NSW to fund second $15m round of electric vehicle incentives

NSW Treasurer Matt Kean will commit $15m towards incentives for councils and businesses to switch to electric vehicles.

The NSW Treasurer will commit millions towards an incentive to go electric. Picture: NCA Newswire / Gaye Gerard

The NSW Treasurer will commit millions of dollars in funding to entice councils and businesses to switch to using electric cars.

The second round of the $105m NSW Fleets Incentive will open on Thursday and will enable operators of car fleets – for example, taxi companies – to apply for funding to go electric.

“The future of transport is electric and NSW is leading the charge and driving Australia forward to that future,“ Matt Kean said.

The Treasurer, who drives a Tesla, said the program would lead to more electric vehicles being available for private drivers as well.

Matt Kean, right, said the initiative would lead to more electric vehicles on the second-hand market as well. Picture: Monique Harmer

Mr Kean envisioned a trickle-down effect where electric cars bought by businesses and councils would eventually be sold off on the second-hand market.

“These incentives will help attract more electric vehicles to NSW, giving our drivers greater choice when it comes to buying their next car,” he said.

Most fleet vehicles end up being sold on the second-hand market within three or four years, the Treasurer’s office said.

The second round of funding will cost $15 million, to be doled out in the form of a reverse auction.

Fleet operators will be asked to calculate the total cost of ownership and then suggest to the government how much they need to go electric instead.

Winning bidders will also get $400 per vehicle to buy a smart charger, which Mr Kean called “an important part of the shift to EVs”.

Operators who competed in the first round can have a go again, no matter if they were successful or not the first time around.

The registration closes on August 17.