Australia wants to reward businesses for lowering their CO2 emissions by providing tax exemptions, incentives, and benefits for those investing in electric vehicles.
Corporate and government fleets currently account for most of Australia’s transport emissions. This is because they generate over half of new vehicle sales, drive more kilometres and generate higher fuel and maintenance costs. The good news is that there’s already a plan to change these conditions. Federal tax exemptions, regional incentives, and other benefits have already been set to encourage organisations to electrify their fleets as they decrease their cost of operations.
This guide will include a quick overview of all of them, including:
- Federal EV incentives
- The Electric Car Discount
- The Future Fuels Fund
- Regional EV incentives in:
- South -Australia
- ACT (Australian Capital Territory)
Federal Government EV incentives
The Electric Car Discount
The Electric Car Discount scheme will make electric cars affordable for fleets, businesses and vehicles. This is because qualified businesses will be exempt from the current 5% import tax on EVs and the 47% Fringe Benefits Tax (FBT).
Businesses will be able to save on the actual price of the EV and employee tax benefits. For example, according to the Electric Vehicle Council, a $50,000 Nissan Leaf will be $2,000 cheaper because of import tax exemptions. Additionally, FBT exemptions will save employers up to $9,000 a year.
To be eligible, every EV a business incorporates into its fleet must:
- Be battery electric (BEV), hydrogen fuel-cell electric cars (FCEV) or plug-in hybrid electric (PHEV) cars.
- Sit below the current $84,916 Luxury Car Tax (LCT) threshold.
- Be bought or have a novated lease and given to an employee for private use.
- The Future Fuels Fund:
- This government ongoing program has one main objective: to help speed up the incorporation of Zero Emission Vehicles (ZEVs) charging infrastructure nationwide. To do so, the Australian Renewable Energy Agency (ARENA) will provide $127.9 million in funds to eligible light or heavy vehicle fleet operators that wish to integrate battery electric vehicles into their fleet.
Applications for this second round of funds opened earlier this year, on 19 February 2022, and will be revised every two months. Up to $24.55 million has already been allocated to set up 403 ZEV fast charging stations nationwide. Future funding rounds will aim at public charging, hydrogen refuelling, and private household smart charger installations. For more updates and information, consult the official Future Fuels Fund webpage.
Regional EV Fleet Incentives
New South Wales (NSW)
There are more than $20 million in grants for electric vehicle chargers, thanks to Destination NSW incentives. Additionally, eligible vehicles purchased from September 1, 2021, for personal or business could also get as much as $5,538 in incentives.
These are four main benefits that EV buyers and businesses looking to invest in EV chargers and charging solutions could take advantage of in the NSW:
The Drive Electric NSW EV fleets incentive. This is a $105 million plan to reduce operations costs as NSW organisations shift to battery electric vehicles (BEVs) or fuel cell electric vehicles (FCEVs) into their fleets. There will be multiple funding rounds available until 2024. Read official guidelines and access the official NSW website’s online bidding platform here.
Stamp duty exemption. Eligible new and used EVs valued at up to $78,000 (including GST) can receive a tax exemption of up to $3,000. This applies to both business and personal purposes.
A $3,000 EV rebate. The first 25,000 eligible EVs worth up to $68,750 (including GST) from 1 September 2021 could receive a $3,000 rebate. Businesses with less than ten vehicles could access up to two new vehicles. Used EVs, plug-in-hybrids and cars procured under a novated lease will not be eligible.
The NSW EV charger grant. Businesses available for NSW destinations will also be able to qualify for up to $20 million in co-funding grants for the purchase and installation of EV chargers. The grants can fund businesses with up to 4 EV chargers per site. For complete eligibility requirements, check out the Wallbox NSW grant guide here.
To speed up the incorporation of ZEVs and set up new charging infrastructure across its territory Queensland has recently launched an extensive action plan, the Zero Emission Vehicle Strategy 2022 -2032. It also plans to keep expanding Queensland Electric Super Highway (QUESH), currently the most extended intrastate EV charging network in the world. Phase three of QUESH will incorporate 24 more charging locations to its current 31 fast-charging sites. These are the three main actions plans from Zero Emission Vehicle Strategy 2022 -2032 currently set in place:
Queensland ZEV Rebate Scheme. Queensland’s zero-emission vehicle strategy 2022-2032 includes $45 million in rebate discounts to make ZEVs more affordable. That means that ZEVs with a dutiable value of up to $58,000 purchased for business or personal use from March 16, 2022, could be eligible for a $3,000 rebate. To apply and obtain more information about eligibility requirements, consult Queensland Zero Emission Vehicle Rebate Scheme’s official website.
Queensland’s EV Charging Infrastructure Scheme. In partnership with the local government and key industry members, a $10 million co-fund is currently available for investments in public EV fast chargers. Expressions of interest closed Monday, August 29 2022. All successful applicants will be called for stage two on September 30 2022. For more details, see Electric Vehicle Charging Infrastructure Scheme’s official website.
QFleet’s complete transition to ZEVs. The Queensland Government aims to have at least 288 EVs in its fleet this 2022. Its goal is to be fully ZEV equipped region-wide by 2026, including Qfleet light passenger vehicles and TransLink-funded buses.
Victoria’s Zero Emissions Vehicle Roadmap includes a $100 million package of programs and policies to facilitate the adoption of ZEVs and ensure that half of all its light vehicle sales are ZEVs by 2030. It includes the following incentives and rebates:
- The Zero Emissions Vehicle (ZEV) Subsidy
- There will be $46 million in government funding to help Victorians reduce the upfront costs of ZEVs. This means 20,000 subsidies valued at $3,000 each for eligible new ZEVs purchased on or after May 2 2021, with a purchase price (dutiable value) under $68,740. All will be subject to availability and applied at the point of sale by participating car dealers. Find a participating ZEV trader here or obtain more information about eligibility requirements at the Zero Emissions Vehicle (ZEV) Subsidy website.
