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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 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, dealerships, and industry bodies to set up the ZEV Subsidy payment process.

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.

For more information, see Zero emissions vehicles.

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 new ZEVs purchased on or after 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.  

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 registered with VicRoads. 
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? 

Purchases on or from 2 May 2021

Solar Victoria has been working with industry to develop the subsidy payment process so that the subsidy can be applied at point of sale through your dealership.  

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

So we can contact you to commence this payment process, please register your interest below. 

Please select the first option under “What best describes you?” to let us know that you have made a purchase.

We will then contact you directly to confirm eligibility and to make arrangements for the subsidy payment after the vehicle is registered with VicRoads.  

We will review the following documents to confirm your eligibility:  

  • A valid Victorian driver’s licence that matches the name on the contract of sale. 
  • Contract of sale – if you do not have this, please contact your car dealer for a copy. 
  • Tax Invoice – if you do not have this, please contact your car dealer for a copy. 
  • Certificate of Registration from VicRoads – if you do not have this, please contact VicRoads for a copy.  
  • If you are applying as a business, either the Australian Corporation Number or Australian Registered Business Number that the ZEV was registered under.  

We will also ask you to complete an online application form and ask you to nominate bank account details so we can pay the subsidy to you directly. If you have registered with us, we will notify you when this form is available.  

Please note: to register your ZEV with VicRoads, and therefore to have the ZEV Subsidy paid, your vehicle must be delivered to you.

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

Purchases when the subsidy is applied through dealerships

Once all necessary systems and industry agreements are in place, we will transition to a simpler payment process.

The $3,000 subsidy at this time will be applied at point of sale through the dealership. This means the eligible new ZEV you purchase from the dealership will be discounted by $3,000.

It will be deducted from the price and will be verified and payable after the vehicle is registered at a Victorian address. 

These customers will not need to apply separately for the ZEV Subsidy. 

Contact

Register your interest 

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

We will endeavour to 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.   

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 Victoria's luxury car 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 on or 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 $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 15 June 2021

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