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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 that was purchased on or after 2 May 2021 for three years or until the subsidies are fully committed, whichever occurs sooner.

About the program

The ZEV Subsidy will reduce the cost to the customer of purchasing a ZEV. This will support more Victorians to choose to buy a ZEV sooner and significantly increase the number of ZEVs in Victoria. 

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.

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. ZEVs also have the potential to provide services to our electricity grid including storage of electricity and stability.

For more information, see Zero emissions vehicles.

How much is the subsidy?

Buying a new vehicle is a big decision. Reducing the cost of a ZEV will bring them within reach of more Victorians who are considering buying one. 

The first round includes 4000 subsidies valued at $3000 for eligible new ZEVs purchased on or after 2 May 2021. The value of subsequent stages will be finalised following consultation with the ZEV industry.

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 premises 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.  

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

To be eligible for a Victorian Government ZEV Subsidy: 

  • You must have purchased your new ZEV on or after Sunday 2 May 2021
  • The dutiable value of the vehicle (the total price of the vehicle, inclusive of all added options and accessories, but excluding stamp duty, registration and compulsory third-party insurance costs) must be less than $68,740 (see the tax invoice examples below). 
  • The ZEV must be delivered and registered with VicRoads and your application for a subsidy submitted within a maximum of 6 months of the date of purchase.
  • You must be residing in Victoria and have not previously applied for or received a ZEV Subsidy (or in the case of a business, no more than one previous ZEV Subsidy).
ZEV Invoice examples

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

How can I receive the subsidy?

If you purchased an eligible new ZEV on or after 2 May and the subsidy was not applied to the contract of sale, Solar Victoria will pay the $3,000 subsidy directly to you. 

So that we can commence an eligibility check and the subsidy payment process, please follow these instructions in the one of two scenarios that applies to you:  

1. If you have taken delivery of your ZEV 

If you have taken delivery of your ZEV and it has been registered with VicRoads, you will need to complete and submit an online application form within a maximum of 6 months of the date of purchase.   

This requirement confirms that the contract of sale has been fulfilled and eligibility criteria have been met by all parties. 

How to apply

2. If you have not yet taken delivery of your ZEV 

If you have not yet taken delivery of your ZEV, please do not apply now. Instead, please:  

  • register your details with us by selecting the first check box, then 
  • wait until you have taken delivery of your ZEV and the vehicle has been registered with VicRoads before applying for the subsidy at the link above.  

Solar Victoria is working with industry to develop a simpler payment process so that the subsidy can be applied at point of sale. This process is not yet in place.

Register with us

Enter your details below to let us know if you have purchased an eligible new ZEV and have not yet taken delivery of it or to receive updates about the ZEV Subsidy. 

We will be back in touch as soon as we can. Please also re-visit our website and the FAQs. We’re updating these regularly and you might find the information you are after there.   

Contact us 

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.

  • 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 1 per individual and 2 per corporation 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. 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 State Revenue Office Motor Vehicle Exemption Requirements and clearly state the vehicle is a demonstrator model on the tax invoice / contract of sale, with the odometer reading listed.  

    All other eligibility criteria will need to be met. 

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

  • No, not in every case. There are a small number of Licensed Motor Car Traders (LMCTs) neighbouring the Victorian border that are licensed by VicRoads to sell and register vehicles in Victoria.

    New ZEVs purchased interstate are eligible for the subsidy provided the ZEV is registered with VicRoads for use in Victoria. This means that LMCTs licensed by VicRoads to register new vehicles in Victoria can sell ZEVs that are eligible for the subsidy. 

    If you are purchasing a ZEV interstate, please ask the dealership if they are licensed by VicRoads to register new vehicles in Victoria.

    All other eligibility criteria will need to be met.

  • 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. 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
    • no written or verbal commitment to purchase can 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 under the Terms and Conditions.

  • 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 $1,300 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 23 July 2021

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