New South Wales could soon become the second state in Australia to axe its electric vehicle (EV) rebates following remarks from Premier Chris Minns.
As reported by the Australian Associated Press and The Driven, Mr Minns has said he’s considering scrapping the EV subsidies as part of the upcoming budget.
“We’ve got a subsidy in place that we think is pushing up the costs of EVs and we’re seeing EVs take up from about two per cent to eight per cent in the marketplace,” said Mr Minns.
“Given all of those moving policy changes, we’re going to have to say something about it in the… budget, which is due in a month’s time, but any government faced with that set of policy circumstances would have to take it into consideration.”
Mr Minns’ remarks come after the New South Wales treasury estimates found there was no clear evidence the states’s EV rebates were actually boosting EV sales.
New South Wales residents who current purchase a new EV under $68,750 attract a $3000 rebate on the purchase price, while new and used EVs under $78,000 are exempt from stamp duty.
In 2021 when the New South Wales State Government announced the EV rebates, it committed to delivering 25,000 rebates and had paid out 7821 of them by July 31 this year.
Beyond this, Mr Minns also said the New South Wales State Government is waiting for the outcome of a High Court challenge to Victoria’s zero and low emission vehicle (ZLEV) road-user charge, which currently applies to EVs, hydrogen fuel-cell vehicles (FCEVs) and plug-in hybrids (PHEVs).
The New South Wales State Government had previously committed to introducing a similar charge during 2027.
Victoria was the first Australian state to remove its $3000 EV rebate in June this year, as the debt-laden state government looked at ways to cut back on spending.
The decision to prematurely ditch the rebate in Victoria was quietly slipped into the May State Budget papers.
Other Australian states continue to offer EV incentives, including Queensland, which recently doubled its household EV rebate from $3000 to $6000; Western Australia with a $3500 rebate; and South Australia with a $3000 rebate.
To read a full detailed guide of what EV buyer incentives are offered across Australia, click here.