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In Australia, fuel efficient vehicles attract less Luxury Car Tax, leading to a saving of up to $3,920. The Luxury Car Tax is levied at 33c on each dollar above a certain threshold. For most cars that threshold is $71,849 in 2022, however for fuel efficient vehicles including the Tesla Model S, Model 3, Model X, and Model Y, that threshold is $84,916.

New zero emissions vehicles (including electric vehicles) are eligible for a full stamp duty exemption. This applies to a vehicle that is purchased brand-new and has not previously been registered, or a demonstrator disposed of by a licensed vehicle dealer within one year of the date the demonstrator was first registered in the ACT.

New or used zero emissions vehicles purchased or acquired in the ACT from 24 May 2021 and before 30 June 2024 will receive two years of free registration. If eligible, the registration component of vehicle registration fees will be waived. All other relevant fees, charges, or levies related to registering a vehicle will remain.

From 1 September 2021, the NSW Government will offer a $3,000 rebate on the first 25,000 new battery electric vehicles with a Vehicle Subtotal (dutiable value) of less than $68,750 (including GST). The rebate cannot be used for the procurement of used and demonstrator vehicles.

The stamp duty exemption is available for new and used electric vehicles with a Vehicle Subtotal (dutiable value) up to and including $78,000 (including GST). From 1 November, eligible electric vehicles will be able to use Transit T2 and T3 lanes until at least 31 October 2022.

For eligible vehicles purchased from 1 September 2021, the EV rebate is available to New South Wales residents and businesses with premises in New South Wales. Vehicles procured under a novated leasing arrangement will not be eligible for the EV rebate.

Applications for this subsidy opened on 1 November 2021.

Electric and hybrid vehicles pay reduced stamp duty: $2 per $100 up to $100,000 (dutiable value), and $4 per $100 value thereafter (compared to up to $6 per $100 for more polluting vehicles).

From 28 October 2021, the SA Government will offer a $3,000 rebate on the first 7,000 new battery electric vehicles with a Vehicle Subtotal (dutiable value) of less than $68,750 (including GST). The subsidy is also available for demonstrator vehicles if the criteria of a demonstrator for the purposes of a stamp duty exemption are met. The rebate cannot be used for the procurement of used vehicles.

Additionally, new battery electric vehicles with a Vehicle Subtotal (dutiable value) of less than $68,750 (including GST) are eligible for three years of free registration (registration fee component only; other charges apply). The exemption is available for new electric vehicles first registered from 28 October 2021 and up to 30 June 2025.

For eligible vehicles purchased from 28 October 2021, the EV rebate is available to South Australian residents and businesses with premises in South Australia. Subsidies are limited to one per individual person and two per business. The vehicles will be required to be registered in South Australia and must not have received a rebate in another jurisdiction. There is no restriction on when a vehicle was purchased to be eligible for a subsidy. Vehicles purchased before 28 October 2021 and registered for the first time after 28 October 2021 will be eligible.

Subsidy application form can be accessed here.

From July 1 2021, stamp duty is waived for all new and used electric vehicles. The initiative will run for two years and will reduce the initial purchase costs of EVs.

From 2 May 2021, the VIC Government will offer a ZEV Subsidy of $3,000 on new zero emissions vehicles with a Vehicle Subtotal (dutiable value) of less than $68,740 (including GST). The subsidy is limited to 4,000 registrations in Victoria at this amount. A further 16,000 incentives will then be made available, however details for this stage of the scheme are yet to be confirmed.

Additionally, electric vehicles are exempt from the “luxury vehicle” rate of stamp duty, paying a flat rate of $8.40 per $200 of market value. All electric vehicles also receive a $100 annual discount on vehicle registration.

For eligible vehicles purchased from 2 May 2021, the ZEV Subsidy is available to Victorian residents and businesses with premises in Victoria. Subsidies are limited to one per individual person and two per business.

The subsidy will be deducted from the total Drive Away Price on the final tax invoice. If eligibility is unable to be confirmed, any quotations or invoices inclusive of the subsidy will become void.

From 10 May 2022, the WA Government will offer a ZEV Rebate of $3,500 on the first 10,000 new zero emissions vehicles with a Vehicle Subtotal (dutiable value) of $70,000 or less (including GST). The rebate is also available for demonstrator vehicles if registered on or after 10 May 2022. The rebate cannot be used for the procurement of used vehicles.

For eligible vehicles registered from 10 May 2022, the ZEV Rebate is available for Western Australian residents and businesses with premises in Western Australia. Vehicles procured under a novated leasing agreement are eligible for the rebate.

Applications for this rebate opened on 10 May 2022 and successful applicants will begin to receive payments from 1 July 2022.