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
The purchase price does not include:
- the subsidy amount as a discount
- stamp duty, registration and compulsory third party-insurance costs.
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. Traders can seek further advice from their Tax Agent.
Purchasers should seek independent tax advice.
Vehicle types covered
Only battery electric vehicles and fuel cell electric vehicles (FCEV) are eligible under the program. Battery electric 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.
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.
To be eligible, the ZEV demonstrator model must also meet the definition of a demonstrator vehicle as specified for the and clearly state the vehicle is a demonstrator model on the tax invoice / contract of sale, with the odometer reading listed.
In the ZEV trader terms and conditions, a demonstrator model is:
- registered initially in the name of the participating ZEV trader only
- is available and used for demonstration to customers, aimed at selling vehicles of the same class and during normal trading hours at their business premises
- has travelled a distance of 7,500km or less since its acquisition and initial registration in the name of the ZEV Trader as a demonstrator vehicle
- has been held for less than 12 months after it has been initially registered in the name of the ZEV trader as a demonstrator vehicle.
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.
Eligibility under other programs
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 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 .
Where to buy
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.
When to buy
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.
ZEV facts and useful links
This short guide also provides information for people who are driving the future of transport:
Other useful links include:
Reviewed 06 January 2023