FAQs: Zero Emissions Vehicle (ZEV) Subsidy

The ZEV Subsidy is not means tested, however it only applies to vehicles under the dutiable value of $68,740 for the first stage of the program.

See Am I eligible?

Yes. To be eligible, the purchase price – which is the dutiable value of the purchase – must be under the cap of $68,740. The dutiable value includes:

• all manufacturer and dealership accessory add-ons
• dealer delivery fees
• GST.

The purchase price does not include:

• the subsidy amount as a discount
• stamp duty, registration and compulsory third party-insurance costs.

See Am I eligible?

No. There is no minimum price requirement for your ZEV purchase to be eligible for the subsidy.

See Am I eligible?

To achieve Victoria’s emissions targets, we need to make changes for as many people as possible. The subsidy is configured to reach a large number of Victorians, increasing the number of ZEVs in a short period.

ZEVs have reduced running costs and purchase prices are expected to reduce over time, as with all new technologies.

The ZEV subsidy is GST free when paid to Traders. Traders must ensure the full GST amount is recognised on the respective eligible vehicle tax invoice and paid in full to the ATO.

Purchasers should seek independent tax advice.

The ZLEV Road User charge requires registered owners of vehicles that emit zero or low emissions to make a contribution to funding Victorian roads. ICE vehicle owners make this contribution through the fuel excise tax. The ZLEV Road User charge depends on the vehicle type and how far it is driven. As ZLEVs have environmental benefits the amount charged is less than the fuel excise tax. Vicroads requires registered owners provide an odometer reading to calculate this amount.

For more information please visit: ZLEV road-user charge: VicRoads

Only battery electric passenger vehicles and fuel cell electric vehicles (FCEV) are eligible under the program. Battery electric passenger vehicles are currently commercially available in Victoria, while FCEVs are still emerging as a consumer market.

Of the vehicles covered, only those priced under $68,740 are eligible for the subsidy in the first stage of the program.

See Am I eligible?

No, plug-in hybrid vehicles (PHEVs) are not eligible for the subsidy as they are not zero emissions vehicles. Like battery electric vehicles, they have an electric motor powered by a lithium-ion battery, however, they also have a ‘range-extending’ or ‘power assist’ petrol-based internal combustion engine.

PHEVs are already cost competitive with many internal combustion engine vehicle (ICEV) models. While they are often superior to ICEVs in their environmental performance and are a familiar stepping-stone on the path to ZEV uptake, this subsidy applies only to ZEVs.

No. The ZEV Subsidy is aimed at increasing the number of ZEVs on the road, so it applies only to the purchase of new cars, not resales.

The subsidy does, however, apply to ZEV demonstrator models that are on-sold from the dealership on or from 2 May 2021. See the FAQ about demonstrator models below.

Yes. Demonstrator ZEV models that are on-sold from the dealership on or from 2 May 2021 are eligible for the ZEV Subsidy.

All other eligibility criteria will need to be met.

Yes. The ZEV Subsidy applies to ZEV purchases made under leasing arrangements. To be eligible, the leased ZEV must be registered by VicRoads in the name of an individual or a corporation (company or incorporated association). There can only be one registered operator per vehicle. The subsidy cap of one per individual and two per corporation (business) still applies.

To register a vehicle in the name of a company, the company must have a VicRoads customer number.

All other eligibility criteria will need to be met.

Yes. Victorian businesses participating in the EV Charging for Business Fleets (EVCBF) program and with premises in Victoria can apply for the ZEV Subsidy for up to two vehicles. All other eligibility criteria will need to be met.

The purpose of the EVCBF program is to support the transition of business vehicle fleets to EVs and is open to organisations operating in Victoria that are commercial-for-profit, not-for-profit or a community organisation. For more information about the EVCBF program, see the DEECA Energy website.

No. Local councils are not eligible under this program.

The purpose of the EVCCF program is to support the transition of local council vehicle fleets to EVs. For more information about the EVCCF program, see the DEECA Energy website.

We have listed car dealers participating the ZEV Subsidy program at Find a participating ZEV trader.

The only way individual and business customers can access the subsidy from 17 November 2021 is through dealerships who have registered with Solar Victoria to participate in the ZEV Subsidy program.

No, but the dealership needs to be able to register the vehicle in Victoria. There are a small number of Licensed Motor Car Traders (LMCTs) neighbouring the Victorian border that are permitted by VicRoads to register vehicles in Victoria. Interstate LMCTs must meet the participation criteria and be listed as a ZEV trader.

See Find a participating ZEV trader.

The number of subsidies remaining in the current release is published on our webpage here.

Since the program commenced on 2 May 2021, we have seen strong uptake for the first round of 4000 subsidies. Once exhausted, a new round of subsidies will be made available to help Victorians purchase a new ZEV and get them driving the future of transport sooner. More than 20,000 subsidies will be made available under the program.

Funding of the ZEV Subsidy program is subject to demand and will run until the subsidies are exhausted but will conclude on 30 June 2024 if all subsidies are not claimed.

No. The ZEV Subsidy is only available to purchases made on or after 2 May 2021. This means:

• the date of the contract of sale must be on or after 2 May 2021
• any initial payment of money between the applicant and the car dealer or manufacturer must not be earlier than 2 May 2021.

For example, a customer who purchased a ZEV in February 2021, paid an initial deposit or signed an agreement, and took delivery on 10 May 2021 will not be eligible.

No. The purchased vehicle will need to be currently available or registered within a reasonable timeframe (less than six months from the date of purchase) to secure the subsidy.

All other eligibility criteria will need to be met.