The Federal and Victorian State governments have recently introduced a number of incentives to encourage the use and uptake of Electric Vehicles (EV) across Australia.
In May 2022, the new Labour Government introduced an “Electric Car Discount” policy taking effect from 1 July 2022, which introduced several initiatives to try and boost the uptake of EV adoption.
These initiatives include the elimination of Fridge Benefits tax on EVs as well as an attractive rebate for new zero emission electric vehicle subsidy.
Our advisors have outlined below what the Zero Emission vehicle subsidy the means for Victorians.
What EV initiatives and subsidies are available for Victorians?
The state government introduced a Zero Emissions Vehicle subsidy, which provides a $3,000 contribution to help reduce the upfront cost of purchasing a new eligible zero-emissions vehicle. Unlike various other schemes, this ZEV subsidy is applied at the point of purchase, so the purchaser’s initial expenditure is reduced.
What vehicles are included in the ZEV subsidy?
Vehicles entitled to the ZEV subsidy have zero tailpipe emissions and include Battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs). Unfortunately, hybrid vehicles are excluded from the subsidy scheme.
What are the details of the ZEV Subsidy scheme?
The Victorian ZEV scheme provides:
- a subsidy of $3,000 on the purchase of a new Zero Emission Vehicle.
- the subsidy is available for eligible ZEV passenger cars purchased from a participating ZEV trader
- the total purchase price of the vehicle must be less than $68,740 (excluding registration and stamp duty, including options, accessories and GST).
What electric vehicles are less than the $68,740 threshold?
There are a few vehicles that fall under the $68,740 budget. First, the most affordable EV on the market is the MG ZS at $41,990 then comes the MG HS 1.5 Turbo Excite PHEV costing $48,690 with the Mitsubishi Eclipse Cross ES PHEV variant coming the third cheapest at $51,762.70.
What are the deadlines?
The ZEV scheme commenced on 2 May 2021 and will be available until May 2024 or until rebates are fully committed, whichever occurs sooner. So, if you are considering purchasing an electric vehicle in the new year, make sure you ask your car dealer if they are a ZEV participating trader, so they can help you to claim your $3,000 subsidy.
How can Morrows Help?
If you are considering purchasing Electric Vehicles for your fleet or for yourself and would like to understand what government or tax initiatives apply to you, please reach out to your Morrows Advisor.