The New South Wales government has unveiled Australia’s most ambitious electric vehicle plan, which announces it will remove stamp duty on many electric vehicles, give some a $ 3,000 discount, and add $ 171 million of charging infrastructure across the state.

Announced as part of NSW’s next state budget, today’s news amounts to an investment of $ 490 million – nearly five times the amount released by the Andrews government in May.

While welcome, the announcement has a catch that will look familiar to Victorians: a road toll, which applies to owners of all-electric and plug-in hybrid electric vehicles, will come into play later this decade.

But there is more good news than bad news in the short term.

From September 1st Australian motorists who buy an electric vehicle at a price below $ 78,000 will be waived stamp duty (a savings of up to $ 3000).

Also from September 1st the first 25,000 to buy an EV priced below $ 68,750 also benefit from a $ 3,000 discount.

The Berejiklian government’s $ 171 million investment in charging infrastructure includes: $ 131 million for “ultra-fast” chargers – likely 350 kW units that can provide up to 400 kilometers of range in 15 minutes – along with grants of $ 20 million for target chargers and an additional $ 20 million for chargers at transportation hubs in NSW.

The promises go on, with the state government seeking to ensure that public chargers are found within 5 kilometers of households with limited off-street parking, while chargers are installed every 100 kilometers on major highways.

State lanes T2 and T3 will also be available to EV drivers during peak travel times.

The incentive package is part of NSW’s government commitment to achieve net zero emissions by 2050.

“We know that for new cars that are on the road for an average of 15 years, the vast majority of new cars sold in NSW must be electric vehicles by 2035 in order to achieve net-zero emissions by 2050,” said NSW Energy and Energy Environment Secretary Matt Kean.

“Our goal is to increase EV sales to more than 50 percent of new vehicles sold in NSW by 2030 and to be the vast majority of new vehicles sold in the state by 2035.”

The government predicts that sales of new electric vehicles will reach 52 percent by 2030-31.

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The Victoria state government hopes its incentive program – which offered $ 20,000 in subsidies for vehicles priced below $ 69,000 starting May 2 – will also increase new vehicle sales in the state to 50 percent by 2030.

Victoria’s plan:

• State government is aiming for 50 percent electric vehicles in the next nine years
• 20,000 subsidies for vehicles up to a value of $ 69,000
• 19 million US dollars are to be spent on charging stations
• There are currently 7,000 electric vehicles on the streets of Vic, but 300,000 new cars are sold every year
  READ MORE here on Vic Plan

NSW EV road tax comes in 2027

To cover the costs of its program and to offset the revenue from falling excise tax revenues, the NSW government will tax EVs 2.5 cents per kilometer and PHEV owners 2 cents per kilometer starting July 1, 2027 or a stake of 30 percent or more on electric vehicles of all new car sales in the state.

It is crucial that the road use tax replaces the stamp duty for EV and PHEV owners.

Electric vehicle road tax in Victoria is levied at the same rate but comes into effect much earlier – July 1, 2021.

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The industry welcomes NSW’s EV strategy

While Victoria’s electric vehicle strategy has been dubbed “the world’s worst electric vehicle policy” by brands and climate groups (though this was said in response to the road tax and before the $ 3,000 subsidy announcement), today’s news has garnered widespread praise.

Volkswagen Group Australia, whose leadership was open about the country’s poor fuel quality and the overwhelming climate strategy and incentives for electric vehicles, described the NSW government’s plan as a “model to drive Australia out of the automotive third world”.

VGA boss Michael Bartsch replied to the news today: “The Berejiklian government has shown its federal counterparts and its counterpart in Victoria the way to achieve mass ownership of affordable electric vehicles.

“There is no fault with Mr. Kean’s ambition in terms of his goals for private ownership and electric vehicle fleet adoption.”

The local branch of the Volkswagen Group previously announced that its new electric models such as the Volkswagen ID.3 hatch and ID.4 SUV, as well as the Skoda Enyaq SUV, are not currently on the local go-to-market and may not even be an option for our market before 2023.

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However, the news may not bring new electric Volkswagen and Skoda models to Australia sooner – Bartsch pointed to a discrepancy between European and Australian CO2 targets and the lack of a free trade agreement that brands headquartered in other regions enjoy. bring its most advanced models here.

