The NSW State Budget was handed down this morning with major changes to the Government’s policy in relation to electric vehicles. Issues of relevance to Dealers are summarised below.
Removal Of Stamp Duty Exemption and Rebate for Certain Vehicles
- From 1 January 2024, stamp duty exemptions and the $3,000 rebate for the purchase of EVs will cease. The liability for the Road User Charge (RUC) will also change so that all zero and low-emissions vehicles (including plug-in hybrids) registered for the first time or transferred from 1 January 2024, will be liable to pay the RUC from the earlier of 1 July 2027 or when EVs amount to 30 per cent of new vehicle sales. Taking account of delivery delays, transitional arrangements will preserve the stamp duty exemptions and rebates for people who contract to purchase an EV before 1 January 2024.
- While the NSW EV RUC is not expected to commence until 1 July 2027, the revenue at risk if the High Court decision in Victoria goes against the Government is expected to be $180 million in 2027-28 and $1.7 billion annually in the long term.
- The Government is implementing this change to redirect spending to programs that more effectively encourage uptake of EVs. Savings of $260 million will be used to implement the revised EV Strategy.
Electric Vehicles Charging Infrastructure
The NSW Government aims to increase electric vehicle sales to more than 50 per cent of new cars sold in New South Wales by 2030. To achieve this, the Government is investing:
- $263 million in new (recurrent) funding to deliver the Electric Vehicle Strategy, including additional EV infrastructure,
- $149 million to co-fund the delivery of ultra-fast EV charging stations,
- $20 million for co-funding EV charging infrastructure in commuter carparks,
- $20 million to co-fund destination charging along tourist routes,
- $10 million to co-fund about 500 kerbside charge points in areas of metropolitan NSW where residents do not have access to off-street parking, and
- $10 million to co-fund upgrades to electrical infrastructure in about 100 medium and large apartment buildings.
The NSW Government is also investing $105 million to support private and local council fleets to purchase EVs and is committed to electrifying its own passenger vehicle fleet.