Do EV incentives apply to plug-in hybrid cars?

State and territory governments around Australia are jumping on the electric vehicle bandwagon, offering a variety of incentives to help promote more owners transition to zero-emissions motoring.

But just as not all EVs are the same, the states and territories have differing opinions on what constitutes an electric car, and whether the growing fleet of plug-in hybrid electric vehicles (PHEVs) – which can operate as an EV for most Australians on an average daily commute – are clean enough to save you some green.

So, here’s the current state-by-state of play for incentives around the country and whether they include plug-in hybrids – or not!

The NSW government announced in June that it would introduce a raft of incentives to encourage a greater take-up of electric and hydrogen fuel-cell cars in order to meet its target of having zero-emissions vehicles make up more than 50 per cent of all new car sales in the state by 2030.

From September 1, 2021, these include a $3000 rebate for the first 25,000 full battery-electric and fuel-cell electric vehicles that cost less than $68,750 and the abolishment of stamp duty for all new and used EV and FCEVs that cost less than $78,000.

Neither of those apply to plug-in hybrid vehicles that still use a conventional internal combustion engine.

However, from July 1, 2027, or when EVs make up more than 30 per cent of all new cars sold in NSW, it will introduce an EV road user charge to compensate for the reduction in fuel excise revenue.

Full EV and FCEV owners will be charged 2.5c per kilometre while plug-in hybrid owners will receive a 20 per cent reduction as they will still contribute to the fuel excise tax when using petrol.

The Victorian government confirmed in May that it has a number of incentives in place for EV owners as it also targets having 50 per cent of all new cars sold in the state by 2030 producing no tailpipe emissions.

Available now, the first round includes a $3000 rebate for all new EV and FCEVs purchased that cost less than $68,750. This does not apply to plug-in hybrid vehicles.

Unlike NSW, which has abolished stamp duty and only plans to introduce an EV user tax from 2027 or when electric cars make up more than 30 per cent of all new car sales, Victorian owners will still have to pay stamp duty on new and used EV transactions and it has already implemented a road user charge for EV owners of 2.5 cents per kilometre.

Plug-in hybrid owners will be charged less, at two cents per kilometre.

Queensland is taking another direction in attempting to encourage a greater take-up of electric vehicles by leading the country in infrastructure that makes it convenient for EV owners to travel around the state.

It does, however, offer discounted registration fees and stamp duty rates for zero and low emission vehicles, which applies to most plug-in hybrid vehicles.

South Australia currently does not offer any purchasing incentives for electric or low emission vehicles and recently delayed the introduction of a road user charge by 12 months to monitor the reaction and progress of a similar program in Victoria.

Similarly, Western Australia has yet to introduce any purchasing incentives for electric or low emission vehicles.

It does, however, offer a $200 rebate for home charging an EV or plug-in hybrid as part of its EV Home Plan Incentive.

In Tasmania, new and used EV buyers have a two-year exemption on stamp duty costs.

This only applies to fully electric and fuel-cell vehicles and does not include plug-in hybrids.

The ACT was the first to introduce incentives for electric cars, offering free registration and zero stamp duty for all new car purchases while owners can also apply for a zero per cent loan between $2000 and $15,000 to assist in upgrading their household infrastructure to recharge the vehicle.

These incentives only apply to full battery-electric and fuel-cell vehicles, not plug-in hybrids.

Even though the Northern Territory currently has the fewest number of electric vehicles on its roads, the NT government recently announced a plan to encourage a greater uptake of EVs.

From 2022, buyers of new or used battery-electric, fuel-cell and plug-in hybrids will receive a $1500 discount in stamp duty and free registration for the next five years.