Australia's most economically developed state, New South Wales, announced on Sunday that it would exempt electric vehicles from taxes and offer other incentives totaling 490 million Australian dollars (US $366.5 million). In an effort to expand the electric car market to half of all new car sales within a decade.
The plan includes an A $3000 tax rebate for the first batch of 25000 new electric vehicles sold, applicable to electric vehicles selling for no more than A $68000, and the abolition of stamp duty on electric vehicles priced less than A $78000.
The New South Wales government also announced that it would invest A $171 million in electric vehicle charging infrastructure.
To make up for the loss of fuel excise revenue, the state plans to charge electric car owners A $0.025 per kilometre in road use fees in the future, starting in 2027, or once electric vehicles account for 30 per cent of new car sales, whichever comes first.
Data show that electric vehicles accounted for only 0.7% of Australia's total car sales in 2020, and Australia is one of the slowest countries in the G-20 in terms of road decarbonization.