The NSW Government has been making a strong push in the area of climate change issues including a recent announcement in regard to a target for electric public transport vehicles. That approach has now been further expanded with a major policy announcement in the state’s 2021/22 budget in regard to stamp duty on electric vehicles (EV). Other incentives have also been announced to encourage the take-up of EVs. Price has been identified as a major obstacle to many buyers as has access to recharging facilities. Both these issues have been addressed in the budget. But the policy has good news and not so good news for prospective EV buyers as the announcements around EVs appear in both the budget winners and budget losers lists. So buyers, take note.
The NSW Treasurer Dominic Perrottet brought down the 2021/22 State Budget on Tuesday 22 June. The budget includes what has been described as an ‘ambitious’ $500 million plan towards battery-powered vehicles constituting more than 50% of new car sales in the state by 2031. Ambitious possibly, but the NSW Government is keen to incentivise the take-up of EVs and on the back of a reducing deficit appears to be in a position to offer incentives to achieve their target.
EV Stamp Duty Waived
The key inclusion for motor vehicle buyers is the waiver on stamp duty on some electric vehicles. The policy apparently applies to vehicles under $78,000 applicable from 1 September 2021. To find out what that may cost on the EV you are considering, speak with your dealer or request a vehicle price quote post September.
In addition, the first 25,000 buyers, after 1 September, purchasing vehicles under $68,000 are slated to receive a $3,000 rebate. Read more.
The policy is part of the Government’s overall Electric Vehicle Strategy which also includes EVs ability to use carpool and other such lanes, use priority car parking for recharging and funding for charging infrastructure. According to reports, there are plans to offer incentives for businesses to set up charging stations on their premises for staff.
In their efforts to achieve this increase in EV take-up, the Government is taking the lead with a plan to upgrade the Government fleet, which is regularly upgraded on a scheduled timeframe, to EVs. When the new EVs are then replaced in the 5 year upgrade time, these vehicles would be available on the used EV market.
Leading motoring group, NRMA, has responded to the Government’s EV Strategy saying the NSW Government was both a global and national leader in transitioning to EVs. It should be noted that the Victorian Government also announced policies in regard to EVs in their 2021/22 state budget.
The Downside to Electric Vehicles
While NSW EV buyers can take advantage of these rebates and stamp duty exclusions at the time of purchase, they will face a speed bump or more specifically a tax or cost bump down the road. As more car owners take up EVs as the NSW Government is hoping, the Government would be facing a loss in the amount of revenue it would receive on fuel excise. Revenue that is used to fund infrastructure projects especially roads.
To compensate for this loss of revenue, EV owners are expected to face a road user tax at 2.5c per klm by 2027 or by the time the target of 30% of new car sales are EVs.
More information here https://www.iea.org/reports/global-ev-outlook-2020
Buying a New EV
If the incentives offered by the NSW Government are motivating you towards the purchase of a new electric vehicle, we offer a few additional aspects to consider. Changes to the Luxury Car Tax come into effect on 1 July which may also reduce the price of the vehicle you are considering.
The rebate of $3,000 announced for buyers of vehicles under $68,000 is limited to the first 25,000 buyers. Many vehicle manufacturers are currently facing stock shortages and delivery delays due to the global microprocessor chip shortage and other manufacturing issues.
Buyers may need to get in fast and pre-order their vehicle to ensure they take delivery to be eligible for the rebate. To assist with that process, contact us for pre-approved finance so your loan is locked in and you can place that order.
If you’re tossing up between several makes and models of EVs, use our loan repayment calculator to see how the price tags can play out in estimated repayments.
Cheap Car Loans for Electric Vehicles
Jade Car Loans offers both consumer and business finance for all types of vehicles including EVs with the same cheap interest rates applying to EVs in all price ranges.
For personal buyers of new EVs, our Secured Car Loan is the most appropriate type of loan.
Business buyers have the choice of our commercial loan portfolio products which include:
- Chattel Mortgage
- Car Lease
- Commercial Hire Purchase
Businesses that utilise temporary full expensing with Chattel Mortgage EV finance can further enhance the taxation benefits of their purchase.
Contact 1300 000 003 to discuss a quote for finance on a new EV.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.