Australia’s adoption of electric vehicles has been slow to say the least. And it’s not surprising. High prices, a lack of carbon emission standards for vehicles and taxes – there are plenty of obstacles. And when it comes to incentives, it’s a mixed bag that largely depends on states and territories and varies between them. But which one is the best right now?

We’ve scoured all the current offers in every state and territory and at the time of writing the best place in Australia to buy an EV is in the ACT.

That could very well change in the future, and we’ll keep this article updated. But right now, the ACT is offering a good mix of tax breaks, rebates, and public infrastructure promises to make it one of the best places in the country not just to buy, but to keep using. an electric vehicle.

Of course, it should be kept in mind that it has a relatively small land mass compared to all other states and territories. So, when it comes to public infrastructure, it will be much cheaper to deploy a charging network. for example.

As for the “worst” state for EV absorption, it’s somewhat relative. For example, it would be easy to say the Northern Territory due to the lack of public infrastructure. But there are incentives and the population density alone means there are fewer Australians buying electric vehicles in the Northern Territories.

Personally, I would say Victoria is worse off right now, mainly due to the introduction of a road user tax when less than 1% of the population actually owned an electric vehicle. Of course, there are also rebates and tax breaks, but there are bigger ones in other parts of the country. Its investment in public charging is also notable, but it also means that people will pay more the further they go thanks to the road use tax.

While it could reasonably be argued that anyone using Victorian roads should pay their fair share, should we really introduce disincentives to the adoption of electric vehicles whilst also pursuing zero emissions targets due to climate change ?

Either way, here’s what each state currently offers for EVs so you can decide for yourself.

Federal

The Labor government has expressed a desire to promote electric vehicles and low-emission vehicles. It is currently accepting submissions for a national electric vehicle strategy and has committed $275.4 million over six years to the Driving the Nation fund. This aims to provide cheaper and cleaner transport across Australia.

This will include:

  • $146.1 million over five years for the Australian Renewable Energy Agency. This will go towards projects that reduce emissions in the transport sector;
  • $89.5 million over six years for the Hydrogen Highways initiative. This will help create hydrogen refueling stations on Australia’s busiest freight routes; and
  • $39.8 million over five years for the National Electric Vehicle Charging Network. In partnership with the NRMA, it will aim to build 117 fast charging stations on Australia’s major highways.

The Labor Party also introduced Australia’s first-ever federal tax incentives for the adoption of electric vehicles in its October 2022 budget. It stipulates that certain batteries, hydrogen fuel cells and plug-in hybrid electric cars receive social benefits in import taxes and duties. They will have to be below the luxury car tax threshold for fuel-efficient cars (currently $84,916) and will only apply to cars purchased after July 1, 2022.

Now, to be fair, that’s pretty vague. However, given that we haven’t had a federal incentive for EV adoption so far, at least that’s something. For now, I would say watch this space to see if Labor delivers on its promises.

New South Wales

Tax breaks

  • No stamp duty for electric vehicles that cost less than $78,000; and
  • Other electric vehicles and PHEVs will also receive it in 2027 or when sales of new low-emission vehicles reach 30%.

Discounts or rebates

  • $3,000 rebate for electric vehicles under $68,750. This is available for the first 25,000 purchases.

Road user charges

None yet, but it is looking to follow in Victoria’s footsteps from 2027: 2.5c/km for electric vehicles and 2c/km for PHEVs, indexed annually.

This deadline will be brought forward if sales of new low-emission vehicles reach 30% by then.

Investment in public infrastructure

  • $171 million has been pledged for a state charging network; and
  • Electric vehicles can continue to use public transit lanes statewide through October 2023.

Government fleets and investments

  • All vehicles in the government fleet will be electric vehicles by 2030.

LAW

Tax breaks

  • No stamp duty on electric, hybrid and ICE vehicles that emit less than 130g CO2/km.

Discounts or rebates

  • $15,000 in interest-free loans for “eligible households” under the Sustainable Household Scheme;
  • Rego free for two years on new electric vehicles; and
  • 20% ongoing discount on electric vehicles purchased before May 1, 2021.

Road user charges

None

Investment in public infrastructure

  • $1.4 million grant to expand ACT’s current 30 public chargers to 150 at 77 charging stations.

Government fleets and investments

  • All new vehicles in the government fleet are electric vehicles (with some exceptions).

Victoria

Tax breaks

  • No tax on luxury cars.

Discounts or rebates

  • $3,000 rebate for electric vehicles under $68,750. This is available for the first 4,000 purchases in its first round, but 20,000 discounts will be offered in total.

Road user charges

  • 2.5 c/km for electric vehicles indexed annually; and
  • 2c/km for PHEV indexed annually.

Investment in public infrastructure

  • $19 million to speed up chargers in regional Victoria; and
  • $20 million for the ZEV public bus trial.

Government fleets and investment

  • $10 million to replace 400 fleet vehicles with ZEVs.

queensland

Tax breaks

  • Reduced stamp duty on electric vehicles and plug-in hybrid vehicles: 2% stamp duty on vehicles up to $100,000 and 4% above.

Discounts or rebates

  • $3,000 rebate for individuals and businesses on electric vehicles under $58,000.

Road user charges

None

Investment in public infrastructure

  • $10 million in co-funding from government and industry for more public chargers statewide; and
  • 24 new fast charging locations to connect more rural and regional areas to the Queensland Electric Superhighway.

Government fleets and investments

  • 100% zero emission fleet by 2026.

southern australia

Tax breaks

None

Discounts or rebates

  • $3,000 rebate on EVs under $68,750. This will only be available to the first 7,000 buyers; and
  • Three-year rego exemption for electric vehicles and hydrogen fuel cell cars until June 30, 2025.

Road user charges

None

Investment in public infrastructure

  • A statewide charging network is in the works for 2025.

Government fleets and investment

  • The government fleet will be fully EV or PHEV by 2030.

Western Australia

Tax breaks

None

Discounts or rebates

  • $3,500 rebate on electric vehicles under $70,000. This will only be available for the first 10,000 buyers.

Road user charges

None until 2027

Investment in public infrastructure

  • Plans for a charging network between Perth and Kununurra, Esperance and Kalgoorlie.

Government fleets and investment

  • Target of 25% electric vehicles for government fleets by 2026.

Tasmania

Tax breaks

  • No stamp duty on electric vehicles until July 2023.

Discounts or rebates

None

Road user charges

None

Investment in public infrastructure

  • $50,000 grants for public DC chargers;
  • $2,500 grants for public AC destination chargers; and
  • The ChargeSmart program awarded $600,000 in grants for fast, destination and workplace chargers.

Government fleets and investments

  • 100% government electric vehicle fleet by 2030.

North territory

Tax breaks

  • $1,500 stamp duty rebate on new and used electric vehicles between July 2022 and July 2027. But they must cost less than $50,000.

Discounts or rebates

  • Rego free between July 2022 and July 2027; and
  • The Electric Vehicle Charger Grant Program (residential and commercial) offers 100 residential grants of $1,000 and 80 business grants of $2,500 for the installation of chargers. A total of $300,000 has been committed.

Road user charges

None

Investment in public infrastructure

Nothing solid yet

Government fleets and investments