Victoria Shocks with Decision to Eliminate Electric Vehicle Rebate Program
Victoria Shocks with Decision to Eliminate Electric Vehicle Rebate Program

Victoria Shocks with Decision to Eliminate Electric Vehicle Rebate Program

June 8, 2023

The global transition towards electric vehicles (EVs) is a forceful current that is reshaping the automotive landscape worldwide. Australia, too, is caught in this tide, with Victoria at the forefront of this transformative shift. The journey towards sustainable transportation in Victoria is a complex one, marked by a web of financial incentives, tariffs, and cash-back schemes designed to facilitate this transition. This article aims to unravel these complexities, providing a roadmap through Victoria’s EV policies, rebates, and their potential advantages and challenges.

The EV Landscape in Victoria: Key Factors and Developments

Victoria’s approach to promoting EV adoption has been multifaceted, involving a mix of incentives and levies. The state administration had once advocated for the uptake of more sustainable transport modes by offering a rebate on new EVs priced at $68,740 or less. This initiative was designed to make EVs more accessible to the average buyer, thereby accelerating the shift towards cleaner transportation.

However, the policy waters were stirred when Victoria became the first Australian state to impose a road user levy on EV owners. This levy, pegged at 2.5 cents per kilometre for fully electric vehicles and 2.0 cents for plug-in hybrid EVs, was devised to counterbalance the loss of fuel excise tax traditionally collected from conventional vehicles. As EVs bypass traditional fuel, this revenue stream was drying up, hence the levy emerged to maintain fiscal equilibrium, ensuring that EV owners contribute fairly towards road infrastructure.

The End of the EV Rebate Program and its Implications

In late 2022, the Victorian government announced its plan to dismantle the EV rebate program from 2023 onwards. This decision was met with backlash from EV advocates who feared it could hinder the shift towards sustainable transportation. However, the government defended its decision, stating that with the growing competitiveness of EV prices and increasing adoption rates, the need for such a rebate program was diminishing.

While the discontinuation of the EV rebate might seem like a step back, it’s important to remember the considerable tax advantages available to EV owners in Victoria. EV operators are spared from the hefty burden of the fuel excise levy and may gain tax benefits if they opt to incorporate EVs into their business fleet. These include deductions for commercial use of an EV, write-offs for charging equipment installation, and the reduced operational cost of an EV, considering the advancing battery technology and relatively lower cost of electricity compared to fuel.

The Future of EV Adoption in Australia

Despite the potential setbacks, it is estimated that approximately 20,000 Australians have already adopted EVs. With the decreasing costs of EV technology, this number is likely to rise, despite the end of the rebate program. The price of registering a Tesla, or any other EV for that matter, depends on the specifics of the vehicle and the state of registration. As an estimate, owners should anticipate an annual fee between $700 and $800.

The shifting terrain of EV policies in Victoria is emblematic of the broader transition challenges faced as we move from fossil fuel vehicles to EVs. Although the future might appear fraught with uncertainty, one thing is clear: the revolution brought by EVs is enduring and irreversible.


What was the Victoria EV rebate threshold? The threshold for the EV rebate in Victoria was set for new EVs priced under $68,740.

What is the EV road user levy in Victoria? The EV road user levy in Victoria is 2.5 cents per kilometre.

What’s the Victoria rebate for 2023? The Victoria EV rebate program will be phased out in 2023.

Are electric cars cheaper to register in Victoria? The registration costs for electric cars are on par with conventional vehicles.

How much does it cost to register a Tesla in Australia? The cost to register a Tesla in Australia typically ranges between $700 and $800 annually.


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