NSW to backdate EV rebate payments

New South Wales has pledged it will ensure incentives on new electric vehicles purchased in the state will be backdated once the legislation is passed through its Parliament.

Due to the current COVID-19 outbreak, the NSW Parliament has not been able to sit – meaning the Electric Vehicles (Revenue Arrangements) Bill 2021, has been delayed.

Earlier this year NSW announced a $490 million Electric Vehicle Strategy, with new EV buyers able to claim rebates worth $3000 and refunds on stamp duty from September 1 this year.

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NSW Treasurer Dominic Perrottet, Transport and Roads Minister Andrew Constance, and Energy and Environment Minister Matt Kean, announced on Wednesday the support measures will be backdated – so long as Parliament passes the legislation.

“The NSW Government remains fully committed to the Electric Vehicle Strategy and delivering on what we promised for this emerging industry,” Mr Perrottet said.

“We will keep to our September 1 go-live date, however, it is important both the industry and those considering purchasing an EV understand the availability of incentives is contingent on the Electric Vehicles (Revenue Arrangements) Bill 2021 passing Parliament.”

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“It’s incumbent upon all political parties to get behind this Bill and this industry.”

If legislation passes, retrospectively from September 1, 2021, EV purchasers will be able to apply for a refund for stamp duty on battery and hydrogen fuel-cell vehicles priced up to $78,000 and a rebate of $3000 for the first 25,000 eligible EVs under $68,750.

“Electric vehicles are the way of the future and that’s why we need to reduce the barriers and create the right market conditions to ensure we are not left at the back of the starting grid,” Mr Constance said.

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“This package not only reduces the costs of purchasing an electric vehicle, but also boosts competition and signals to the market NSW is ready for a greater number of new models.”

Mr Kean said the NSW EV Strategy is fundamental to NSW achieving Net Zero Emissions by 2050.

“For that reason, we have applied retrospectivity to our policy, to ensure the market is not held up due to the COVID-19 pandemic.”

The decision to backdate the incentive payments has been praised by the Federal Chamber of Automotive Industries (FCAI).

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“This announcement gives certainty that rebate claims worth $3000 and stamp duty refunds will be able to be accessed retrospectively from September 1, 2021, providing the NSW Parliament passes the legislation in its entirety,” Chief Executive Tony Weber said.

“I’d like to thank members of the Government for working with us on this. The NSW Government EV Strategy has the potential to deliver a financial reform and automotive incentive package that sets the precedent for other governments to follow in its drive to increase electric vehicle uptake.”