Yesterday, the NSW Government released its 2025-26 Budget, focused on ‘restoring essential services, rebalancing public finances, and laying the foundation for long-term growth’.
The key priority areas in 2025-26 for NSW include, working across the Federation on the Productivity Commission’s review of the 2018 amendments to GST legislation, road user charging and disaster recovery and resilience funding.
The AADA continues to have strong concerns with the implementation of a state-based road user charge as announced by NSW. Following the invalidation of Victoria’s Road User Charge on EVs, the AADA will continue to advocate for a national approach to road user charging to ensure national consistency.
Key budget announcements for dealers include:
Road User Charges
Announced in 2021, NSW continues to prepare for the introduction of a Road User Charge (RUC) of 2.5c/km for electric vehicles and a 2.0c/km for plug-in hybrid electric vehicles. This RUC will be applied from 1 July 2027 or when EVs make up at least 30 per cent of new car sales.
In the 2025-26 Budget, the Government has revised up its expected revenue from this charge. This upgrade largely reflects a change in the forecast to accurately reflect the annual indexation of the RUC rate from the 2022-23 financial year.
Skills and Training
- $2.8 billion investment in 2025-26 for TAFE to grow the skilled workforce.
- $40.2 million to continue fee-free apprenticeships and traineeships for priority qualifications.
- 44,995 fee-free training places for the formal training component of apprenticeships and traineeships.
- $100 rebate to registered first and second year apprentices through the Apprentice Vehicle Registration Rebate.
- The Vocational Training Assistance Scheme travel and accommodation allowance for apprentices or new entrant trainees who are required to travel more than 120 km round trip to attend day or block-release training.
EV Infrastructure
- A 30 per cent discount on the upfront cost of installing small-scale battery systems through the Cheaper Home Batteries Program (administered by the Australian Government) for eligible households and small businesses from 1 July 2025.
- Increased battery discount from 1 July 2025 through the Cheaper Home Batteries Program.