The State of Victoria will be ending its the $3000 rebate on new electric vehicles (EVs) under $68,740 beginning June 30. This comes after the government has cut its financial support for the zero-emission vehicle subsidy.
The scheme, which was launched in 2021 to subsidize 20,000 EVs, was originally scheduled to end in May 2024. But a spokesperson from the government said that the subsidy has helped the state in achieving its emissions reduction goal.
“We’ve laid the groundwork to achieve our target of 50% of all light vehicle sales being [zero-emission vehicles] by 2030,” according to the spokesperson.
They have also expressed that the government is committing to spending $19m on more electric vehicle charging stations in regional areas.
Furthermore, EV buyers can also still claim a $500 registration discount over five years.
Backlash from Industry Bodies
This move, according to industry leaders, can potentially put unfair financial burdens on EV buyers in Victoria. It could also impact the government’s efforts to cut emissions from the transport sector.
“If you’re a Victorian who is looking to decarbonise transport, you must be looking at every other state and territory in the country, knowing they are better off than you,” said Electric Vehicle Council Chief Executive Behyad Jafari.
“Not only are you not receiving a subsidy but you’re paying a tax no one else is paying either,” he added.
Mr. Jafari also said that the removal of the subsidy could impact the sales of EVs in the state despite the new National Electric Vehicle Strategy as well as the changes to fringe benefit taxes.
The removal of the EV rebate in Victoria puts it behind Queensland which offers a subsidy of $6000, Western Australia that offers $3500 rebate, and New South Wales and South Australia that are both offering $3000 rebates.
Meanwhile, the zero-interest loans on EVs, Tasmania offers a stamp duty exemption, and the Northern Territory offers discounts on both stamp duty and registration.
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