There’s good news for NSW-based Electric Vehicle (EVs) shoppers
The NSW government will abolish stamp duty on Electric Vehicles and offer drivers subsidies of up to $3000 to increase consumer uptake of Electric Vehicles (EVs).
As part of a plan to ensure that 50 percent of new car sales by 2030-31 are EVs, the NSW government will:
1. Provide a consumer subsidy of up to $3000 for the first 25,000 purchasers of battery and hydrogen fuel cell electric vehicles under $68,750 purchased from September 1, 2021
2. Phase-out stamp duty on eligible EVs priced under $78,000 purchased from September 1, 2021
3. Transition the entire NSW Government passenger fleet to EVs by 2030
4. Invest $171m ultra-fast charging stations
5. Introduce a distance-based road user charge (RUC) for eligible EVs of 2.5c/km from the earlier of July 1, 2027 or when EVs reach 30 percent of new vehicle sales
A number of manufacturers including Nissan, Hyundai and MG offered their support of the measures which were announced as part of NSW state budget on June 20.
NSW Minister for Transport and Roads Andrew Constance said the EV Strategy would not only help the NSW Government take action on climate change, but “generate savings for consumers” through more affordable initial prices and ongoing ownership.
“Electric vehicles are not only cheaper to run and quieter on our roads, but they also reduce both carbon emissions and air pollution which results in dramatically improved health outcomes for our communities,” Constance said.
“As the world’s right-hand-drive market moves to manufacturing electric vehicles, we have to make sure we have the policies in place to give industry the green light to increase model availability and cut entry price points.
“The average NSW driver will save around $1000 a year in running costs by switching to an EV, and those savings can be up to $7500 a year for businesses, taxis and freight.”
The announcement by the NSW Government comes off the back of a similar subsidy introduced in Victoria.
However, the Victorian Government was roundly criticized for pairing its new $3,000 subsidy with the immediate introduction of a road user charge for EV drivers. NSW drivers will only have to pay a road user charge by 2027, or once electric vehicles make up 30 per cent of new car sales – whichever occurs first.
Currently, EVs make up less than 2% of Australian new car sales, inclusive of the sales of Australian market leader Tesla.
New electric cars on sale in Australia for under $68,000 and eligible for the NSW subsidy according to the carsales New Car Showroom (prices based on postcode 2000):
MG ZS EV – from $43,990 (drive-away)
Nissan Leaf – $53,190 – $64,990 (drive-away)
Hyundai Ioniq – $53,304 – $57,544
MINI Hatch $61,308 – $68,573
Hyundai Kona EV – $66,984
Kia Niro – $67,490
Tesla Model 3 – $67,794
Renault Kangoo ZE – from $49,990
Hot tip for NSW dealers: Ensure that you highlight EV inventory eligible for the subsidy in your carsales listing comments after September 1
Subsidies potential boon for brands and dealers
The introduction of subsidies in NSW is likely to spur interest in EVs, spelling good news for brands and dealers selling EVs.
Indeed, in the recent carsales study Moving Electric Vehicles Forward, survey respondents were favourable to considering the purchase an EV with the introduction of government subsidies, with initial purchase cost the number one barrier to EV adoption.
In the study, 62% of survey respondents that have not considered an EV would be more likely to buy if government subsidies were made available.
The full study is available to download here.
Consideration and interest grows for EVs on carsales
The automotive industry is fast-tracking electrification as governments around the world seek to decarbonize economies to meet stringent emissions regulations, and spur economic activity post the peak of Covid-19.
Reflecting the pace of change, the carsales Editorial team published over 130 EV reviews, news and advice articles to carsales.com.au between January – March 2021 – almost double the volume published in the same period of 2020, and five times that of 2019.¹
And consumers have voted with their clicks, with page views for carsales EV content increasing 134% year-on-year, compared to the same period of 2020.¹
Key carsales EV advice content to break down barriers and help consumers make the switch to EVs now includes:
Dummies’ guide to electric vehicles
Dummies’ guide to electric vehicles
How long does it take to charge an EV?
How safe are electric cars?
Which electric cars have the longest driving range?
How much does it cost to maintain an electric car?
What sort of plug does my electric car take?
Will I enjoy driving an EV?
What is my used electric car worth?
How to take care of your electric car’s battery
How do electric cars work?
Despite the challenges presented by the COVID-19 pandemic,
2020 was still a year of progress for Australian EV sales. The 1769 EVs reported sold to VFACTS was an increase of 16.2% on 2019, and contrasted the 13.7% decline of the broader new car market.
And the EV growth story has continued so far in 2021. 436 EVs were registered nationally in May according to the Federal Chamber of Automotive Industries’ VFACTS report, a 323.3% increase on the same month in 2020 and likely spurred by the introduction of EV subsidies in Victoria.
Both 2020 and May 2021 sales results exclude the sales of Australian EV market leader, Tesla, which sold more EVs in 2020 than every other brand combined, thanks to the popularity of its mid-sized Model 3 sedan.
Further reading
Under 24s not engaged with Electric Vehicles
Moving Electric Vehicles Forward study unveils the latest on EVs in Australia
The latest on Electric Vehicles
