26 September 2023

Treasury to switch on cash for electric cars

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Motorists who purchase a new electric vehicle could soon be eligible for a $3,000 subsidy as part of a plan to help drive the increase of zero and low emission vehicles.

Treasurer, Rob Lucas said the proposed upfront, time-limited subsidy would be provided to 6,000 full electric vehicles purchased in the State, subject to the new Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 passing Parliament.

Mr Lucas said the Bill, which was introduced to Parliament last Thursday (26 August), would also extend the introduction of the proposed Electric Vehicle Road User charge from 1 July 2022 to 1 July 2027, or when the sale of electric vehicles reached 30 per cent of the State’s new motor vehicle sales, whichever was earlier.

He said consultation had been held with industry, manufacturers and other interest groups to extend the introduction of the proposed User Charge by up to five years (July 2027).

“Currently, drivers of zero and low emission vehicles pay little or no fuel excise,” Mr Lucas said.

“But ultimately, as the State transitions towards a higher concentration of zero and low emission vehicles, there will be a corresponding reduction in the number of motorists paying fuel excise, which contributes to vital road funding to help maintain and improve the State’s road network,” he said.

“A road user charge is necessary to ensure that all vehicle owners, regardless of what car they drive, contribute to the upkeep of our roads into the future.”

Mr Lucas said the road user charge, modelled on similar schemes in New South Wales and Victoria, would be calculated at 2 cents per km (indexed) for plug-in hybrid vehicles, and 2.5 cents per km (indexed) for any other electric vehicles.

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