How much buyer incentives and green car loans could you save on your EV purchase?
With gas prices reaching astronomical levels lately, it’s safe to say that you’re not the only one who wants to explore your electric vehicle options.
In fact, despite the relatively limited range of electric vehicles (EVs) available in Australia, domestic EV sales have nearly tripled in 2021.
But with the average purchase price of electric vehicles still significantly higher than their petrol counterparts, it may be difficult for some Australians to justify the cost of the switch.
Fortunately, many of our states and territories offer incentives for electric vehicle buyers in the form of rebates and tax breaks, which may just mitigate the higher price.
While the federal government hasn’t yet offered any form of incentive to electric vehicle buyers, except for a higher luxury car tax threshold for fuel-efficient vehicles, here’s what governments States propose:
New South Wales
The NSW Government is offering a $3,000 rebate for the first 25,000 electric vehicles priced below $68,750, sold from September 1, 2021.
It also offers a stamp duty waiver for electric vehicles under $78,000 that are registered on or after September 1, 2021.
The Victorian Government is offering a $3,000 rebate for electric vehicles priced below $68,740 before traffic charges, for up to 4,000 vehicles in round one, with two more rounds to follow (up to 20,000 grants in total).
It also offers an annual $100 rebate on registration fees.
The Queensland government is offering a $3,000 rebate for electric vehicles with a purchase price of less than $58,000.
It also charges lower fees for electric vehicles than for gasoline or diesel vehicles.
Other than putting in place electric vehicle infrastructure investment plans, the Western Australian government does not currently offer any incentives for electric vehicle buyers.
The South Australian government is offering a $3,000 rebate for the first 7,000 electric vehicles sold from October 28, 2021, priced below $68,750.
It also offers a three-year registration fee waiver for new electric vehicles registered between October 28, 2021 and June 30, 2025.
The Government of the Northern Territories does not offer a rebate on the purchase price of electric vehicles, but does offer a $1,500 stamp duty rebate on new and used electric vehicles purchased from July 2022 through July 2027.
It also offers free registration for electric vehicles from July 2022 to July 2027.
Australian Capital Territory
The ACT government is offering a stamp duty waiver on the purchase of new zero-emission vehicles and a two-year free registration for electric vehicles purchased until June 30, 2024.
The Tasmanian government is offering a stamp duty exemption on electric vehicles until July 1, 2023.
Other cost reduction incentives
In addition to grants offered by most state governments, your new electric vehicle may also be eligible for financing with a green car loan. Green car loans, which can be used to purchase qualifying fuel-efficient vehicles, tend to come with lower interest rates as lenders incentivize borrowers to make the eco-friendly switch.
At the time of writing, the average minimum interest rate for a green car loan is 6.03%, while the average interest rate for a standard new car loan is 6.73%.
To calculate the potential car loan repayments on your new green car loan, as well as the total interest payable, consider using RateCity’s car loan calculator.
Green car loan (varies)
You could win a $1,000 fuel voucher ~ Ends with 7 months
Promotional Auto Credit Rate ~ Ends with about 2 months
Fixed car loan (with discount on low-emission vehicles)
Offset your car’s carbon emissions over the life of the loan