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Green light for electric vehicle strategy


Motorists in NSW are now closer than ever before to getting behind the wheel of their first electric vehicle (EV) with the NSW Government’s NSW EV Strategy legislation passing through the NSW Parliament.

The NSW Government has committed $490 million towards EVs, helping to cut taxes, provide $3,000 rebates and install ultra-fast EV chargers right across the State.

Premier Dominic Perrottet said these incentives make NSW the best place in Australia to buy and drive an electric vehicle.

“This is a comprehensive suite of measures, which ensures we have the right mix in place to boost the take-up of electric vehicles and give people access to the latest technology,” Mr Perrottet said.

“The strategy also starts us down the road of long-term tax reform as we embark on phasing out stamp duty on electric vehicles and making sure everyone who drives on our roads contributes to their funding and maintenance.”

Treasurer and Minister for Energy and Environment Matt Kean said the NSW EV Strategy is nation-leading and will ensure at least 50 per cent of new cars sales are EVs by 2030.

“To achieve net zero emissions by 2050, the majority of new cars sold in NSW need to be EVs by 2035,” Mr Kean said.

“This is the beginning of an EV revolution in NSW, with more drivers set to benefit from lower taxes and $3,000 rebates on their next EV purchase.”

“Our Strategy is all about helping more drivers to benefit from the latest and best driving technology and I welcome the cross party support for the legislation.”

Drivers who have registered a new, eligible EV after 1 September 2021 can apply for a refund of the stamp duty and one of the 25,000 rebates worth $3,000. Applications will open on 1 November 2021.

Also from 1 November, eligible electric vehicles will be able to use Transit T2 and T3 lanes until at least 31 October 2022, making travelling in an EV even easier.

Minister for Transport and Roads Rob Stokes said the EV Strategy would help to reduce air and noise pollution created on the State’s roads.

“The transport sector currently makes up one-fifth of carbon emissions in NSW, with almost half of those coming from passenger vehicles,” Mr Stokes said.

“This policy will give the green light to industry to increase model availability and cut the costs of EVs.”

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Key features of the NSW EV Strategy

Removing stamp duty for EVs
 Battery and hydrogen fuel cell EVs up to $78,000 will no longer pay stamp duty on registration from 1 September 2021.
 All other EVs, including plug-in hybrids, will no longer pay stamp duty from 1 July 2027 or when EVs make up at least 30 per cent of new car sales, whichever comes first.

Providing EV rebates
 $3,000 rebates will be available for the first 25,000 new battery or hydrogen fuel-cell EVs under $68,750 sold and then registered from 1 September 2021.

Ambitious NSW Government EV target
 NSW Government car fleet will be targeting an all-electric or hydrogen fuel-cell vehicle procurement by 2029-30, including an interim target of 50 per cent by 2025-26.

Targeting a comprehensive EV charging network
 All households in areas with limited off-street parking will live no more than 5km from an ultra-fast charger.
 EV super highways: ultra-fast chargers will be installed at 100km intervals on average along major NSW highways.
 EV commuter corridors: ultra-fast chargers will be installed at 5km intervals along major roads in Sydney.
 Rolling out more chargers at transport locations, for example commuter carparks.

EV Fleets Incentive
 This incentive, via a reverse auction, will support fleet managers to transition
their passenger vehicles and light commercial vehicles to battery and
hydrogen fuel-cell electric vehicles.

Transit lanes
 Full battery and hydrogen fuel-cell electric vehicles will be given access to transit T2 and T3 lanes from 1 November 2021 until at least 31 October 2022.

EV tourism
 Designated ‘EV Tourist Drives’ will be introduced across NSW, promoting scenic regional driving routes that have charging infrastructure to support driving regional holidays.
 $20 million in grants will be available for tourism businesses such as regional hotels, restaurants and wineries to install destination chargers.

Road user charge
 Road user charge of 2.5c/km in today’s dollars (or 2c/km for plug in hybrid EVs) will be deferred to start on the earlier of 1 July 2027 or when EVs make up at least 30 per cent of new car sales. This will replace the revenue forgone through stamp duty exemptions, as well as partially offsetting the erosion of fuel excise, which EV drivers do not pay.