Victorian Govt starts to pay back EV buyers who missed out on subsidy

Electric vehicle buyers who missed out on a $3000 discount due to the Victorian Government's "confusing" subsidy scheme, are now finally receiving their cash back.

Solar Victoria, on behalf of the Victorian Government, is now in the process of rolling out the subsidy to buyers of zero emissions vehicles (ZEV) after it was found only one manufacturer had been passing the savings directly on to customers.

The scheme was introduced on May 2, 2021 and covered any sub-$68,740 ZEV purchased from the starting date, with the idea being dealers would knock off $3000 from the vehicle's price (before on-road costs) instead of customers having to apply for the rebate themselves.

However, as WhichCar previously revealed, due to confusion over how the process worked, most dealerships selling cars under the price limit were not passing the subsidy directly on to customers – leaving Government agency Solar Victoria to repay the owners itself. According to the organisation, only one manufacturer has been confirmed as passing on the subsidy so far.

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Solar Victoria's letter to customers, outlining the steps of the process

In a letter to new ZEV owners seen by WhichCar, Solar Victoria said has been working with carmakers to try and simplify the process.

"We've worked closely with vehicle manufacturers and automotive industry peak bodies to clarify issues on how the ZEV subsidy will operate and ensure it is easy to access for customers," it said.

"We're close to finalising arrangements which will allow future customers to access the subsidy in-store at the time of purchase.

"One vehicle manufacturer is already passing on the subsidy in this way and we'll be making arrangements with other companies with eligible models in coming weeks."

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Solar Victoria's application process for ZEV owners

A Solar Victoria spokesperson told WhichCar the direct rebate from the Government agency to buyers who hadn't already been given the discount by dealers would only last until the point-of-sale process is properly implemented, though no specific time frame has been given.

"This is an interim payment method to ensure no one misses out if they purchased an eligible ZEV between May 2 and when the point-of-sale process is implemented," said the spokesperson.

"It also means they don’t have to wait longer for payment. When the point-of-sale discount is implemented in the coming weeks, the subsidy will be automatically applied on purchase for eligible buyers.

"We know that more than 600 eligible ZEVs have been purchased since the subsidy was announced.

"We expect to see a proportion of these buyers apply for the subsidy."

Although it confirmed 600 people have bought EVs under the scheme, it has 'received interest' from more than 1000 Victorians who want to transition to electric.

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An example of the odometer reading submission ZEV owners must submit to VicRoads

Despite the setbacks and delays in the subsidy's introduction, Solar Victoria said applications will be processed quickly.

"We’ll be working hard to process applications as quickly as possible. This is a streamlined process, and likely to enable a turnaround of five to 10 days," they added.

A source told WhichCar Victorian car dealers had been given no notice of the subsidy scheme coming into effect, finding out through the media just hours before it was brought into effect.

While they conceded the subsidy is supportive of encouraging the public to buy EVs, they said the roll-out was "disorganised" and dealers were hesitant to apply the discount directly as it would mean a direct loss of income for the business, at least until the rebate arrived over two months later.

In contrast, they added the New South Wales State Government was proactive in its talks with manufacturers in the lead up to the implementation of its own EV scheme.

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With the Victorian Government's subsidy, the MG ZS EV costs just $40,990 drive-away, the cheapest EV on the market

In addition to the subsidy scheme, as previously reported, Victorian ZEV owners started paying a road user charge of 2.5c/km for an EV or 2c/km for hybrids from July 1 – having to submit their odometer readings to VicRoads with photographic evidence of distanced travelled in order to avoid their vehicle registration being cancelled.

A letter from VicRoads to one new ZEV owner seen by WhichCar has revealed that travel on private roads or agricultural lands is exempt from the charge – but only when odometer readings or logbook entries are kept as evidence to prove which travel was public and which was private.