The New South Wales (NSW) government has announced its decision to discontinue a $3,000 subsidy for new electric vehicle (EV) purchases, along with exemptions for stamp duties, effective from January 1, 2024. This move is part of an effort to reallocate savings towards the expansion of EV charging infrastructure in commuter car parks and apartment complexes.
Transitional arrangements have been put in place to ensure that individuals who have already purchased or placed a deposit on an eligible EV, regardless of whether the vehicle has been delivered by the specified date, will still be eligible for the incentives. The decision to phase out these incentives is primarily aimed at preventing a potential increase in EV prices, which could lead to higher profits for manufacturers.
NSW Treasurer Daniel Mookhey emphasized the importance of distributing government benefits more equitably, stating that “the benefits of government spending shouldn’t be concentrated in the hands of the few.” He further explained that these incentives posed a risk of driving up the cost of EVs, ultimately benefiting manufacturers.
Despite these changes, the government remains committed to its plans for the $25 billion Metro West rail line. Minister for Energy and Climate Change, Penny Sharpe, highlighted the significance of increasing the number of electric vehicles on the road in order to achieve Net Zero emissions in NSW. She stated, “Increasing the number of electric vehicles on our roads is an essential step to NSW getting to Net Zero emissions,” and added, “To facilitate EV uptake, the NSW Government will increase funding to essential infrastructure. Whether it is in apartment buildings, commuter car parks, or kerbside, we are committed to making sure the infrastructure is in place to get electric vehicle drivers from A to B.”