Today we begin the process of permanently phasing out stamp duty on electric vehicles and a deferred transition to a fair and sustainable per-kilometre road user charge for electric vehicles.
“From September this year, we will waive stamp duty for eligible EVs under $78,000 and $3,000 rebates will be up for grabs for the first 25,000 purchasers of battery and hydrogen fuel cell electric vehicles under $68,750.
Energy and Environment Minister Matt Kean said we need to give drivers more options to make their next car an EV.
“Countries and car makers around the world are moving to EVs and NSW consumers deserve access to the latest vehicle models when they go to buy a car,” Mr Kean said.
“We also know that, with new cars staying on the road 15 years on average, the vast majority of new cars sold in NSW need to be EVs by 2035 to achieve net zero emissions by 2050.
“Our aim is to increase EV sales to more than 50 per cent of new cars sold in NSW by 2030 and for EVs to be the vast majority of new cars sold in the State by 2035.
The $490 million in funding and tax cuts includes:
- Stamp duty will be waived for eligible electric vehicles (battery and hydrogen fuel cell vehicles) priced under $78,000 purchased from 1 September 2021;
- Rebates of $3,000 will be offered on private purchases of the first 25,000 eligible EVs (battery and hydrogen fuel cell vehicles) under $68,750 sold in NSW from 1 September 2021;
- $171 million for new charging infrastructure across the State. This includes $131 million to spend on new ultra-fast vehicle chargers, $20 million in grants for destination chargers to assist regional tourism, and $20 million for charging infrastructure at public transport hubs on Transport for NSW owned land.
- $33 million to help transition the NSW Government passenger fleet to EVs where feasible, with the target of a fully electric fleet by 2030. These vehicles typically are onsold after three to five years, providing availability for private buyers in the second hand market.
For more information, visit: nsw.gov.au/electric-vehicle-reform