NSW to end EV rebate early to focus on charging infrastructure

The New South Wales Government will abolish the $3000 electric vehicle rebate earlier than promised, but will invest in installing more charging infrastructure.

Ahead of the state’s new budget announcement on Tuesday, treasurer Daniel Mookhey confirmed to The Sydney Morning Herald that it will abolish the EV purchasing subsidy and stamp duty exemption on January 1, 2024.

It will save taxpayers $527 million.

When the policy was introduced in September 2021, the subsidy was promised to last for the first 25,000 eligible applicants. However, according to Revenue NSW [↗], it has paid only 8391 rebates as of 31st August 2023.

The incentive covered any new EV priced less than $68,750 including the goods and services tax, dealer delivery fees, and accessories – but excluded government charges, such as registration and compulsory third party insurance.

This lowered the price barrier for NSW residents to buy electric models, such as the MG 4 hatch, BYD Atto 3 SUV, and Tesla Model 3 sedan.

It’s believed buyers will still be eligible for the rebate if they sign the purchase contract – but don’t need to have the vehicle delivered – before the 2024 deadline.

NSW will follow Victoria, which ditched its subsidy earlier this year, with only South Australia and Queensland still offering rebates. As at 15 September, the former has only 5200 rebates remaining, according to Treasury SA [↗].

2

NSW to improve EV charging access

Instead of subsidising EV purchases, the NSW government plans to invest an additional $260 million into EV charging infrastructure.

It is said to be targeted for drivers who can’t access a plug at home, including renters, those living in apartments, and regional areas.

NRMA spokesperson Peter Khoury told WhichCar it supports the policy move.

“The [charging] infrastructure investment is critical. The limited resources of the government are best served partnering with the private sector to address that shortfall,” Khoury said.

He added policies that improve charging accessibility, especially for those living in older homes and apartments who are unable to fit electrical equipment, is "going to be really important to make it a more viable option for people who are thinking about buying an EV, but worried about day-to-day charging".

Khoury doesn’t expect EV sales to decrease after the rebate ends, given it hasn’t slowed in Victoria and more models are continuing to enter the market to further drive prices down.

The announcement comes on the same day Sydney experienced a record 30-plus Celsius heatwave, which is unusual for Spring (Bureau of Meteorology [↗]).