Explore the trajectory and potential of electric vehicles in Australia.
Humans have come a long way since the invention of the wheel and horse-drawn carriages. We birthed the industrial age, created combustible engines, took flight, and even explored our orbiting moon. But what does our technological future have in stall for us? And what can we learn from our predecessors when it comes to the future of new energy?
In this blog, we’ll explore what Australia's current proposed federal EV strategy looks like, as well as deep dive into what each state and territory are doing to ensure the uptake of EV technology in our country.
What is Australia's current proposed strategy?
The Australian government recently released its long-awaited “Future Fuels Strategy and Vehicles Strategy” in a bid to tackle emissions targets by increasing funding for the uptake of new energy vehicles. The plan aims to make electric vehicles more viable and estimates that there will be 1.7 million electric vehicles on Australian roads by 2030. Although the “Future Fuels Strategy and Vehicles Strategy” has outlined that $250 million will be directed to improving infrastructure for EV’s (this includes charging stations, job creation and residential charging ports), it ignores the introduction of EV subsidies, tax incentives, or a detailed sales target for emission reduction.
How are we improving our strategy?
As we mentioned, the Australian Federal Government is yet to officially introduce a subsidy reform for EV vehicles (outside of increasing their existing ‘green’ vehicle threshold for the Luxury Car Tax), so each Australian state and territory has made it their individual responsibility by offering tailored rebates and incentives.
Here’s a breakdown of what each state has to offer:
Australian Capital Territory
Ironically, the nation's capital was the quickest to move onto an EV strategy, first announcing plans back in 2018. To tie in with some of our European counterparts, the ACT is offering new owners two years free registration, and an exemption from stamp duty for any full battery-electric or fuel-cell vehicles. Hybrid plug-ins will also be offered a 20% discount upon purchase.
New South Wales
New South Wales has recently become a major player in the EV market after releasing an EV strategy earlier this year. NSW will offer a $3,000 rebate for the first 25,000 battery electric and fuel-cell electric vehicles sold at a price of less than $68,750. Following this, any EV or fuel-cell electric vehicle (FCEV) that is worth less than $78,000 will be exempt from stamp duty. These incentives aim to make 50% of NSW’s car fleet electric by 2030.
Like its northern neighbours, Victoria will offer a $3000 rebate for all new Electronic Vehicles (EVs) and fuel-cell electric vehicles (FCEVs) purchased for less than $68,740. This only applies to the first 20,000 vehicles purchases and does not extend to hybrids. Unlike NSW, it will not be offering free stamp duty.
Queensland offers a differentiation in EV uptake, by dividing their strategy between incentivising and usage. Usage encouragement comes from a proposed electric superhighway that will be built between Gold Coast and Cairns. Rebate incentives for purchases will not be reduced at this stage, but discounted registration fees and stamp duty rates have been outlined for EV’s that are worth up to (and over) $100,000.
The Northern Territory has recently taken charge in a bid to promote EV’s, even though they lack the current infrastructure to support long distance travelling with charge points. From July 2022, EV purchasers will receive a $1500 discount on stamp duty and five years free registration.
South Australia’s current EV strategy includes financial incentives and a proposed road user tax which may come into effect in 2027. A $3000 subsidy will be available to some 6000 EV purchases, not including hybrids. South Australia currently has no proposal for stamp duty reductions.
Tasmania is currently offering offering 2 years free stamp duty to all EV purchasers, as well as incentivising EV purchases for rental companies and coaches by offering 2 years free registration.
Western Australia is yet to create a proposal for their EV strategy but does offer a $200 rebate for any residential charging ports as part of their home plan incentive.
With a combination of state and federal strategy cooperation, Nectr can explore a sustainable EV plan option that will benefit Australian's. We caught up with Jake Song, our Product Manager to discuss Nectr's future with EV's. Here's what he had to say:
Q1. Do you think the Australian Government's "Future Fuel Strategy" will encourage new buyers in the EV market?
Achieving net zero targets in all aspects is a globally trending topic, so it makes sense that Australia's "Future Fuel Strategy" considers emissions, affordability and infrastructure. I do believe that the Australian Government's strategy will encourage and ease consumers minds by tackling charging station infrastructure issues. One of their aims is to fund 50,00 charging stations in Aussie homes in 2022. This will make a huge impact.
Q2. Moving into 2022, how does Nectr plan to position itself for EV's?
Here at Nectr, we believe that the EV market will begin gaining momentum by mid-2022 with a larger variety of affordable EVs available to customers. Nectr plans on positioning through enabling the infrastructure side of EV's. We can do this by bundling our existing and new energy products into one affordable plan. This will include rooftop solar, a residential battery add on and EV charging system. Obviously there are still many considerations for the future of EV's in this country, but we feel that a bundled product for customers will make the most sense.
Q3. What countries are already doing a great job with their EV strategy?
There are a few countries that have taken the necessary steps to lead the adoption of electronic vehicles. The main countries that have done a good job at subsidising EV's for consumers and implementing hefty import duties on foreign vehicles are the Nordic countries. Norway and Iceland have the highest share of plug-in electric vehicles for new passenger car sales in 2021. (74.8% and 45% share.)
If you found our The future of Electronic Vehicles (EV's) in Australia blog useful and want to save this information for later, you can view each state and territories plans by clicking The future of Electronic Vehicles (EV's) in Australia Infographic. Have a look to see what EV incentives your state can offer you!