Thousands of electric vehicle rebates unclaimed ahead of scheme’s end

NSW residents have less than a fortnight to claim thousands of $3000 rebates for electric vehicles, as the state government reviews its strategy for encouraging uptake after a Victorian policy was declared legally invalid.

In September 2021, the former Coalition government announced it would fund 25,000 rebates for people purchasing full battery electric and hydrogen fuel cell vehicles with a dutiable value of less than $68,750.

However, in this year’s budget the state government announced it would scrap the rebates and a stamp duty exemption – which, combined, saved NSW purchasers of the vehicles up to $5540 – at the end of the year. In their place, it promised an additional $260 million for fast-charging infrastructure, prioritising drivers in the regions and those who live in apartments.

NSW’s rebate for new electric vehicle purchases will end this month.Credit: Peter Rae

By the start of December, only 10,229 rebates had been paid, and 931 applications were being processed, data from the Department of Customer Service shows.

The remaining almost 14,000 rebates remain available to be claimed by NSW residents purchasing eligible vehicles in the state before the end of the year, regardless of whether the vehicles have been delivered before January 1.

CEO of the EV Council, Behyad Jafari, said he was disappointed the rebate was ending.

“We weren’t a part of the decision to end the rebates, and we were surprised because it wasn’t something Labor campaigned on,” he said.

He said rebates and stamp duty exemptions had diversified the areas where people bought electric cars. Surveys conducted by the lobby group suggested electric vehicles – previously the domain of north shore and east – were increasingly being purchased by people in Sydney’s west.

“The suburbs and the areas where people are buying them has changed,” Jafari said. “When we do consumer surveys it used to be environmental concerns, but we’ve really seen that shift very markedly to cost of living.”

According to the EV Council’s annual State of EVs report, in the 12 months to July 46,624 EVs were sold, around 8.1 per cent of the market and a 121 per cent increase on the previous year.

With the rebates and stamp duty exemptions to go, Jafari said the state government should invest in funding electric vehicles for use as hire cars, and to be used by taxi and rideshare companies.

“The most powerful tool that we have [to encourage uptake] is to have people experience driving in an EV,” he said.

NSW Environment Minister Penny Sharpe said the move away from the rebates was a deliberate shift away from cash incentives for a limited number of individuals, towards spending on infrastructure for all.

“When the infrastructure is in place, more people will jump on board,” she argued.

The state government has been reviewing its electric vehicle strategy this month.

Implemented by the previous government, the current strategy includes rebates and stamp duty exemptions with a target of making electric vehicles 50 per cent of car sales of 2030-31.

An additional consideration is the future of NSW’s planned road user charge for electric vehicle drivers, after the High Court declared a similar Victorian tax unconstitutional earlier this year. The NSW tax was due to commence in 2027.

In a statement, Sharpe’s office said NSW was working with other states and with the federal government on “the right way forward” for the road user charge.

They said NSW Labor had opened or awarded grants for several electric vehicle programs since the election which had been promised by the previous government, including a $10 million funding round for destination charging grants which opened in November and a fleets incentive designed to assist rideshare and taxi companies to purchase electric vehicles.

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