The electric vehicle (EV) industry in Australia has undergone a significant transformation in recent years. In fact, the number of electric vehicles across the country nearly doubled between 2022 and 2023, with over 83,000 EVs now driving on Australian roads.
This substantial rise in electric vehicle adoption is primarily due to innovation and advances in technology within the industry that have made it a lot more practical, affordable, and enjoyable to drive an electric car. However, if the New South Wales Government want to reach their ambitious target of zero emissions by 2050 and increase EV sales to 50% by 2030, it is essential to incentivise NSW residents to go electric with their new car purchases.
Rebates and Incentives for Electric Cars in NSW
The NSW Government created the NSW Electric Vehicle Strategy to accomplish its ambitious sustainability goals, introducing incentives for residents and businesses within the state who purchase electric vehicles rather than petrol or diesel.
While there is plenty of benefits to driving an electric car in 2023, many Australians still have financial and logistical concerns. To combat these concerns and reassure residents that it is a practical and profitable decision to go electric, the NSW Government have implemented multiple corrective actions.
In addition to their plans to invest $209 million to create a world-class, extensive EV charging network, financial incentives must be given to the people adopting electric cars. To reward those that choose to go electric, the NSW Government are offering a substantial rebate for new electric vehicles purchased in the state and a phasing out of stamp duty for electric vehicle purchases.
What is the Electric Car Rebate in NSW?
As of September 2021, the New South Wales Government provides rebates of $3,000 to all full battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) purchased within the state. This EV rebate will be given to the first 25,000 electric vehicles sold in NSW valued below $68,750.
This rebate is the NSW Government’s primary action to encourage EV uptake across the state and is designed to help more people afford an electric car. As of March 31, 2023, 6203 rebates have been paid out to NSW residents who opted to go electric and purchase a new EV with a dutiable value under $68,750, meaning there is still lots of opportunity to receive a rebate if you decide to buy an electric vehicle in New South Wales.
EV Stamp Duty Waiver:
In addition to the electric car rebate, the NSW Government have phased out stamp duty for any electric vehicles purchased after September 2021, up to $78,000. Stamp duty will also be removed for all other EVs (valued above $78,000) and plug-in hybrids from July 1 2027, or alternatively when EVs make up at least 30% of new car sales in New South Wales. Although we have made excellent progress regarding EV adoption in New South Wales, we are still far from reaching this 30% landmark. In 2022, only 4% of all new vehicle sales were electric vehicles.
Coupling the removal of stamp duty and the $3,000 rebate available for any car under $68,750 offers an incredible opportunity for savings on your next car purchase. If you are already considering going electric, and it would suit your lifestyle, these two incentives can make a sizeable difference. By combining the $3,000 rebate with the reduction in stamp duty, you could save yourself as much as $5,500.
Am I Eligible for the NSW Electric Car Rebate?
Embracing the opportunity to buy an electric car while saving yourself money sounds fantastic. However, we understand that it can be challenging to navigate the application process and understand exactly what you need to do to benefit from Government programs such as the electric car rebate.
We understand it can be overwhelming to determine if you are eligible, so we wanted to clearly outline the eligibility criteria to help you quickly decipher if you qualify for the rebate.
Who Can Apply for The NSW EV Rebate?
The electric car rebate is available to individual residents within New South Wales and businesses or organisations registered within the state with fewer than 10 employees. As a resident, your BEV or FCEV must be purchased and registered for personal use within New South Wales. Small businesses seeking the rebate are only eligible for up to two rebates per company.
What Electric Vehicles Are Eligible for The Rebate?
Rebates are available for any new electric vehicle registered on or after September 2021 with a dutiable value of less than $68,750. These cars can be passenger vehicles, sports utility vehicles, light trucks, or light commercial vehicles. However, to be eligible, this must be the first time the car is registered, and it cannot be a second-hand car you purchase.
It is important to note that the rebate is only available for BEVs and FCEVs, and it is not available if you are purchasing any of the below vehicles:
- Hybrid electric vehicles or plug-in hybrid EVs
- Second-hand FCEVs or BEVs
- Motorcycles (including e-bikes, scooters, mopeds, and ATVs)
- Caravans or Trailers
- Heavy trucks or vehicles
- Boats
How Do I Apply for the NSW Electric Car Rebate Program?
The process is straightforward once you have checked the above criteria to see if you are eligible for the EV rebate. Firstly, you need to collect all the required documents detailed below to prove that you are a resident of New South Wales, purchased your new BEV or FCEV within the specified timeframe, and are the first person to register this car. Then using this information, you will submit your application on the NSW Government website and await approval.
Required Documents for The Application Process
When submitting your application, you must upload a few documents to prove your eligibility and receive approval. During the application process, ensure to include the following:
- A valid NSW Driver’s Licence
- Proof of Registration Entitlement: This sales contract must include the date of purchase, the price, the tax invoice, and if the vehicle was purchased interstate.
- Certificate of Registration: This must show the registration number, the registered owner of the vehicle, the registration history, duty paid, the vehicle purpose, and the Vehicle Identification Number (VIN)
Timeline for Approval and Receiving the Rebate
Once you have met the necessary criteria and included all the required documents in your application, you should have no issues receiving the rebate. The NSW Government affirm that you will hear back on the approval status of your application within 15 business days of submission. If your application is successful and you have been granted the rebate, the funds will be transferred directly into your bank account within 5 business days.
Final Thoughts
In 2023, there is a financial incentive to purchase an electric vehicle in New South Wales. The available $3,000 rebate and the phased-out stamp duty allow you to save more than $5,500 on your next car purchase. These financial benefits, combined with the significant investment from the NSW Government into charging infrastructure, make now an opportune time to join thousands of Australians in switching to an electric vehicle.
If you do decide to go electric for your next car, ensure that you check the eligibility criteria above before doing so, gather all the necessary documents, and only then submit your application. Once you are eligible, you will contribute to a more sustainable future in Australia and save yourself a lot of money in the process. And if you’re looking for a way to finance your new EV – be sure to get in contact with the car finance experts at Credit One.
