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Zero Emissions Vehicle (ZEV) Subsidy

Charging electric vehicle
Charging electric vehicle

The Zero Emissions Vehicle Subsidy is available to Victorian residents and businesses and will support more Victorians to purchase a new electric vehicle sooner, accelerating Victoria’s path to net-zero emissions.

The Zero Emissions Vehicles (ZEV) Subsidy will be available for any eligible vehicle purchases from 2 May 2021 for three years or until the rebates are fully committed, whichever occurs sooner.

About the program

The ZEV Subsidy will reduce the upfront cost to the customer of purchasing a ZEV through a subsidy available at the time of purchase and arranged through the car dealership. This will support more Victorians to choose to buy an EV sooner and significantly increase the number of zero emissions vehicles (ZEVs) in Victoria over a short period. 

The subsidy is part of the Victorian Government’s Zero Emissions Vehicle Roadmap, a $100 million plan to fast track the transition to ZEVs before 2050. The plan has set a target of 50 per cent of light vehicle sales to be ZEVs by 2030, with $46 million to fund the ZEV Subsidy and support the purchase of more than 20,000 zero emissions vehicles, including battery electric vehicles.

The Victorian Government is working in partnership with ZEV manufacturers and suppliers to set up the ZEV Subsidy payment process, with first payments to car dealerships expected in July 2021. 

About zero emissions vehicles

ZEVs do not use petroleum fuels, and therefore do not emit greenhouse gas emissions from the tailpipe. Battery Electric Vehicles 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. The vehicles have no exhaust emissions and if charged from a renewable electricity source like solar, the carbon footprint is reduced even further.

In addition to lowering emissions, ZEVs can help improve air quality, leading to better health outcomes and offer other social and economic benefits. Zero emission vehicles also have the potential to provide services to our electricity grid including storage of electricity and stability.

How much is the subsidy?

Buying a new vehicle is a big decision. Reducing the up-front cost of an EV will bring EVs within reach of more Victorians who are considering this purchase. 

The first round includes 4000 subsidies valued at $3000. The value of subsequent stages will be finalised following consultation with the ZEV industry.

It will be available for eligible vehicle purchases from 2 May 2021. More than 20,000 subsidies are available under the program, offered in three rounds until the rebates are fully committed, or for three years, whichever occurs sooner.

Am I eligible?

The ZEV Subsidy is available to Victorian residents and businesses with premises in Victoria. 

At this stage, the subsidy program is available to Victorians for one vehicle purchase and to businesses for the purchase of up to two vehicles.  

Evidence of Victorian resident status and proof of identity will be confirmed through the registration process. Read more about proof of identity.

The subsidy will be available for purchases of ZEVs under $68,740 in the first stage of the program.

The vehicle must be a car. Motorcycles and other vehicles are not included in the subsidy.

How can I receive the subsidy? 

The ZEV Subsidy will be delivered through car dealerships and will be applied at the point of sale. The dealer will claim the subsidy on your behalf when you purchase an eligible ZEV. The Victorian Government is working with car companies to put these arrangements in place. It will be deducted from the price and will be verified and payable when the vehicle is registered at a Victorian address.

Customers do not need to apply separately for the rebate.

Purchasers of EVs from the day of launch on 2 May 2021, to when payments are available in July will be contacted directly to arrange payment.

Customers are advised to retain the following documents:

  • Car registration certificate
  • Contract of sale

Any purchases of ZEVs in Victoria before the launch of the ZEV Subsidy on 2 May 2021 will not qualify for the subsidy.

Contact

Register your interest 

Enter your details below to register for program updates about the ZEV Subsidy.

Phone

Call the DELWP Contact Centre on 136 186 from anywhere in Australia, Monday to Friday, 8am to 6pm. Costs may vary - mobiles and public telephones may incur additional costs.

If you are deaf, or have a hearing impairment or speech impairment, contact us through the National Relay Service on 133 677 or visit www.relayservice.gov.au

If you need assistance, please contact Translating and Interpreting Service (TIS) for help with translating and interpreting. Contact TIS National on 131 450 (within Australia) or visit www.tisnational.gov.au


FAQs

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

    Only vehicles priced under $68,740, will attract the subsidy in the first stage of the program. 

    It will apply to vehicles with a GST-inclusive value less than $68,740, excluding stamp duty, compulsory third-party insurance, registration and other charges. 

