New South Wales Government passes EV investment Bill

The New South Wales Parliament has passed the Electric Vehicles Bill, introducing an investment package worth $600 million.

First announced in June, the strategy at the heart of the Bill targets electric vehicles making up more than 50 per cent of the new car market by 2030, a significant increase of the current 0.43 per cent share so far this year.

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NSW Premier Dominic Perrottet

A rebate of $3000 has been offered to the first 25,000 buyers of EVs with a list price of $68,750 or less, which will be applied retroactively to all owners who purchased a new EV from September 1, 2021.

The Government forgoes charging stamp duty on any EV under $78,000 before on-road costs, while plug-in hybrids will be included under the scheme from July 1, 2027 – or when the state surpasses 30 per cent electric sales.

Looking to lead by example, the NSW State Government's vehicles will go all-electric by 2030, with 50 per cent of the roughly 20,000-strong fleet expected to ditch internal combustion engines by 2026.

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An investment in infrastructure will also come to support the expected electric uptake – with $150m allocated towards highway fast charging, commuter corridor fast charging, destination charging, and household areas.

On top of this, a further $20m is set to be allocated towards destination chargers along yet-to-be-determined tourist routes, boosting the local economy of select communities by placing the fast chargers at motels, restaurants and points of interest.

Unlike the Victorian State Government, NSW won't introduce a road user charge in the near future, instead waiting until July 2027 or the 30 per cent marker to bring in its charge of 2.5 cents per kilometre, and EV drivers will also be allowed to use T2 and T3 transit lanes.

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CEO of the Electric Vehicle Council, Behyad Jafari, told WhichCar he was pleased to see the NSW Government lead the way towards EV adoption in Australia, having consulted with the authority and the NRMA on the Bill.

“The passage of the NSW Electric Vehicle Bill is a huge step forward for EVs in Australia," said Jafari.

"The State Government's nearly $600m investment will make electric vehicles cheaper to buy [and] build more charging stations.

“What Australia needs now is for other governments to follow the example NSW has set to boost EV uptake immediately.”

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The incentives included in the Bill now mean the MG ZS EV will retail for $41,990 after the rebates are applied, with the brand's Australia and New Zealand CEO Peter Ciao welcoming the legislation.

“We welcome the move from the NSW Government to support the roll-out of electric vehicles and this government scheme will allow more of our customers to commit to an electric future sooner,” said Ciao.

“We look forward to offering our support to the Minister for Energy and Environment’s office, as MG accelerates its plans to supply and support infrastructure in NSW and across Australia.”

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Chief Executive of the Federal Chamber of Automotive Industries, Tony Weber, said the NSW policy is an example which should be followed by other states and territories.

“Capital investment in a comprehensive electric vehicle charging network in metropolitan and regional areas is precisely the kind of tangible and practical policy setting that will increase the confidence of EV drivers across the State,” said Weber.

“The accompanying reforms, including the elimination of stamp duty on EVs together with non-financial benefits of access to transit lanes for EV drivers, are also consistent with best practices from governments across the world.

“The direct consumer incentives also provide a boost to the market. We look forward to seeing the full details of how consumers can access these grants along with stamp duty relief which we note will be available prior to November 1.”