“Europe’s binding CO2 targets, enforced through heavy penalties, will ensure that these markets continue to be the first in line for zero-emission vehicles,” said Bartsch, adding that demand for electrified VW models in Europe has begun To “exceed the offer”.

“Volkswagen continues to be disadvantaged as it is the only top 10 brand in Australia still subject to a tariff to protect local production, which was discontinued in 2017. The other mass market brands benefit from free trade agreements.

“While the federal government has decided to address Australia’s third world fuel quality, our country will remain a dump for technology that cannot be sold in advanced countries until it and other state governments emulate NSW’s vision.”

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In the meantime, Australian buyers interested in affordable electric vehicles can look to brands like Nissan and Hyundai, as well as new entrants in the form of the MG ZS EV and MG HS PHEV.

The hugely popular Nissan Leaf is in its second generation here, and the company’s Ariya electric SUV is on the local arm’s radar.

Likewise, Hyundai is rapidly expanding its local electrification offer. The brand already offers the Kona EV, Ioniq EV and Ioniq PHEV (along with an Ioniq Hybrid) and will shortly be launching its new medium-sized electric crossover Ioniq 5, congratulated the NSW state government.

“The stated goal of the New South Wales government is to make NSW the easiest state in Australia to buy and drive an electric vehicle. This strategy goes a long way in making this a reality. We congratulate the state government and recognize New South Wales than now. ” the pace for the rest of Australia, ”said John Kett, COO of Hyundai Australia.

“Significant investments in the charging network in both urban and regional areas are a welcome initiative. A sophisticated infrastructure gives customers confidence and removes the uncertainty of being able to charge electric vehicles on the go.

“Another encouraging move is to provide incentives to improve low EV adoption rates in Australia through tax breaks and incentives for customers to buy. We have seen government incentives stimulate adoption rates in advanced overseas markets, and NSW’s EV strategy is at global best practice in this regard, ”added Kett.

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While Hyundai is a relative newcomer to Australia’s top seller list, it is aggressive in its electrification strategy both here and around the world.

The Hyundai Motor Group – which includes Genesis and Kia – has announced that it will launch 44 electrified (EV and PHEV) models by 2025, and Hyundai plans to introduce “each” of the Hyundai and Genesis branded models here.

The Ioniq 5 will be launched in Australia this year, with the upcoming Ioniq 6 sports sedan and the large Ioniq 7 SUV to follow.

The Genesis G80 Electric is slated to appear here in 2022, and the not-yet-unveiled Genesis GV60 will follow.

Kia recently launched its Niro EV, PHEV and Hybrid models here, and the company’s fast new EV6 will hit the market in 2022.

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Nissan, a pioneer and loyal representative of the Australian electric vehicle scene, has described today’s news as “extremely encouraging”.

“These crucial measures are good for consumers, good for the market and ultimately good for the (NSW) state’s own statutory net zero targets,” said Nissan Australia boss Stephen Lester.

“These types of guidelines not only accelerate the electric vehicle transition now, but also put Australia in a stronger position to prioritize the adoption of new vehicle technologies.

“In addition, with the announced transition targets for its own fleet due to government purchases, the NSW market will see a major upgrade in electric vehicles, but will ultimately also benefit customers by offering a dynamic used vehicle market in the coming years,” he added.

In Nissan’s credit, the Japanese company has a major manufacturing facility in Australia, with its Nissan Casting Australia business making two die-cast aluminum parts that are then exported to Japan to be built into each Leaf EV.

News of this program was first announced in 2015 and remains an important part of the automaker’s global production. You can read about it here.

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Another brand focused on affordable EV space is MG, which offers its small ZS EV and the medium-sized HS PHEV.

Peter Ciao, the brand’s CEO for Australia and New Zealand (the latter recently announced its own major EV strategy) said the NSW government’s plan was a “vital and welcome initiative”.

“At MG, we believe in Electric For Everyone, and this government subsidy program will enable many more people to experience the benefits of the electric motor for themselves,” said Ciao.

“We look forward to offering our assistance to the Minister’s Office for Energy and the Environment as MG accelerates its own plans to support infrastructure rollout in NSW and across Australia.”

For more information on Australia’s growing electric vehicle market, check out our coverage at the links below.