WA Government announces $60 million EV package, road user charge from 2027

The Western Australian Government has unveiled a $60 million electric vehicle package ahead of its State Budget later this week, featuring both rebates and investments in infrastructure.

Becoming the latest Australian state to offer incentives for new vehicle buyers, the WA Government has also followed other states' leads in introducing a controversial road user charge – as first adopted in Victoria last year with $200,000 set to be invested in developing systems to monitor and collect the tax.

Set to come into effect from July 1, 2027, owners of zero-emissions vehicles such as fully-electric vehicles (EVs) and hydrogen fuel-cell vehicles (FCEVs) will be charged 2.5 cents for every kilometre driven, while hybrid drivers are hit with a two cent charge.

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To offset this, the WA Government will offer the largest rebates in Australia, with an incentive of $3500 for the first 10,000 Western Australians to buy an EV or FCEV from today (May 10), applying to vehicles under $70,000 before on-road costs.

While this $36.5 million investment makes up over half of the package, an additional $22.6 million will be put towards upgrading, expanding and improving WA's electric vehicle charging infrastructure.

A sizeable $10 million chunk of this fund is set to be allocated towards supporting not-for-profit and small to medium-sized businesses with grants of up to half of the cost of installing charging infrastructure.

On top of this, $5 million will go towards grants of 50 per cent of local government chargers; $4 million for the Public Transport Authority to trial the installation of up to 20 charging bays at four train stations; and more than $2.9 million for eight new charging stations across four locations on a section of National Highway 1 between Norseman and Eucla.

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Western Australia's Premier, Mark McGowan, said the significant rebates reiterated the State Government's commitment towards reducing its carbon emissions.

"My Labor Government is taking climate action to secure WA's low carbon future," said Premier McGowan.

"Building on our $750 million Climate Action Fund that was announced last year, we are implementing further initiatives to significantly reduce our carbon emissions and progress towards net zero emissions.

"Our $3500 rebates are one of the most generous grants on offer in the nation and will see an extra 10,000 electric and hydrogen fuel-cell vehicles on our roads.

"This will assist WA with reducing greenhouse gas emissions to net zero, while also reducing the pressure of high petrol prices on WA households that utilise the rebate."

Last week the Australian Labor Party announced it would introduce an ‘Electric Car Discount’ if elected on May 21, with a further $500 million to be allocated for its ‘Driving the Nation Fund’ for renewable fuels.

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The Federal Chamber of Automotive Industries supported the WA Government's package, although it reiterated calls for a unified road user charge beyond zero and low-emissions vehicles.

“The McGowan Government’s commitment of $22.6 million to expand charging infrastructure is a proactive step towards preparing for the future electrification of our road network,” said FCAI's Chief Executive, Tony Weber.

“The inclusion of 10,000 rebates of $3500 for Western Australians who purchase a new electric or hydrogen fuel-cell vehicle is positive for automotive manufacturers and Western Australians alike.

“These rebates are going to help make owning an electric or hydrogen fuel-cell vehicle possible for more Western Australian road users. It sends a positive signal for car manufacturers and motorists that electrification will be a key element in Australia’s transport future.

“However, the FCAI maintains that all taxes and charges related to motor vehicles should be replaced with one road user charge which can apply to any type of vehicle powertrain."