Victoria to Scrap $3,000 Electric Vehicle Incentive by June 30, 2023
Victoria’s Zero Emission Vehicle (ZEV) subsidy is set to finish earlier than anticipated, with the Victorian government announcing that they will discontinue the scheme on the 30th of June 2023.
Scrapping the EV rebate puts the state in a precarious position in its push towards increasing the uptake of EV vehicle sales. It puts Victorian EV buyers behind Queensland, New South Wales, and Australian states that continue to offer EV rebates to buyers.
The ZEV program, which was first introduced in May 2021, was a cornerstone behind Victoria’s commitment towards a clean energy future which aimed for half of all light vehicle sales in the state to be ZEVs by 2030. The program aimed to incentivise electric vehicle ownership with a $3,000 bonus on the first 20,000 eligible electric vehicle purchases.
With more than 1,700 of the 20,000 eligible ZEV program rebates still available with less than a week until the program ends, it begs one very obvious question – why?
When Will the Victorian EV Rebate End?
The Victorian rebate on electric vehicles is set to finish at the end of the 2022/2023 financial year on June 30th, 2023. That means Victorians have until then to purchase through a registered ZEV trader and apply for the $3,000 loan.
How Much Is/Was the Victorian EV Rebate?
At the time of writing, the Victorian government offers a $3,000 EV rebate to eligible purchases of electric vehicles that cost less than $68,740 that were purchased on or after the 2nd of May 2021.
In simple terms, the rebate has been targeted towards Australia’s most popular electric vehicle – Tesla’s wildly successful and popular Standard Range Model 3. Whilst Tesla has flip-flopped on pricing over the years as supply changes and the cost of materials impact manufacturing, today, the standard range Model 3, with a WLTP range of 491km (closer to 400km in the real world), can be had for as little as $66,767 in the base model specification of White exterior and Black interior.
Other vehicles that fall below Victoria’s $68,740 cut-off for the $3,000 EV rebate include:
- GWM Ora
- MG ZS EV
- BYD Atto 3
- Nissan Lead
- Hyundai Kona Electric
- Peugeot e-2008
- Peugeot e-Partner
The subsidy is/was available to the first 20,000 electric vehicles that are sold in Victoria and are limited to one per individual and two per business. At the time of writing this article, there are around 1,700 rebates still up for grabs.
Other caveats for Victoria’s Zero Emission Vehicle (ZEV) rebate include:
- The vehicle must be a new or demonstrator vehicle.
- The purchase date on the contract of sale must be on or after 2 May 2021.
- The vehicle must be purchased through an authorised ZEV trader.
- The vehicle must be registered in the state of Victoria (this means that the vehicle will also be subject to the state’s controversial EV road tax).
- The vehicle must be delivered and registered with VicRoads within six months from when the customer purchased the car.
A run of bad news for Victoria’s EV push
The decision to scrap the Zero Emission Vehicle (ZEV) scheme spells further bad news as some 243 vehicles in Victoria had their registration cancelled after failing to pay the state’s controversial Zero-and Low-Emissions Vehicle (ZLEV) levy, which mandates EV owners must self-report and pay a nominal tax of 2.6-cents for every kilometre driven.
Using data from the most recent ABS Census as a reference point, the Zero-and Low-Emissions Vehicle levy is costing (on average) $322 per year for Victorian drivers who average some 12,400 km of driving each year.
Why is Victoria Scrapping the Zero Emission Vehicle rebate?
While the rhetoric around the backflip on the rebate remains somewhat murky, it’s hard to assume that this comes down to anything other than a cost-saving measure by the local government.
The Electric Vehicle Council didn’t mince their words last week when they said that scrapping the rebate would put Victorians in an unfair position to other states who will continue their rebate programs as we head into the new financial year.
“It is disappointing that the Victorian Government has taken another backward step on EVs, despite their own target of achieving 50 per cent zero-emission vehicle sales by 2030. As a result of this move, potential EV buyers in Victoria will not only lose access to the $3,000 subsidy but will still pay around $1,600 through Victoria’s EV tax over 5 years.”
The move comes in light of Queensland recently doubling down on its commitment to EV sales with a $6,000 rebate on eligible new electric vehicle purchases. It puts Victoria’s government in an awkward position with prospective buyers up in arms at the news.
What’s Next for EVs in Victoria in 2023 and Beyond?
The pressure is on for the Victorian government moving forward through 2023 and beyond, as states like Queensland and New South Wales push ahead with generous EV rebates. With less financial incentive to purchase zero-emission vehicles, Victoria may find itself falling behind in its ambitious target of achieving 50% EV sales by 2030.
For more information about the EV rebates across Australia, or for help financing or obtaining insurance when buying your own electric vehicle, get in touch with the EV finance experts at Credit One. We know it can be difficult to obtain finance for modern EVs, especially with the scrapping of the Victoria Electric Vehicle Incentive, so let us help you find finance for your vehicle so you can contribute to a more sustainable future for the Australian EV market.
