The New South Wales (NSW) government has announced that it will be ending purchase incentives for new electric vehicles (EVs) from January 2024. However, instead of providing rebates, the government plans to allocate some of the funding to install more charging stations across the state. This decision follows in the footsteps of Victoria, making NSW the second Australian state to remove incentives for EV purchases.
The NSW electric-vehicle incentive scheme, which began in September 2021, offered a $3000 rebate and waived stamp duty for buyers of the first 25,000 electric cars with a ‘dutiable value’ below $68,750. As of August 31, 2023, approximately one-third of the proposed incentives had been claimed, amounting to $25.1 million out of the allocated $75 million budget.
The NSW Premier, Chris Minns, believes that the subsidy has contributed to increasing prices of EVs, as car companies have taken advantage of the high demand for these vehicles. The government plans to save $527 million by discontinuing the incentive scheme and complimentary stamp duty in the upcoming state budget.
However, instead of providing purchase incentives, the NSW government intends to invest up to $260 million in electric-vehicle charging infrastructure. This investment aims to support drivers in regional areas and those without easy access to off-street parking. With approximately 125,000 electric and plug-in hybrid cars currently on Australian roads, there is a growing need for efficient and widespread charging options.
NSW Minister for Energy and Climate Change, Penny Sharpe, sees the focus on infrastructure support as a more comprehensive use of public funds to facilitate EV adoption. Despite the removal of incentives, individuals who have already ordered an electric car and expect to benefit from the rebate scheme will not be affected.
The Sydney Morning Herald