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Carsales Staff3 Jun 2025
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Which Australian states offer the best EV incentives?

The devil is in the detail with new electric vehicle subsidies, as this state-by-state breakdown reveals

UPDATED 03/06/2025: There are now no monetary rebates for EV purchases in Australia following the closing of West Australia's $3500 EV rebate on May 10, 2025.

In 2023, more than 87,000 new EVs were sold in Australia, and in 2024 that number rose by almost 5 per cent but 2025 has seen EV sales plateau somewhat.

A lot of that early growth comes down to new vehicle releases and strong buyer demand for affordable EVs, which has in turn created a more competitive landscape that in recent years was fuelled by government incentives.

These have, however, been rolled back across all states and territories, while there are still discounts on registrations, interest free loans available and other measures such as stamp duty discounts or waivers in some states.

Here's a very quick guide to the EV monetary rebates and incentives as of June 2025, with more granular further down the article.

NSW: Nothing
QLD: Nothing (small discounts on stamp duty, rego)
SA: Nothing (3-year rego fee exemption)
VIC: Nothing (rego discount)
ACT: Nothing (Stamp duty exemption, free rego for EVs, interest free loans)
NT: Nothing (Free stamp duty, rego on EV/PHEV, EV charger grants for residents
WA: Nothing
TAS: Nothing

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National EV incentives - Federal government

Before getting into our state and territory breakdown, it’s worth noting that the Australian government updated its National Electric Vehicle Strategy from April 2023. This plan includes a broad range of measures to increase the uptake of EVs and reduce emissions.

A core tenet is the New Vehicle Efficiency Standard (NVES), which took effect from January 1, 2025. This will encourage car-makers to fast-track EVs to Australia like never before, creating a more competitive environment that should push prices down.

Many Australians have also taken advantage of the federal government's move to make EVs and plug-in hybrids exempt from fringe benefits tax (FBT) if they are under the luxury car tax threshold for fuel-efficient vehicles, potentially saving thousands of dollars when the car is secured via a novated lease. Be aware, however, that the exemption for plug-in hybrids ended in April 2025 but applies to EVs until 2027.

Elsewhere, successive federal governments have committed more than $80 million in funding to construct public EV fast-charging stations across the country.

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Australian Capital Territory EV incentives

The ACT was quick to move with its EV strategy, first announcing plans back in 2018.

In 2025 EV buyers in the ACT get vehicle registration discount along with stamp duty discounts and zero interest loan options.

Free rego was offered in the past along with free stamp duty for ‘zero-emissions’ vehicles but that was rolled back in June 2024.

There are more changes coming in the 2024/25 financial year, but for now the ACT government is continuing to offer zero-interest loans of up to $15,000 for eligible households to buy an EV – limited to cars under the luxury car tax threshold (currently $89,332) – or EV charging equipment.

The ACT also allows EV drivers to make use of its transit lanes and is pushing for public servants to adopt EV fleet cars wherever possible.

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New South Wales EV incentives

New South Wales scrapped its $3000 EV rebate scheme on January 1, 2024, claiming the leftover funds from the program would be used to boost the state's public EV charging infrastructure.

The stamp duty exemption also ended on that date and the state no longer offers EV incentives.

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Like other states and territories, NSW had also planned to introduce a controversial EV road user charge from July 1, 2027, or when EVs make up more than 30 per cent of all new cars sold in NSW, to compensate for the reduction in fuel excise revenue.

Under the plan, EV and FCEV owners were to be charged 2.5c per kilometre, while plug-in hybrid owners were to be slugged 2.0c/km – meaning they would pay twice: once for the road user charge and again for fuel excise tax.

However, the state has now backed away from this strategy following a High Court ruling in October 2023 that found Victoria's similar EV road user tax was unconstitutional.

intellihub ev streetside charger 2

The NSW government’s original EV plan also included a $171 million investment in new charging infrastructure as well as a $33 million plan to transition the NSW government fleet to EVs by 2030.

The NSW government says it wants to install EV chargers at 100km intervals on major highways and at 5km intervals on major roads in Sydney, to incentivise households with limited access to off-street parking and therefore charging.

