Queensland's $3000 EV subsidy in effect from today

UPDATE, July 1, 2022: Queensland's $3000 EV subsidy in effect from today

The Queensland Government's electric vehicle rebate scheme is now in effect, with prospective buyers offered a $3000 discount on their purchase.

Announced in March as the Palaszczuk Government's response to fuel prices hitting $2 per litre, the start of the new financial year has put the $3000 subsidy into effect, applying to the first 15,000 battery electric vehicles purchased in the state.

However, there are some minor caveats – just like other states, the rebate is on the RRP (list price) plus the delivery charge and optional extras, meaning cars such as the Hyundai Kona Highlander Standard Range (usually $58,000 before on-road costs) are excluded.

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March 16, 2022: Queensland to offer $3000 subsidy for EVs from July 1

Queensland has become the latest state to offer a subsidy on the sale of an electric vehicle in response to soaring petrol prices across Australia.

Premier Annastacia Palaszczuk made the announcement on Wednesday that her Government will be offering $3000 off the cost of a new EV as of July 1 this year as part of a $55 million package.

But a cap of $58,000 excludes a number of Australia’s top-selling EVs, such as the Tesla Model 3, which has recently undergone a number of price increases across its range.

For the second time in recent weeks, Tesla has jacked up the cost of its most popular model, now standing at $63,900.

However, it will cover vehicles such as; the MG ZS EV, BYD Atto 3, and Nissan Leaf.

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While QLD is set to offer the same discount as New South Wales, Victoria and South Australia, the price limit is around $10,000 lower – with NSW’s cap sitting at $68,750, VIC’s at $68,740 and SA’s at $68,750.

The amount of vehicles the subsidy applies to in QLD however is relatively on par, with Premier Palaszczuk stating it will be available on 15,000 cars, compared to 25,000 in NSW, 20,000 in VIC and 7000 in SA.

Claiming the introduction of the policy is both a response to petrol spiking above $2.20 a litre, as well as the increasing need to slash emissions.

“The skyrocketing price of petrol is putting enormous strain on household budgets,” Palaszczuk said.

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“I know there are plenty of Queenslanders out there who want to make the switch to electric. We all want to see reduced emissions and a cleaner environment. That’s why we are going to do what we can to make the cost of electric vehicles that little bit cheaper. We’re making electric vehicles more affordable and accessible for more Queenslanders.

“Global warming increases the frequency and severity of extreme weather as we have seen all too clearly in the past two weeks. This announcement is a key part of our Zero Emission Vehicle Strategy: the goal is to reduce our emissions and reduce the impact of climate change.”

In addition to offering a subsidy, the State will also provide a further $10 million to build more charging stations.

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Behyad Jafari, CEO of the Electric Vehicle Council

"Queensland was the first Australian state to develop an EV strategy and today's announcement shows there's still strong momentum toward an electric future in the Sunshine State," said Electric Vehicle Council chief executive Behyad Jafari.

"Instead of filling up on foreign oil, Queensland drivers should be filling up on the abundant sunshine and wind their state offers.

"We know Queensland drivers already have great enthusiasm about the idea of switching to an EV, this package will help convert a lot of that enthusiasm to action.

"Queenslanders understand the myriad benefits of electric vehicles and that's been emphatically underlined recently with all the petrol price volatility. This kind of government support will give drivers confidence to make the move now instead of putting it off.

"Now what we need is for the Federal Government to back Queensland's efforts and support it with overdue reform like the introduction of fuel efficiency standards."

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The Federal Chamber of Automotive Industries' Chief Executive, Tony Weber, said the grants will be a welcome support to potential EV buyers, but questioned the State's target of 50 per cent of new passenger vehicles being made up of EVs by 2030 and 100 per cent by 2036.

“The FCAI believes the Government’s continued focus on developing EV recharging infrastructure and fleets is vital in supporting the penetration of EV’s into the Queensland market.

“[However] the primary policy objective is to reduce CO2 emissions and our pathway to this objective in the transport sector needs to be a holistic one. Electric vehicles alone will not achieve this in Australia.

“The pathway to reducing emissions through to the mid-2030s will rely on a range of low emission technologies that include plug-in hybrid, hybrid and even highly efficient internal combustion engines in addition to pure EVs.

“Improvements in fuel quality and the introduction of a broad based and nationally consistent road user charge scheme, as well as a vehicle emissions target, are all needed to bring the best low and zero emissions technology to Australia."