- $100 registration fee discount
- All light motor vehicles that qualify as Zero Low Emission Vehicles (ZLEV) are eligible for a yearly $100 discount on their registration. Access the Victorian Roads official site for more information about its conditions and regulations.
- EV Charging grants: There are two main grant opportunities to support EV charging in Victoria. The EV Charging for Business Fleets (EVCBF) leaves $1.5 million in funds for businesses that want to invest in EV charging infrastructure for their fleet. Applications are now closed. The Destination Charging Across Victoria (DCAV) program includes $5 million in funds that will be allocated to install 141 EV fast-charging stations in 116 high-use areas across regional and metropolitan Victoria. Applications for both grants are now closed.
- ZEV Commercial Sector Innovation Fund
- There will be $5 million available for the most cost-effective and innovative ideas to boost ZEV commercial purchases in Victoria. Applications have now closed, but you can consult the official Victorian Department of Transportation site for more updates.
- EV Charging grants for Council Fleets (EVCCF
- Victorian Councils have been awarded a total of $1.25 million in grant funds to install 120 EV private charging stations in 57 regional council sites.
South Australia (SA)
The Electric Vehicle Plan includes $53.25 million in discounts and subsidies to accelerate EV adoption and implement charging solutions in South Australian homes and businesses. It will be provide the following:
- A Royal Automobile Association (RRR) Grant
- The implementation of public charging infrastructure, including a $12.35 million grant to construct and operate Australia’s first statewide EV rapid charging network.
- Free registration and subsidy for EVs
- A $3,000 subsidy and a 3-year registration exception to promote the purchase of eligible EVs and hydrogen fuel cell vehicles valued under $68,750
- The Smart Charging Trials program
- A $3.2 million investment in EV smart charging trials will address integration risks and service gaps in the market. The objective is to provide practical solutions to encourage households and businesses to acquire EVs and invest in renewable electricity supply.
- Visit the official Electric Vehicle Action Plan site for an updated list of South Australia’s EV and charging solution incentives.
Australian Capital Territory (ACT)
The ACT Zero Emissions Vehicle Strategy aims to meet this region’s nation-leading sales target, assuring that 80-90% of new vehicle sales are ZEVs by 2030. There will be various incentives and benefits to reduce EV cost of ownership, increase the availability of EV chargers and solutions and attract ZEV businesses into Canberra. Such as:
- EV rebate and registration discount
- A $5,840 rebate for EVs and a $1,116 registration discount. One of the highest in Australia.
- Stamp duty exemption
- An extension on stamp duty waivers for EVs and hydrogen vehicles purchased from August 1 2022. This will cut average second vehicle costs by $1,600.
- The Sustainable Household Scheme (SHS)
- This program includes interest-free loans of up to $15,000 to facilitate EV purchases.
- Charging infrastructure funds
- Grants worth up to $2,000 for installing charging infrastructure in apartment buildings.
- Public-charging expansion
- The incorporation of more than 180 new EV chargers in the regional public charging network by 2025.
- For more detailed information on rebates and incentives, consult the Climate Choices ACT official site.
Tasmania has also rolled out a large package of exemptions and grants to make EVs more affordable and to roll out additional charging infrastructure. It consists of:
- Stamp duty exemption
- A current 2-year stamp duty exemption for EV purchases. It applies for new and used EV purchases and could bring up to $2,000 in savings for EVs valued at $50,0000.
- The EV ChargeSmart Program
- The second round of $773,000 in grant opportunities has already been allocated to installing 14 fast chargers and 23 destination and workplace chargers across the territory.
Consult Tasmania’s official government site for further details and information on regional electric vehicle rebates.
Western Australia (WA)
WA’s Electric Vehicle Strategy aims to make EVs more affordable and expand needed EV charging infrastructure. It includes:
- EV Rebates
- Discounts of up to $3,500 for 10,000 eligible EVs valued below $70,000.
- Subsidies for charging infrastructure
- More than $22.6 million in funds will be allocated to increase charging infrastructure at all new public buildings, such as government offices, hospitals, schools and sports facilities. These funds form part of WA’s commitment to have 25% eligible vehicle fleets become electric by 2026.
- Funds for WA’s fast charging network
- Up to $20 million in grants to help install one of the country’s most extended fast-charging EV networks by January 2024. This network is expected to become fully operational by January 2024 and include EV charging stations in 45 different locations around the state.
Consult WA’s Electric Vehicle Strategy official site for more updates and information.
Northern Territory (NT)
The Northern Territory will also work along with other states and territories to reduce the costs of EVs and support the implementation of EV chargers and charging solutions. There will be two main benefits up for grabs:
- Stamp duty exemption
- Eligible plug-in electric vehicles, including BEVs and PHEVs valued at up to $50,000, will be able to receive a stamp duty exemption of up to $1,500 and free registration until 30 June 2027.
- The EV charger Grants Scheme
- There are currently 100 residential grants valued at $1,000 for residential property chargers and 80 grants of $2,500 for business chargers. These are available for charger purchases and installations. Consult the official NT site for more information about how to apply, terms and conditions.
We’re here to answer any questions and assist you in your quest for the best charging solution. Fill in this form to receive valuable guidance and information to help you manage your business EV fleet.