Can you get a discount for buying an electric vehicle?
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In Australia, there are over 180,000 electric cars on the road with numbers expected to increase in the coming years. The rise in popularity of electric vehicles (EVs) can, in some part, be attributed to the EV car incentives put forth by the Federal government, states and territories, as well as car finance lenders.
Electric vehicles offer a range of benefits but are a more expensive alternative to fuel-powered cars. This is where electric car incentives come in and lower the cost of purchase or offer exemptions on related costs.
If you’re thinking of purchasing an electric vehicle, here’s an updated list of rebates, incentives, and discounts you can enjoy in 2025.
Federal Government EV Incentives
The Australian Government offers a range of incentives and EV rebates. These are available regardless of the state or territory you live in.
Electric Car Discount
The Electric Car Discount consists of the Fringe Benefits Tax Exemption and import tariff exemption on vehicles below the luxury car threshold for fuel-efficient vehicles.
The Fringe Benefits Tax Exemption is available for novated leases and company cars. The exemption removes tax for electric vehicles under $89,332. This EV incentive also reduces the purchase cost of EVs and covers car running costs through a novated lease.
The discount will apply to battery electric vehicles (BEVs), hydrogen fuel cell vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) made available for use on or after 1 July 2022. Take note, the Fringe Benefits Tax Exemption is set to expire for plug-in hybrid vehicles on 1 April 2025.
Higher Luxury Car Tax threshold
In Australia, those buying cars in a certain price range will have to pay an additional luxury car tax. However, the threshold for luxury electric vehicles will be significantly higher than for non-electric vehicles. This means those who buy luxury electric vehicles can enjoy lower luxury car taxes.
For the 2024-2025 financial year, the luxury car tax threshold for electric vehicles is $91,387. In comparison, the threshold for non-electric vehicles is $80,567.
State-by-state Electric Car Incentives for 2025
Some states have recently concluded their EV rebate schemes, however, there are many who offer registration exemptions and more.
Here’s a quick breakdown of government EV incentives per state and territory:
| State | Electric car incentives |
|---|---|
| Australian Capital Territory |
Motor vehicle duty exemptions for new and used zero-emission vehicles, and plug-in hybrid and hybrid vehicles bought from 1 August 2022 onwards. Used HEVs and PHEVs are exempt from motor vehicle duty if they were bought from 1 July 2023 onwards. PHEV and HEV owners can get a 20% discount on registration fees for up to 12 months for vehicles registered before 30 June 2024 with emissions of 130g/km or less. |
| Western Australia |
Buyers of new light zero-emission vehicles (fully powered by batteries or hydrogen fuel cells) can apply for the Zero Emission Vehicle (ZEV) Rebate. A $3,500 for eligible EVs with a dutiable value of $70,000 or less. This EV rebate is available only until 10 May 2025 or to the first 10,000 eligible vehicles licensed in WA (whichever comes first). |
| Tasmania | The Electric Vehicle Program for EV rebates has closed. |
| Northern Territory |
Free registration for new and existing electric vehicles and stamp duty concessions of up to $1,500 are available for vehicles valued up to $50,000. These EV registration and stamp duty concessions are available until 30 June 2027. |
| New South Wales | Electric vehicle rebate ended on 1 January 2024. |
| Queensland |
Electric vehicle owners can get a 1% discount on stamp duty and a discount on annual registration costs. Electric vehicle rebate ended on 2 September 2024. |
| South Australia |
Electric vehicle owners can get a three-year registration discount. Electric vehicle rebate ended on 1 January 2024. |
| Victoria | Electric vehicle owners can get a discount on registration costs. |
Electric car loan discount
In addition to government EV rebates and incentives, electric car buyers can also enjoy discounted car loans. At loans.com.au, we offer discounted rates for electric car loans. These special loans for electric vehicles reward borrowers for making the more environmentally conscious choice.
With an electric car loan from loans.com.au, you can enjoy all the features of a standard car loan like redraw facilities and more but with lower rates saving hundreds (if not thousands) of dollars over the life of the loan.
Ready to apply for an electric car loan?
To qualify for our green discount car loan, the vehicle needs to be an electric or hybrid car. Speak with one of our friendly lending specialists by calling 13 10 90 to know if you’re eligible and learn more about your car loan options.
If you’re ready to buy your electric car, apply for a loan today! Our online loan application process is quick and easy so you can drive off in your dream car sooner.
Find out in under 2 minutes if you qualify for one of our low rate car loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
