Incentives make electric cars more affordable
Government initiatives aim to help more people make the switch to electric vehicles.
More Australians are gaining interest in switching to a greener mode of mobility but often the extra cost of an electric vehicle (EV) holds them back.
There are, however, several incentives and discounts available to make the purchase price of EVs more attractive.
In Queensland you can apply for a State Government rebate of $3,000 on any new electric car under $58,000. This rebate is for the first 15,000 applicants.
Also in Queensland, electric and hybrid vehicles get reduced stamp duty costs of $2 per $100 up to $100,000 (dutiable value), and $4 per $100 value thereafter, compared with up to $6 per $100 for petrol or diesel vehicles.
Subject to the full range of government specified conditions, only full battery electric vehicles (light and light commercial models) with a dutiable value up to $58,000 (including GST), but excluding registration fees and registration duty, are eligible. Plug-in hybrids, hybrids, and internal combustion models are excluded.
The Federal Government has also introduced additional incentives.
Fuel-efficient vehicles attract less luxury car tax, leading to a saving of up to $3,152.
The luxury car tax is levied at 33c on each dollar above a certain threshold.
The current threshold is $84,916. From the 1 July 2022, low-emission vehicles, including hybrids, plug-in hybrids, FCEVs and BEVs, will be exempt from fringe benefits tax if they are below the luxury car tax threshold.
The fringe benefits tax exemption for hybrids and plug-in hybrids will end on 1 April 2025.
Additionally, there will be no 5% import trade tariff for low-emission vehicles if they don’t qualify under a free trade agreement.
Another option to consider are some of the new ‘green loans’ that are now available for purchasing low or zero-emission vehicles at a reduced interest rate.
If a new EV is still out of reach, there is still the option of purchasing used.
Currently there is little choice in the used EV market due to limited uptake in previous years, but governments and councils are all looking to transition their car fleets to electric, so it won’t be long before there is more choice for consumers in the used-car market.
RACQ’s position on electric vehicles
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.
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