NSW EV incentives set for delay due to Covid 19 lockdown

The introduction of the NSW government electric vehicle incentives policy will be delayed from its planned September 1 introduction, according to the Electric Vehicle Council.

Incentives of up to $5325 are planned – incorporating a $3000 rebate and waiving of stamp duty – to be introduced within weeks as part of a broader $490 million plan to increase the uptake of electric vehicles in Australia’s most populous state.

The EV Council – a lobby group that represents the EV industry, including manufacturers, energy companies and charging networks – sent an email letter to its members this week alerting them to an imminent delay to the legislation brought about by Covid 19 lockdowns in NSW.

“Due to the lockdown in NSW, Parliament has not yet been able to sit and pass this Electric Vehicle (Revenue Arrangements) Bill 2021,” said EV Council CEO Behyad Jafari in the email.

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“With the next sitting tentatively scheduled for 7 September, this will cause a delay beyond the envisaged 1 September start date.”

Jafari said the NSW government is “still committed to this policy and intend for it to pass as soon as possible”, but could not put a date on when it would make it into law.

A spokesperson for the NSW Treasurer Dominic Perrottet confirmed that in a statement to EV Central.

“The NSW Government is committed to implementing its nation-leading EV strategy, which will make NSW the best state in which to buy and drive an EV,” the spokesperson said.

The EV Council said it was “urging” the government to put the electric vehicle policy on its agenda “in the first possibly sitting” of Parliament.

“We are also working with the government to support options to apply rebates retrospectively from 1 September, when the Bill is passed – and for the ability for government to convey this message to the community.”

However, the government said there were currently other priorities in NSW.

“Our primary focus right now is on protecting the people of our State and helping families and businesses get through this challenging period. The NSW Parliament has been suspended for August and will resume in September, when the NSW Government will continue to progress this important reform.”

Jafari also told EV Central that he only expected “a very slight delay” and that “the good news is from the government is that they’re still very committed to the policy and the program”.

He said the industry was preparing for a surge in EV interest when the EV policy was implemented.

“People are certainly plainning for sales to go up,” said Jafari, while acknowledging that there may be a delay in the sales figures due to Covid delays and global microchip shortages that are causing production headaches for car makers around the world.

Car makers are already preparing to take advantage of the EV incentives and Tesla has a prominent link on its website detailing the various state incentives. Tesla also recently slashed the price of its most affordable Model 3 and imported thousands to Australia, many of which appear to be awaiting buyers.

At least three key soon-to-arrive models – the Kia EV6, Hyundai Ioniq 5 and Polestar 2 – are yet to announce Australian pricing, but each is expected to ensure at least one model slides in under the $68,750 threshold for a $3000 rebate.