South Australia joins EV incentive push with a planned $3k subsidy

August 26, 2021August 26, 2021 EV Central team 1429 Views ev incentives, EV subsidy, south australia

South Australia has joined the EV incentive push with a planned $3000 subsidy for zero-emission vehicles that puts the state on-par with NSW and Victoria in kickstarting the take-up of electric vehicles.

South Australia’s planned $3k EV subsidy, which will be taken to parliament, is yet to be fully detailed, but at its centre will be an effective discount on the price of a new electric vehicle, part of a new $18m package designed to “help drive the take-up of zero and low emission vehicles in South Australia”.

Unlike NSW, it appears there are no futher tax breaks, such as the removal of stamp duty.

Like other states, though, the package is a limited-run offering, and will apply only to the first 6000 EVs sold in South Australia. The State Government is yet to detail any price caps for purchase, so it’s unclear whether it will only apply to vehicles below a certain price ceiling, or to all electric vehicles sold.

Another key plank in the proposal will be the delayed introduction of the Electric Vehicle Road User Charge, which was to be launched in July 2022, but will instead be pushed back to July 2027, or to when EVs make up 30 percent of new-vehicle sales in South Australia, whichever occurs first.

The Road User Charge will be calculated at 2 cents per kilometre for plug-in hybrid vehicles, and 2.5 cents per kilometre for BEVs. Hybrid vehicles will be exempt, even though they only pay about half the tax in fuel excise than an equivalent non-hybrid.

“We are committed to investing to help drive the take-up of environmentally friendly zero and low emission vehicles while ensuring there is a long-term sustainable model for critical road funding,” says SA Treasurer, Rob Lucas.

“Our proposed new $3000 State Government-funded subsidies for new full electric vehicles are expected to provide a further incentive for those motorists who may be considering a purchase of this type.

“The subsidies, which are consistent in value to those offered in Victoria, are contingent on the Bill passing the Parliament and would be introduced at that time.”

South Australia’s planned $3k EV subsidy has been welcomed by Australia’s peak automotive body, the Federal Chamber of Automotive Industries, where chief executive Toby Weber says it acts as another “positive signal” towards EV take up in this country.

“The approach of the Government through the proposed Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 is consistent with actions being taken across the world to support the introduction of new vehicle technologies that reduce CO₂ emissions and meet the mobility needs of a growing number of motorists,” he says.

“The proposed customer subsidy of $3000 for electric vehicles provides a positive signal to customers and car companies that this emerging technology is a key part of our transportation future.”