NSW Government opens up EV incentives and boosts funding
NSW green-lights and increases total funding for electric vehicles
Following the NSW Government’s announcement in June this year that it would be delivering a package worth $490 million to support and incentivise the transition to electric vehicles, measures are now being rolled out, with the Electric Vehicles Bill giving the green light to the incentives outlined in the EV Strategy.
On the 10th of November, this package was actually increased, with a further $105 million made available to boost uptake of EVs by fleet operators in NSW. So the total amount of funding now committed by NSW is $595 million.
The total funding available positions NSW as the leading state in Australia supporting the EV transition, according to the RACQ, who nonetheless note that all states are performing well and are accelerating their policy action despite the slow pace of policy action at a Federal level.
Demand for EVs is increasing
NSW Government’s support simply reflects the reality that passenger fleets are moving to electric, with more than 20 countries committing to ambitious goals for new vehicles to be EV during the period 2030 to 2040. This includes Norway where over 70% of new car sales are electric, and the UK which has promised to bring forward its 2035 target for banning new petrol and diesel cars to 2030. All major car manufacturers are investing in developing EV models, consumer sentiment in Australia is increasingly positive towards EVs, and there is greater model availability year-on-year.
While EV sales are still small in Australia, nearly 9,000 BEVs and PHEVs were sold in the first half of 2021, nearly doubling the market share of EVs compared with 2020.
So the trend for EV purchases and demand is up, and NSW Government’s package of measures will help to accelerate this further.
What incentives are now being rolled out?
For the original major EV measures announced that are most relevant to businesses in NSW, here is the current status.
- Guidelines and the claim process are now in place for the EV rebate of $3,000 for the first 25,000 eligible EV purchases registered after 1 September this year. Businesses with less than 10 vehicles (passenger, sports utility or light commercial) can apply for up to two rebates, with novated lease vehicles not eligible. The rebate applies to BEVs as well as hydrogen fuel cell vehicles (FCEVs)
- Stamp duty can now also be claimed back on eligible vehicles with a dutiable value under $78,000. As well as eligible vehicle types for the $3,000 rebate, this incentive also applies to motorbikes and second hand vehicles.
- The $171 million committed for charging infrastructure will lead to a Statewide rollout that will provide for fast, secure charging that can guarantee the availability of charging points for drivers travelling to anywhere in the state. NSW Government’s master plan map shows current and potential locations for new charging infrastructure and can help businesses and fleet operators plan their transition with more confidence.
Charging infrastructure that is highlighted includes ultra-fast chargers on so-called EV Super-Highways, EV Commuter Corridors and EV off-street parking chargers. Commuters in Sydney will be no more than 5km from an ultra-fast charger, and there will be no more than 100 km between chargers on highways.
Commuter and tourist EV charging plans will also be rolled out under this funding.
What will the new $105 million funding support?
NSW government is investing a further $105 million to support fleets to procure EVs.
If you are a NSW business, not-for-profit, vehicle hire company or local council, you have an opportunity to access incentives to support the purchase of battery electric vehicles (BEVs) or hydrogen fuel cell electric vehicles (FCEVs).
This will help you bridge the cost of transitioning your fleet’s passenger, light commercial or sports utility vehicles to BEVs through a reverse auction tender process. Additional funds are also available for smart base charging.
Who is eligible?
There are two funding streams with different eligibility requirements. Bids will be assessed against other bids in the same stream.
- Individual fleets – you must operate a fleet of at least 10 vehicles in NSW to support your organisation’s purposes. Eligible organisations include – but are not limited to – business, local council and non-government organisations.
- Aggregators – you can offer incentive funding to NSW customers as part of the vehicle leasing arrangements you provide. This includes fleet management organisations and private businesses that offer fleet leasing arrangements to NSW customers.
To find out more, please visit their website.
How can you get involved?
There is an information session on 30 November 2021.
This event will give an overview of the application process, the bidding platform and key dates. Please read the guidelines and FAQs in advance to get the most out of this session. The funding round will open following this event. You can register for the bidding platform here.
How can we help you?
If you are considering planning for your fleet transition to electric, please send an email to email@example.com or call Patrick at 0408 413 597.
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