Victorians pony up for EV subsidy

More than 400 Victorians registered for the state’s $3000 electric vehicle subsidy within a week of it opening for business on May 2.

In a clear indication that at least early adopters are taking advantage of the first EV incentive of its type in Australia, that number is equivalent to about a third of total EV sales nationally in the first four months of this year (according to VFACTS figures, which exclude Tesla).

Providing more context, total EV sales in Victoria in 2019 were just over 800, not including Tesla cars.

“It’s been huge,” said Stan Krpan, the head of Solar Victoria – the government body that is managing the program – of the response to the EV subsidy in an interview with RenewEconomy’s Energy Insiders podcast.

“We’ve had about 400 customers already register, and I’m hearing great things from the manufacturers and the dealers.”

Krpan said the details of how the rebates will be delivered are still being worked out with car companies and dealers, although brands have already taken action.

Tesla, for example, has reduced the price of the Model 3 Standard Range Plus, which starts just under the threshold at $68,425 plus on-road costs.

Introduced following widespread criticism of the Victorian government’s EV road tax that comes into effect from July, the scheme offers a $3000 rebate for EVs priced under $68,740.

While similar EV taxes are planned in other states, the ACT government is offering interest-free EV loans and has removed stamp duty for EVs, with NSW flagging the possibility of similar exemptions.

Victoria’s pioneering EV subsidy is part of the state government’s pledge to cut greenhouse gas emissions by 45-50 per cent by 2030 and reach net zero emissions by 2050.

A recent survey by Infrastructure Victoria found that 70 per cent of a 200-strong ‘citizen’s jury’ declared they wanted to see a ban on new petrol and diesel car sales by 2030.

To that end, the Victorian government will expand its EV fleet by 400 cars over the next two years, while at the same time spending $19 million on new EV recharging stations.

A key plank of Victoria’s $100 million EV strategy is to have 50 per cent of all new car sales in Victoria to be zero-emissions vehicles by 2030.

For now, the Victorian subsidy is limited to 20,000 new EV sales on a first come, first served basis, starting with 4000 vehicles in the first wave.

“The government has been open that it will revisit the program,” said Krpan. “Whether the value changes or the rebate changes is something that will be looked at for the next tranche.”

Speaking at the Smart Energy Conference on Thursday, Victoria’s minister for energy, environment and climate change, Lily D’Ambrosio, defended the EV road user charge, claiming motorists would actually save up to $1600 a year.

“I think when people do the math on this for themselves, they will realise that the road user charge is a small contribution to our road system, and overwhelmingly the savings from getting ZEV [zero emissions vehicle] on a road in Victoria will dwarf the small contribution to a reducer charge,” she said.

“We’ve also sent a really strong message to the Commonwealth government that if you’re not going to move on emissions standards for new vehicles then Victoria is prepared to get the ball rolling with other jurisdictions.”