Australia's first government EV incentive announced

South Australia's Labor government has announced it will waive stamp duty on the purchase of a new electric or zero-emission car and provide free registration for five years — if its wins next month's state election.

Designed to encourage the uptake of environmentally-friendly vehicles in the state — and to encourage the electorate to vote Labor — the move is believed to be the first state (or federal) government EV incentive offered in Australia.

Under the proposed incentives, South Australians who purchase a $40,000 electric vehicle will be able to save $2155 over five years in stamp duty and registration.

Vehicle owners will still be required to pay other fees including the Compulsory Third Party insurance premium, Lifetime Support Scheme Levy and administration.

The election-mode promise was made today by the SA Minister for Sustainability, Environment, Conservation and Climate Change, Ian Hunter.

"Our natural environment is our state's most important ongoing asset, and Labor is committed to protecting our 'clean and green' reputation so that South Australia remains a great place to live," said Hunter.

"Driving an electric vehicle is a good environmental choice, and with Labor's new incentives, it also makes good financial sense.

"Minimising our pollution and greenhouse gas emissions is an environmental imperative. If we can encourage more South Australians to drive cars that have a low impact on our environment, our state will continue to be a world leader when it comes to taking strong steps to combat climate change and its impacts."

SA Labor says the EV incentives are part of its commitment to decarbonise the transport industry and supports Adelaide aims to become the world's first carbon-neutral city.

In Adelaide, emissions from transport contribute about 35 per cent of total emissions - 90 per cent of that from private passenger cars.

SA Labor says it will also continue to lobby the federal government to remove the tariff barriers that currently apply to electric and hydrogen-powered vehicles, to encourage more people to switch to these types of vehicles.

There are now more than 100 EV charging points across the state, including almost 50 Tesla charging stations as part of contract arrangements to build "the world's biggest battery" in Jamestown.

Today's announcement follows Labor's commitment to increase SA's Renewable Energy Target to 75 per cent and introduce a 25 per cent Renewable Storage Target, by 2025.

Electric Vehicle Council CEO Behyad Jafari said the latest announcement demonstrates South Australia's leadership in shaping the future of Australian industry.

"Electric vehicles are the future of the transport industry and it's clear by today's announcement that the SA Labor government understands the opportunity that presents.

"By encouraging the initial market for electric vehicles, South Australia puts itself in the driver's seat to attract investment and create new jobs.

"South Australians will see an immediate benefit in driving cars that are much cheaper to run, bringing down the cost of dropping the kids off at school and getting to work.

"This is a wakeup call for all governments across Australia — it's time to take meaningful action on electric vehicles."