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Countdown Begins: NSW EV Rebate To Phase Out In 2024

Countdown Begins: NSW EV Rebate To Phase Out In 2024

Published on:
October 31, 2023

Electric vehicles (EVs) are quickly becoming essential to sustainable transportation worldwide. Australian government and communities are also working toward reducing carbon emissions by adopting many electric vehicle rebates nationwide.

One significant one till now is when New South Wales (NSW) took the initiative to align with this global movement. The government has recently taken practical actions to speed up the adoption of EVs.

But the NSW EV rebate to phase out in 2024, so the countdown begins.

The “Supercharge the Shift” program, led by the NSW government, aims to facilitate the transition to electric vehicles.

This initiative lays out a range of strategies and incentives to enhance the accessibility of EVs for NSW residents.

In 2021, the New South Wales Government unveiled a $260 million initiative to grow the state’s adoption of electric vehicles (EVs). The funding is directed towards implementing a fresh NSW EV Strategy.

It is primarily emphasising enhancing critical infrastructure, notably fast charging stations. The strategy will target regions in NSW and individuals living in flat complexes or without access to home charging facilities.

Additionally, the plan will assist drivers in their transition to EVs through educational and awareness campaigns. Electric vehicles are considered a pivotal component in reaching the net-zero target.

NSW EV Strategy

Improving infrastructure: The NSW Government will allocate funds to install fast charging stations. They will expand kerbside charging facilities near residential flat buildings. Lastly, their strategy is to enhance grid capacity to accommodate electric vehicles.

Assisting motorists in the transition: The NSW Government will implement awareness programs to help drivers understand the advantages of electric vehicles and transition processes.

Additionally, the government will explore additional forms of support, such as financial and tax incentives.

Collaborating with industry partners: The NSW Government will collaborate with industry stakeholders to develop the NSW EV Strategy and promote the adoption of electric vehicles within the state.

This collaborative effort includes working alongside car manufacturers, charging station operators, and other businesses operating in the electric vehicle sector.

Phasing Out NSW EV Rebate

The electric vehicle (EV) rebate in New South Wales (NSW) will expire on January 1, 2024.

However, people who have already paid for the car and waiting for the delivery will be unaffected by this date.

As of the end of August 2023, fewer than 9,000 of the original 25,000 EV rebates have been claimed. Those who bought an EV before this date will still be eligible for a rebate, even if their vehicle needs delivery.

Rather than fulfilling the $75 million EV rebate commitment, a new funding allocation of $263 million will support a revised NSW EV Strategy.

It is aligned with the state’s aim to achieve a 50 per cent share of recent electric car sales by 2030 as part of its Net Zero emissions goals.

The updated strategy will encompass the expanded deployment of fast chargers along crucial travel routes, increased curbside street chargers near flat complexes, and enhancements to grid capacity to accommodate EV fleets.

New co-funding initiatives will concentrate on infrastructure development for individuals residing in regional areas and those with limited access to home charging options, such as renters and flat residents.

In addition to the newly allocated $263 million in funding, an additional $149 million has been earmarked for co-funding the establishment of ultra-fast EV charging stations.

The state government is also contributing $10 million to co-fund approximately 500 kerbside charging points in metropolitan NSW areas where residents lack off-street parking access.

An additional $10 million will be co-funded for electrical infrastructure upgrades in around 100 medium and large flat buildings to facilitate the transition to electric vehicles.

Furthermore, the NSW Government is investing $105 million to assist private individuals and local council fleets in acquiring EVs. Simultaneously, the government is committed to electrifying its passenger vehicle fleet.

In addition to the mentioned alterations in the state’s EV policy, the government has reaffirmed that a Road User Charge will come into effect on July 1, 2027, or potentially earlier if battery EVs constitute 30% of new light vehicle registrations.

What is the NSW EV Rebate Cap

The New South Wales (NSW) Electric Vehicle (EV) rebate program had a cap on the maximum rebate amount an individual or business could receive. The cap limited the total financial incentive provided for eligible electric vehicle purchases.

