Victoria extends $3000 EV subsidy for an extra 2600 vehicles

The Victorian Government has injected an extra $7.2 million into its electric vehicle incentives scheme, allowing a further 2600 potential buyers to enjoy a $3000 rebate on their purchase.

First coming into effect on May 2, 2021, the Victorian subsidy was introduced for the first 20,000 electric vehicles (EVs) or fuel-cell electric vehicles (FCEVs) sold under $68,740 before on-road costs.

Despite a few shaky opening months in which buyers were not directly paid the subsidy by dealers and forced to go through Solar Victoria independently to get their $3000 discount, the first allocation of funds is understood to be exhausted.

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The announcement has been welcomed by local peak bodies, with Federal Chamber of Automotive Industries CEO Tony Weber saying the zero-emission vehicle subsidy is good news for prospective buyers, however a broader approach to lowering emissions is still necessary.

“The Victorian Government’s announcement of an additional $7.2 million in purchase incentives for electric vehicles is welcome news for motorists who have been considering the move to an electric vehicle," said Weber.

“This additional spending complements the Government’s charging infrastructure investment across the state.

“Our overall policy objective is to reduce CO2. While subsidies for specific technologies are welcome, our journey to reducing emissions in the transport sector needs to be a holistic one.

“The pathway to reducing emissions in the medium term will rely on a range of low emission technologies that include plug-in hybrid, hybrid and even highly efficient internal combustion engines."

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In addition to the subsidy, Victoria's EV incentives include a $100 discount on annual registration fees and reduced stamp duty for all zero-emission vehicles.

However, despite the strengths of its incentives, Victoria was also the first Australian state or territory to introduce a road user charge as of July 1, 2021, taxing zero-emission vehicles at 2.5 cents per kilometre as well as plug-in hybrid vehicles (which still have to pay the fuel excise) at 2 cents per kilometre.

The Victorian Government has previously announced its commitment for half of all new-car sales by 2030 to come from electric vehicles, helping it to achieve net zero by 2050.