Electric Vehicle owners benefit from government initiatives

The Electric Vehicle (EV) sector might still be in its infancy with it representing 1.8% of new vehicle sales in 2022, but demand is increasing. According to the Federal Chamber of Automotive Industries (FCAI), there was an 83% increase in EV sales to the end of June 2022*, compared with the corresponding period in 2021.

At beCarWise, we’ve also noticed a significant increase in demand: in the first 6 months of 2022, the number of EVs we have arranged novated leases for has almost doubled, compared to same period in 2021.

Of the 1.8% of electric car sales, Toyota-style hybrids account for 7.6 per cent, whilst Volvo has thrown down the EV gauntlet, with its new Polestar Engineered electric cars – which hit our shores in early 2022. Tesla is already a big seller in Australia, accounting for 48% of electric vehicle sales^, while several other major car manufacturers – e.g., Ford, Hyundai, Volkswagen and Kia – have all made commitments to go entirely or predominantly electric by the middle of the next decade.

So, what’s in it for you? Here we give a rundown of government EV policies.

At a glance: 

Federal

The Federal Government has announced the “Electric Vehicle Car Discount” policy, which came into effect 1 July 2022. Under this new policy, electric vehicles are now exempt from two major costs – import tariffs and Fringe Benefits Tax (FBT). This will make electric vehicles more affordable to encourage Australians to choose electric over their petrol counterparts when purchasing a new vehicle.
The Luxury Car Tax threshold for fuel-efficient vehicles was increased from $79,659 to $84,916 on 1 July 2022.
The Albanese Government has increased Australia’s emission reduction targets to 43 per cent.

Announcement: On 27 July 2022, the Government has introduced the Treasury Laws Amendment (Electric Car Discount) Bill 2022 into Parliament.

This draft legislation is aimed to help increase the adoption of electric vehicles by making them more affordable for Australians. EV owners will greatly benefit from this bill as Fringe Benefit Tax (FBT) will now be exempt. This exemption will apply to:

Vehicles that are zero or low emissions. Applies to battery electric cars (EV), hydrogen fuel cell electric cars (FCEV) and plug‑in hybrid electric cars (PHEV).
Vehicles that are salary sacrificed via a novated lease, as well as vehicles that are company owned and/or leased, will no longer have to pay FBT.
Purchase date must be on or after 1 July 2022.
Vehicle must also be below the fuel-efficient luxury car tax threshold at the time of purchase ($84,916 for FY22-23).

After 30 June 2025, this exemption will again be reviewed.

For individuals who purchase a Tesla Model Y using a beCarWise novated lease, their saving would be up to $6,900 each year.

calculate your savings

NSW

The NSW government made a $490 million commitment, beginning 1 September 2021, that includes:

$171 million spent on charging infrastructure, starting with a partnership between Jolt and Endeavour Energy that will see the installation of more than 230 charging points across the state by 2025, offering 7kWh of free energy per day to NSW drivers
a commitment to change the government fleet to fully electric by 2030
The government has delayed its user-pays road tax for EVs until 2027.

To encourage EV uptake, the NSW Government has updated policies and legislation to allow EV drivers to use T2 and T3 transit lanes for a limited time.

VIC

The VIC government has said it wants electric cars to make up half of sales by 2030. Its $100 million package includes:

a $3,000 Zero Emissions Vehicle (ZEV) Subsidy for buyers of cheaper EVs. As of 1 July 2022, there are 1,075 ZEV subsidies remaining
$19 million spent on charging infrastructure across regional Victoria
a commitment to buy EVs for the government fleet.

Victoria became the first Australian state to introduce a ‘user pays’ road tax for electric vehicles. From July 1 2022, owners of pure electric and plug-in hybrid cars will pay a tax on every kilometre driven, with two different per-kilometre rates depending on the vehicle:

2.6 cents/km for electric and other zero-emission vehicles, including hydrogen vehicles
2.1 cent/km charge for plug-in hybrid-electric vehicles

However, for EV owners with a novated lease, there’s peace of mind that all running costs are covered! 

QLD

Queensland’s EV policies include: 

a $10 million co-fund to support public charging infrastructure, in partnership with local government and industry
annual discount on vehicle registration
reduced stamp duty for EVs and hybrid vehicles
$3,000 rebate for zero-emission vehicles valued up to $58,000 (including GST) purchased from the 16 March 2022 onwards.

ACT

The ACT government is offering a range of incentives to increase the number of zero-emission cars on the road:

From May 24 2021 until mid-2024, Canberrans who buy a new or second-hand zero-emissions vehicle will receive two years’ free registration. Vehicles that have been converted to electric and certified will also qualify for the saving, which is worth up to $1,200.
Electric vehicles purchased prior to May 24 2021 will receive a 20% reduction in registration fees.
Zero-emission vehicles are exempt from motor vehicle stamp duty.
The government is also rolling out more charging points across Canberra over the next 12 months, with 70 being the minimum goal.

As part of the Sustainable Household Scheme, zero-interest loans up to $15,000 are available which can be used to help purchase an electric vehicle or electric vehicle charging infrastructure.

SA

The South Australian Government is investing $53.25 million to deliver an Electric Vehicle Action Plan, with the aim to make electric vehicles the primary choice for drivers by 2030.

From 28 October 2021, a $3,000 rebate is available on the first 7,000 new electric vehicles purchased for under $68,750. As of 24 June 2022, there are 6,760 electric vehicle subsidies remaining.
Free registration for the first three years is also available for vehicles purchased for up to $68,750 (including GST).
A $12.35 million grant has been awarded to the RAA to construct and operate Australia’s first statewide electric vehicle rapid charging network.

WA

The WA government is making a $21 million investment in infrastructure and is committed to converting 25% of the government fleet to EVs by 2026.

A $3,500 is available from May 10 2022 for the first 10,000 people who purchase a new electric or hydrogen fuel cell vehicle valued under $70,000.
Plans have been announced to install fast charging stations across 45 locations across the state.

TAS

The Tasmanian Government has established the Electric Vehicle Working Group which is committing to support the uptake of electric vehicle ownership.

The first step in their plan is waiving stamp duty on all new and used electric or hydrogen fuel cell cars between July 1, 2021, and June 30, 2023.
The Tasmanian government plans to transition its fleet to 100% EVs by 2030 and will be investing in state-wide charging stations.

NT

The Northern Territory Government has developed an EV strategy and implementation plan, which includes a range of actions over the next 5 years.

From 1 July 2022 to 30 June 2027, the NT Government will waive:

stamp duty fees for the sale of plug-in EVs up to $50,000 – providing a saving of up to $1,500
the registration fee when you register an EV – providing an annual $91 saving.

From 1 July 2022, the Electric Vehicle Charger (Residential and Business) Grants Scheme will be available to owners of EVs to buy and install EV chargers, with a total of $300,000 being committed. This includes 100 residential grants of $1,000 and 80 business grants of $2,500.

At beCarWise you can rest easy knowing that all vehicle running costs – such as the tax on electric vehicles – are factored into and covered in your regular novated lease repayments. Put simply, it means that any expenses are reimbursed as part of your running cost allowance. This makes budgeting simple and payments convenient – for the life of your lease.

*These figures exclude Tesla, which did not report its sales figures to the FCAI.

^Reference article.

Photo Credit: Tesla

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