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Northern Territory EV incentives

The Northern Territory is charging ahead with its EV incentives – even though it is among the most affected by long distances and, so far, a lack of charging infrastructure.

Until June 30, 2027, buyers of new or used battery-electric, fuel-cell and plug-in hybrids can receive a $1500 discount in stamp duty and free registration.

The incentive is focused on passenger and light commercial vehicles.

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Queensland EV incentives

Like Victoria and New South Wales, Queensland has ended EV purchasing incentives.

The rebate for all eligible EV purchases ended on 2 September 2024. However, EV owners are eligible for small discounts on stamp duty and annual registration costs.

Previously, the Sunshine State encouraged the take-up of zero-emission vehicles with an ‘electric super highway’ between the Gold Coast and Cairns, among other measures.

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South Australia EV incentives

South Australia axed its $3000 EV and FCEV rebates as of December 31, 2023, however new EV buyers are still able to receive a three-year registration fee exemption on all eligible purchases until June 30, 2025.

There are no stamp duty exemptions.

SA planned to introduce a road user tax on EVs that would gradually offset the fuel excise tax as more consumers buy them, but the controversial program was scrapped. There is still strong support for the measure among politicians in the state.

The road user tax was due to have come into effect once EVs comprise 30 per cent of all new vehicle sales in South Australia – or by July 2027 at the latest.

The state was also offering a subsidy of up to $2000 to install EV smart chargers at home, limited to 7500 households, but this was ditched in the 2022/23 budget.

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Tasmania EV incentives

Tasmania opened an Electric Vehicle Rebate program in November 2023, which provided funding of $2000 for new EVs and second-hand (but ‘new to Tasmania’) electric cars.

However, the 375 rebates allocated to the program were all taken by April 2024, and at the time of writing the government was not accepting new applications. In other words, there are no EV incentives any more.

Tassie is also offering no-interest loans of between $500 and $10,000 to install charging infrastructure for EVs. The three-year loans are open to eligible households, small businesses and non-profit organisations.

The state is no longer running a two-year stamp duty waiver for all new and used EV purchases (no price ceiling). The two-year registration exemption for hire car companies that purchase EVs has also been dropped.

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Victoria EV incentives

The Victorian government abandoned its electric vehicle subsidy on June 30, 2023.

The state's zero-emissions vehicle (ZEV) scheme was launched in May 2021 and was meant to run until May 2024, with up to 20,000 rebates of $3000 on offer for eligible EVs (with a retail price up to $68,740).

However, the Victorian government pulled the plug on the scheme as part of cost-cutting measures introduced to curb the state’s growing debt.

Victoria has also scrapped its controversial EV road user tax, which was successfully challenged in the High Court and forced the state government to refund charges (with interest) to electric car owners.

Under the road user charge, EV owners were forced to pay 2.5c/km, while PHEV owners were required to pay 2.0c/km, amounting to about $400 a year for the average motorist.

Separately, the Victorian government has previously pledged $19 million to its EV charging network, $10 million to transition the government fleet to EVs and $20 million towards a new electric bus trial.

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Western Australia EV incentives

Western Australia remains committed to providing subsidies for electric vehicle buyers, announcing an extension to its Zero Emissions Vehicle (ZEV) rebate in May 2024, but like all other states and territories its monetary rebates are now closed.

WA was the last state to close cash rebates, which it shut down on May 10, 2025.

Under the $60 million scheme introduced in May 2022, a $3500 rebate was offered on eligible EVs (and hydrogen fuel-cell electric vehicles) that retail for less than $70,000.

The $5.2m extension to the scheme in 2024 translated to a few thousand extra rebates being made available to EV buyers in the state, on top of the original 10,000 limit.

WA has also previously committed to spending $22.6m on charging infrastructure. Of this, $10m was earmarked for “not-for-profits and small and medium-sized businesses” in a bid to slash their EV infrastructure installation costs – by up to 50 per cent in some cases.

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Western Australia was also planning to follow other states by introducing a distance-based road user charge for EV and PHEV owners from July 1, 2027.

However, as is the case across Australia, the plan has been derailed with the High Court's ruling that Victoria's now-defunct EV road user tax was unconstitutional.

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Written byCarsales Staff
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