New South Wales to scrap EV subsidy in favour of chargers
Australia’s New South Wales government will scrap a $3,000 subsidy for drivers who buy a new electric vehicle but will redirect some of the savings to rolling out more charging stations in commuter car parks and apartment blocks.
The government announced that rebates for EV purchases and exemptions for stamp duties will cease on 1 January 2024. However, transitional arrangements will ensure those who have purchased or placed a deposit on an eligible EV, and are awaiting delivery of the vehicle, will still be eligible, regardless of whether the vehicle has been delivered by that date.
These incentives are being phased out “because they risk driving up the cost of EVs, resulting in increased profits to manufacturers”.
NSW Treasurer Daniel Mookhey said that “the benefits of government spending shouldn’t be concentrated in the hands of the few” and the incentives risked driving up the cost of EVs, leading to increased profits to manufacturers. He also indicated that the planned $25 billion Metro West rail line is also still planned.
“Increasing the number of electric vehicles on our roads is an essential step to NSW getting to Net Zero emissions.,” said Minister for Energy and Climate Change Penny Sharpe, adding: “To facilitate EV uptake, the NSW Government will increase funding to essential infrastructure. Whether it is in apartment buildings, commuter car parks or kerbside, we are committed to making sure the infrastructure is in place to get electric vehicle drivers from A to B.”