However, the specific cap amount may have varied from year to year or based on the vehicle’s purchase price, and it might have been subject to change as the program evolved.

NSW EV Road user charge

The NSW Government has confirmed introducing a Road User Charge for all zero and low-emissions vehicles, including plug-in hybrids, starting July 1, 2027.

This Road User Charge will ensure that all road users contribute to the expenses of maintaining the road network. The revenue generated from this charge will be directed towards investments in road infrastructure, public transportation, and other essential projects.

Eligibility and Application Criteria

The NSW Government is offering rebates of $3,000 for the first 25,000 new battery electric and hydrogen fuel cell vehicles with a dutiable value below $68,750.

To qualify for the rebate, you must register an eligible vehicle from September 1, 2021, and detailed guidelines, eligibility criteria, and application processes can be found in the Electric Vehicle Rebate Guidelines.

Eligibility Criteria

NSW residents who purchase a new battery electric vehicle (BEV) or hydrogen fuel cell electric vehicle (FCEV) for personal use in NSW are eligible for the rebate.

Businesses or organisations with at least ten registered vehicles in NSW can receive the rebate on a new BEV or FCEV for business usage. At least two rebates are available for eligible businesses.

The rebate is available for new BEVs and FCEVs with a dutiable value of less than $68,750.

Leasing agreements do not qualify for the rebate. The rebate applies to new cars in various categories, including passenger vehicles, sports utility vehicles, and light trucks/commercial vehicles.

Application process

The rebate application process began on November 1, 2021, and applicants must provide certain documents and information. It includes driving licences, registration certificates, and proof of purchase.

Revenue NSW reviews applications and transfers the rebate funds to the applicant’s bank account. The total number of rebates available is 25,000, and updates on the number of rebates claimed are published online and updated quarterly.

Separate applications are required for the rebate and stamp duty refund, although both can be submitted through a single online portal. This information is subject to change, so referring to the most recent government sources for the latest updates is advisable.

Australia’s Net-zero Emissions Targets by 2050

The Australian Government is formulating a plan to achieve Net Zero emissions by the year 2050, in line with the objectives laid out in our 2022 Annual Climate Statement to Parliament.

As part of our strategy to reach Net Zero, developments of Net Zero plan for 2050 and emission reduction targets for 2035. These efforts will lay the groundwork for transitioning to a Net Zero economy, consistent with our international and domestic obligations.

In the 2022 Annual Climate Statement, the government committed to outline a comprehensive plan for achieving Net Zero by 2050.

As a signatory to the Paris Agreement, Australia must update its Nationally Determined Contribution every five years.

The Net Zero plan will position Australia to leverage the advantages of the global shift towards Net Zero. It will offer stability through enduring policies and encourage low-emission and renewable technologies investments.

Development of the Plan and 2035 Emissions Reduction Target

The plan formulation will be transparent, inclusive, and coordinated.

Sectoral Plans:

The Australian Government will devise six sectoral decarbonisation plans, which collectively encompass all significant sectors of the economy. These plans address:

  • Electricity and energy
  • Industry
  • Resources
  • The built environment
  • Agriculture and land
  • Transport

Emissions from the waste sector will be integrated into the industry plan, and a focus on the circular economy will be a cross-cutting theme across all industries.

Development of Sectoral Plans

Formulating sectoral plans will involve engagement with the community, industries, experts, and unions. Collaboration with all levels of government will contribute to the ambition of the projects while ensuring their feasibility and acceptance by the community.

The creation of sectoral plans aligns with recommendations from the CCA, which will also be invited to develop sector-specific decarbonisation pathways to inform these plans.

Solar Emporium’s Support To Net-zero Journey

Solar Emporium has been an industry leader to support Australia’s net-zero journey. And we want to continue our success in helping our customers get all the renewable energy support. Check out our solar packages and EV chargers to start your net-zero journey.

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