SA Government Scraps EV Subsidy

The South Australian Government announced yesterday that the $3,000 subsidy for eligible new battery electric or hydrogen fuel cell vehicles will end from 1 January 2024.

The move was announced as part of the 2023/24 mid-year budget review. SA Treasurer Stephen Mullighan stated that the $3,000 EV subsidy is no longer necessary following the Commonwealth Government’s updates to the fringe benefits tax and cuts to import tariffs.

Individuals and businesses that have entered into a binding contract for the purchase of an eligible electric or hydrogen fuel cell vehicle prior to 1 January 2024, and are awaiting delivery of the vehicle, will still be eligible to receive the subsidy regardless of whether the vehicle has been registered by that date. Applications for eligible vehicles purchased prior to 31 December 2023 must be submitted by 31 December 2024.

There are no changes to the registration exemption for electric vehicles. A three-year exemption will still be available to any eligible new electric vehicles valued below $68,750 and first registered between 28 October 2021 and 30 June 2025.

More information on the changes from 1 January can be found here.