About the program
The Zero Emissions Vehicle (ZEV) Subsidy reduces the upfront cost of a new zero emissions vehicle to get more Victorians driving the future of transport sooner.
Buying a new vehicle is a big decision. $46 million of the Roadmap’s $100 million dollar package of policies and programs is dedicated to helping Victorians purchase more than 20,000 ZEVs.
What are zero emissions vehicles?
ZEVs are an important step in Victoria’s transition to a clean energy future – a transition away from fossil fuel powered vehicles to a cleaner, greener and now more affordable way of driving.
Just as the name indicates, ZEVs have zero tailpipe emissions, making them better for the environment and for our health than a fossil-fuelled internal combustion engine vehicle. They don’t use petroleum fuels. ZEVs can help significantly reduce emissions, especially when using clean, renewable energy. This means that they also reduce the amount of air pollution, making our cities and towns more liveable.
Battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) are examples of these technologies.
Battery electric vehicles are currently commercially available in Victoria, while FCEVs are still emerging as a consumer market. Battery electric vehicles are powered by a rechargeable in-built battery, which is charged by an external power source.
Plug-in hybrid vehicles are not ZEVs. Like BEVs, 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.
How much is the subsidy?
The first release includes 4000 subsidies valued at $3,000 for eligible new ZEVs purchased on or after 2 May 2021.
More than 20,000 subsidies are available under the program, offered until the subsidies are fully committed, or for three years, whichever occurs sooner.
Am I eligible?
The ZEV Subsidy is available to Victorian residents and businesses with a registered office in Victoria.
At this stage, the subsidy is available to Victorians for one vehicle purchase and to businesses for the purchase of up to two vehicles. It is subject to availability and can only be applied:
- once per ZEV
- once per individual
- twice per business.
To be eligible for a ZEV Subsidy you must be:
- an individual resident in the State of Victoria, with a Victorian driver licence; or
- a business applicant with a registered office in the State of Victoria.
The vehicle must be:
- an eligible ZEV model that is a passenger car
- with a purchase price (dutiable value) under the threshold of $68,740 (see the tax invoice examples below)
- purchased brand new or as a demonstrator model (see for definition of a demonstrator model)
- purchased on or after 2 May 2021, as dated on the Contract of Sale.
- purchased through a participating ZEV trader
- registered in the State of Victoria.
- delivered and registered with VicRoads within a maximum of 6 months from the date the customer enters into the Contract of Sale.
The following are not eligible for the ZEV Subsidy:
- Licenced Motor Car Traders
- Government entities (including local councils)
- Motorcycles and other vehicle types, including plug-in hybrid vehicles.
Determining the purchase price eligibility
Any ZEV purchase where the dutiable value is above $68,740 will not be eligible to receive the subsidy. The example invoices below show where the purchase price of the car is assessed against the $68,740 threshold to determine eligibility for the subsidy.
How to display the subsidy amount in a tax invoice
You are also required to upload the tax invoice document in the portal. The Tax Invoice must itemise the ZEV Subsidy. To overcome barriers within Dealer Management Systems, you can either display the subsidy as a discount (see Example 1) or a deposit (see Example 2). The example invoices show where you should display the amount in each scenario.
Evidence of Victorian resident status requires a valid Victorian driver licence to be provided for the subsidy application.
Business applications will require evidence of an Australian Business Number registered on the Australian Business Register.
How can I receive the subsidy?
Under this point-of-sale process:
- your car dealer will ask you for information, including your Victorian driver licence (a mandatory eligibility requirement), to apply for the subsidy on your behalf
- you will be notified by email to confirm that the car dealer has applied for the subsidy on your behalf, then
- if all eligibility criteria are met, the car dealer will apply the subsidy as a discount to your final payment and you will see the subsidy discount applied to your eligible ZEV on the purchase documents.
More ways to drive our clean energy future
You can drive the future of transport and our clean energy future even further with solar panels on your roof and a solar battery at home.
With solar panels, you have the potential to drive completely carbon neutral, charging your car from the clean power you generate throughout the day with affordable, renewable energy. And with a solar battery you have the flexibility to charge your car with the renewable energy from your solar panels at any time.
This fact sheet outlines the information on this page:
This short guide provides useful information for people who are driving the future of transport:
This fact sheet shows where the purchase price of the car is assessed against the $68,740 threshold to determine eligibility for the subsidy:
Reviewed 06 April 2022