NSW offers $480Mn EV package, waives stamp duty on EVs

In a bid to achieve net-zero emissions by 2050, the Government of New South Wales has committed to invest USD 480 million in a recent budget to encourage the adoption of electric vehicles, including limited USD 3,000 rebates along with removal of stamp duty on certain new vehicles.

These reforms will help reduce the cost of new electric automobiles by as much as USD 5,000 and with the proposed roll-out of charging stations, make the region highly supportive of low emission vehicles. In addition to above, a road user charge will also be introduced for EVs however it will be deferred by the first half of 2027 or when electric cars make up for at least 30% of the new car sales.

The 2.5 cents km/charge which is also being levied in South Australia and Victoria is a way to regain certain revenue lost to incentives and partly replace the fuel excise that electric car drivers do not pay.

The latest move forms a part of New South Wales government’s USD 480 million electric vehicle strategy that focuses on having nearly half of all the new EV car sales by 2030 and offering the infrastructure to supplement it.

For the record, the program follows the state government’s decision of a USD 380 million Electricity Infrastructure blueprint that includes extending 12 gigawatts of green energy and 2 gigawatts of storage through 2030.  

According to reports, at present, the state’s transport industry is responsible for nearly 20% of total emissions. Seemingly, the EV strategy has been well received by the EV sector, environmental groups, and manufacturers that claim that the Australian states are transitioning to become a part of global revolution.

Dominic Perrottet, NSW Treasurer, the comprehensive strategy aims at ensuring that there is a right mix to incentivize the adoption of electric cars along with ensuring that everyone who drives it contributes to maintaining and financially supporting them.

Mr. Dominic added that the strategy introduced a long-term major tax reform with the permanent phasing out of stamp duty on EVs along with a transition to a sustainable and far per kilometers road user charge on electric cars.

Source Credit: https://www.innovationaus.com/nsw-unveils-480m-electric-vehicles-package/