Sat. Sep 23rd, 2023
    Electric Vehicle Tax Exemption in NSW Benefits High-Priced EVs

    The New South Wales government recently announced changes to the electric vehicle (EV) tax policy, exempting high-priced EVs from the road tax that will be implemented in mid-2027. This exemption applies to EVs costing above $78,000 that are bought or ordered before the end of this year. The move comes after the government announced the removal of rebates and stamp duty exemptions for EVs under certain price thresholds at the end of 2023.

    Although these rebates and exemptions will no longer be available after 2023, they will still apply to any eligible EVs ordered before the end of the year, even if the vehicles are not delivered by that time. The road user charge, previously advertised to begin in 2027, will apply to all zero and low-emissions vehicles registered or transferred from January 1, 2024.

    However, in a surprising incentive, EVs purchased before January 1, 2024, that did not receive a stamp duty exemption will be exempt from the road user charge. This means that high-priced EVs, including luxury models like Mercedes and Porsche, will not be subject to the road tax. Additionally, early adopters who purchased EVs before the introduction of stamp duty exemptions in September 2021 will also be exempt from the road-user-charge.

    The road tax, set at 2.5c per kilometer for full EVs, is expected to rise with inflation and could potentially reach 4c per kilometer by 2027/28. The NSW government aims to replace the rebate removal with a $260 million funding commitment for new EV infrastructure, such as regional fast charging stations and roadside charging.

    This move has sparked discussions about the impact on EV demand and potential rush orders, especially for newly released models priced below $40,000, which could benefit from the existing rebates and exemptions. The exact details of the funding for EV infrastructure will be revealed in a refreshed EV Strategy in 2024.

    – Government announcement
    – The Driven