NSW Budget 2021: Bold plan to make half of new cars electric by 2030

By the end of the decade it is expected that half of all new vehicles sold in NSW will be electric with the government revealing a range of incentives that will transform the car market.

Electric vehicles will become more prominent on NSW roads. Picture: AAP IMAGE/Jordan Shields

Half of all new cars to be sold in NSW will be electric by 2030 — and by 2035 almost all will be — under an ambitious state government plan to phase out petrol vehicles.

Recharging stations will be built along “super highways” at 150 sites across the state under the almost half a billion dollar plan, part of the upcoming NSW Budget.

Part of the plan to achieve net zero emission by 2050, the “electric revolution” will include $490 million towards tax cuts, incentives and the removal of barriers to boost the uptake of electric vehicles (EV) over the next four years.

A road user tax would be introduced in six years or when for EVs made up 30 per cent of new car sales.

Sydney Electric Vehicle commuter corridors.

NSW Electric Vehicle commuter corridors.

Treasurer Dominic Perrottet said the major tax reform would begin by permanently phasing out stamp duty on EVs, along with a deferred transition to a sustainable per-kilometre road user charge.

From September this year, stamp duty for eligible EVs under $78,000 will be waived with $3000 rebates made available to the first 25,000 buyers of battery and hydrogen fuel cell electric vehicles under $68,750.

“Our comprehensive strategy is about making sure we have the right mix in place to incentivise the take-up of electric vehicles, while ensuring everyone who drives on our roads contributes to funding and maintaining them,” Mr Perrottet said.

Electric vehicles will become more prominent on NSW roads. Picture: AAP/Jordan Shields

Transport Minister Andrew Constance said the EV strategy would help the state government take action on climate change by reducing emissions.

EVs reduced both carbon emissions and air pollution. “Our transport sector makes up 20 per cent of the state’s emissions, with almost 50 per cent of those coming from passenger vehicles,” he said.

Mr Constance said the average driver switching to an EV would save $1000 a year.

Energy and Environment Minister Matt Kean said carmakers globally were moving towards EVs “and NSW consumers deserve access to the latest vehicle models”.

Originally published as NSW Budget 2021: Bold plan to make half of new cars electric by 2030