The South Australian treasurer has announced the state’s $3000 electric vehicle subsidy will be axed on January 1, 2024.
The move was announced as part of the 2023/24 mid-year budget review.
Treasurer Stephen Mullighan said in the report that by removing the subsidy, it will save the government $12 million over two years.
Mr Mullighan claims with the Commonwealth Government’s updates to the fringe benefits tax and cuts to import tariffs, the $3000 EV subsidy is “no longer necessary”.
Buyers who have already placed an order on an electric vehicle or plan to do so by December 31, 2023 will still be eligible for the rebate.
South Australia’s three-year registration exemption will remain for drivers until June 30, 2025.
Residents who purchase an electric vehicle with a sticker price below $68,750 can apply for a registration exemption which the government says provides a saving of $148 per year.
Drivers who have purchased an electric vehicle between October 28, 2021 and December 31, 2023 but are yet to claim their $3000 rebate are still able to do so before the new year.
According to the treasurer, only around 2500 subsides were paid out out of the 7000 budgeted for South Australian residents.
“What we are now seeing is a far greater number on electric vehicles purchased in South Australia beyond those transactions that attract the subsidy,” said Mr Mullighan.
“We are seeing many more sales of electric vehicles well beyond that price point and of course, given the Commonwealth Government’s more recent subsidies which are far greater than the state government subsidies, this subsidy from the state is no longer playing an important role in informing someone’s decision making.”
“The subsidies for electric vehicles that have been offered by the states and territories have been completely and utterly subsumed by the new incentives which have been put in place by the new Albanese federal Labor government,” said Mr Mullighan at a press conferene earlier today.
“We are talking Commonwealth incentives in the order of four times the level of the state government’s entered here in South Australia.
“Our contributions are no longer making a meaningful difference to people’s decision making when it comes to purchasing new cars.”
Victoria and New South Wales both dropped their subsidies earlier this year.