    The value of a car, for the purpose of the threshold, will be the sale price before deduction of the rebate, and includes the value of any parts, accessories or attachments supplied, or imported, at the same time as the car.

    Green cars above this threshold may be eligible for Victorian vehicle duty concessions.

  • Yes, the GST inclusive price must be under $68,740,  Excluding stamp duty, compulsory third party insurance, registration and other charges.

    The value of a car, for the purpose of the threshold, will be the sale price before deduction of the rebate, and includes the value of any parts, accessories or attachments supplied, or imported, at the same time as the car. 

  • No. There is not a minimum price requirement.

  • No, you will not be able to receive the subsidy for a Plug-in Hybrid Vehicle.  The subsidy applies to ZEVs only. PHEVs are already cost competitive with many ICEV models.

    Other low emissions vehicles technologies such as plug-in hybrid-electric and hybrid vehicles will not be eligible for this subsidy. Plug-in hybrids are often superior to internal combustion engine vehicles  in their environmental performance and are a familiar stepping stone on the path to ZEV uptake, however this subsidy is only focused on ZEVs.     

  • No. The subsidy applies to purchases of new cars only, not resales, to increase the number of EVs on the road.

  • No, at this stage of the ZEV subsidy release, rebates will be for purchases of new ZEVs by Victorians and businesses.

  • There will be no means testing to the subsidy, however it will only apply to vehicles under the luxury vehicle threshold of $68,740 -for the first stage of the program.

  • Yes, the car must be purchased from a Victorian dealer where they can register the new car in Victoria.

  • No. The purchased vehicle will need to be currently available or registered within a reasonable timeframe (at this stage, less than three months from contract) to secure the subsidy. The timeframe and other program rules will be designed in consultation with the industry and published in coming days. This is to allow each stage of the subsidy to be processed in order.

  • The funding in the package will be subject to demand and run until the subsidies are exhausted but will conclude on 30 June 2024 if all subsidies are not claimed.  

  • No, only eligible purchases registered from 2 May 2021 will be able to receive the subsidy.

  • The subsidy is configured to reach a large number of Victorians and so that the number of ZEVs in Victoria can increase significantly in a short period. To reach Victoria’s emissions targets, we need to make changes for as many people as possible. 

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

  • ZEVs are less expensive to run with reduced maintenance, as they have fewer moving parts that require regular servicing or that might need to be replaced, with savings estimated to be $300 per year.

    Battery electric vehicles have significantly lower ‘re-fuelling’ costs per kilometre with savings on fuel estimated to be upwards of $1300 per year.

  • Battery electric vehicles can be charged through mains electricity, using grid or solar energy. Victoria already has a network of charging stations in public spaces including key tourist and community destinations across the State. There are shopping centres and newer apartment buildings with stations. The ZEV Roadmap has set out $19 million to upgrade charging infrastructure across Victoria to meet the demand.

    You can search for EV charging stations at www.plugshare.com (Note - if the site asks for registration, you can close the registrations dialogue box and search without registering.)

  • Battery range and its impact on travel needs - or ‘range anxiety’ - is a common concern when it comes to purchasing a ZEV. However, many ZEVs currently available in Australia, such as the Nissan Leaf and Hyundai Kona, can travel 300-400 kilometres on a single charge - greatly exceeding the daily travel distances for all but a few Victorians.

    To support those undertaking longer-distance travel in ZEVs, such as to or within regional Victoria, the Government is investing in a further roll-out of electric vehicle charging infrastructure – on our highways, in regional towns and tourist spots, and at other high-use locations – to create a readily accessible and coordinated network of public charging infrastructure across Victoria.

    You can already drive from Adelaide to Melbourne to Sydney with easy access to electric vehicle charging infrastructure. And every year, we’re adding new charging stations that are charging ever faster to accommodate this exciting, inevitable shift to a ZEV future.

  • In 2019-2020, around 2000 light passenger battery electric vehicleswere registered in Victoria out of a total of about 4.9 million light vehicles on the road. Industry data suggests around 1 300 battery electric vehicles were sold in Victoria in 2020, including higher-priced vehicles not eligible for the subsidy.

    Sales have grown steadily from a small base every year, as consumers understand more about the benefits and technology of these cars, as well as ever improving range of vehicles and better technology reduces the barriers to the purchase

    The purchase of more than 20,000 lower-cost ZEVs will be supported through this program if all subsidies are taken up over the next three years, which will expand the number of zero emission vehicles significantly.

Reviewed 07 May 2021

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