The only electric car incentives in Australia at a federal level is a higher luxury car tax threshold on low-emission vehicles. Cars with a luxury car tax (LCT) value over the LCT threshold attract an LCT rate of 33%. The indexation factor for the 2019–20 financial year for: [1]
- fuel-efficient vehicles is 0.987
- other vehicles is 1.018
Most Australian states offer some level of electric car incentives for buyers in Australia, which often take the form of a subsidy. Grants and incentives across Australian states: [2]
| State | Grants/Incentives | More info |
|---|---|---|
| Western Australia | Electric cars are exempt from the 10% on-demand transport levy. Electricity cost savings by charging your electric car off-peak as part of the Synergy Electric Vehicle Home Plan trial. | Department of Transport, WA Synergy |
| New South Wales | Pay lower tax on the purchase of your vehicle. This is decided by the Green Vehicle Guide. | Roads and Maritime Services |
| Queensland | Reduced registration fees. Lowered duty costs. | Queensland Electric Vehicle Strategy |
| Northern Territory | N/A | N/A |
| Victoria | $100 registration discount. | VicRoads |
| ACT | 20% discount on vehicle registration. No stamp duty payable. | Access Canberra |
| South Australia | The Sustainability Incentives Scheme will provide a range of rebates supporting community investment in sustainable technologies including 50% for charging stations up to specified pricing limits. | City of Adelaide |
| Tasmania | Grants for public and business electric charging stations. | Department of Premier and Cabinet |
Other ways to source grants for businesses looking to transition to electric fleets include:
- Australian Renewable Energy Agency (ARENA) aims to accelerate Australia’s shift to affordable and reliable renewable energy. It funds renewable energy projects from research to large-scale deployment across the whole entire innovation chain. As at 30 June 2019, ARENA had total funds available to commit to new projects of $279.4 million. ARENA’s pipeline of projects currently exceeds this amount and whilst not all of the projects in the pipeline will be successful in seeking funding, it is expected that ARENA’s funds will be fully committed in the next 12-18 months. For how it works, go to https://arena.gov.au/funding/. [3]
- The Clean Energy Finance Corporation (CEFC) is encouraging the EV transition by providing finance to businesses looking to upgrade their vehicle fleets. [4] Through the Clean Energy Innovation Fund, the CEFC finances start-up companies targeting the electric vehicle market. [5] CEFC’s Green Vehicle Finance has co-financing programs to help provide finance at favourable interest rates to corporate, government and not-for-profit fleet buyers, as well as business and individual buyers, to encourage buyers to choose eligible lower emissions passenger and light commercial vehicles. The co-financiers include:
- ANZ Energy Efficient Asset Finance program provides customers with a 0.7 per cent discount on the standard asset finance rate for eligible energy efficient assets.
- Eclipx’s corporate, government and not-for-profit fleet buyers have access to favourable interest rates when choosing eligible low emissions passenger and light commercial vehicles with a carbon emissions threshold that is 20 per cent below the most recently published Australian averages for new passenger and light commercial vehicles.
- FirstMac is offering customers lower rates for lower emissions with a 0.7 per cent discount on their car loan interest rate for buying a qualifying new or demonstration green vehicle.
- Macquarie asset finance program provides a 0.7 per cent discount on finance for businesses and consumers who choose electric and plug-in hybrid electric vehicles.
- Metro Finance, commercial auto and equipment lender, offers a 0.7 per cent finance discount to encourage business customers to choose greener vehicles that meet predetermined emissions standards. [6]
- The Emissions Reduction Fund (ERF) is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. [7] Projects that lead to reductions in emissions-intensity of transport are eligible to participate. [8] For how it works, go to http://www.cleanenergyregulator.gov.au/ERF/About-the-Emissions-Reduction-Fund/How-does-it-work
Read about how to finance vehicles for your fleet here.