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ew South Wales (NSW) is charting a new course in its commitment to electric vehicles (EVs) by discontinuing the $3000 EV rebate program earlier than initially anticipated. In lieu of these incentives, the state government is channelling resources towards an ambitious expansion of itsEV charging infrastructure network.
In a precursor to its upcoming budget unveiling, Treasurer Daniel Mookhey has officially announced that the EV purchasing subsidy and stamp duty exemption will cease as of January 1, 2024. This strategic pivot is projected to translate into significant savings of $527 million for taxpayers.
Originally launched in September 2021, the subsidy was initially designed to benefit the first 25,000 eligible applicants. However, recent data from Revenue NSW indicates that only 8391 rebates had been granted by the close of August 31, 2023.
Under this program, the incentive covered new EVs with a price tag below $68,750, encompassing the goods and services tax, dealer delivery fees, and accessories, while excluding government charges such as registration and compulsory third-party insurance. This fiscal relief effectively made EVs, like the MG 4 hatch, BYD Atto 3 SUV, and Tesla Model 3sedan, more accessible to NSW residents.
It is noteworthy that buyers are expected to remain eligible for the rebate provided they ink the purchase contract before the 2024 deadline, irrespective of whether the vehicle has been physically delivered.
NSW's decision to phase out EV rebates places it in alignment with Victoria, which implemented a similar policy earlier this year. Currently, only South Australia and Queensland continue to offer EV purchase rebates, though South Australia reports just 5200 rebates remaining as of September 15, according to Treasury SA.
In lieu of subsidising individual EV purchases, the NSW government is committing an additional $260 million towards an extensive enhancement of its EV charging infrastructure. This substantial investment is earmarked to serve residents who lack access to home charging solutions, including renters, apartment dwellers, and those residing in regional areas.
NRMA spokesperson Peter Khoury has lauded this strategic shift, underlining the critical importance of advancing charging infrastructure. Khoury maintains that the government's collaboration with the private sector represents an effective approach to address the existing gaps in charging accessibility.
Khoury emphasises that policies enhancing charging convenience, particularly for individuals inhabiting older residences or apartments without adequate electrical infrastructure, will play a pivotal role in making EV adoption a more feasible option for those contemplating a switch to electric vehicles.
Khoury remains optimistic about the future of EV sales even after the rebate program is discontinued. He cites the sustained growth of the EV market in Victoria and the continuous influx of budget-friendly EV models, which are steadily driving down the overall cost of ownership.
This policy redirection coincides with a record-breaking heatwave in Sydney, underscoring the increasing importance of sustainable transportation solutions amid mounting climate concerns.
