Queensland offers Australia’s most generous EV incentives

The Queensland Labor state government has doubled its residential electric vehicle rebate from $3,000 to $6,000 and raised the price cap on new vehicles eligible under the program to $68,000, increasing the range of cars available is expanded.

Applicants must have a combined household income of $180,000 or less to be eligible for the maximum discount under the Zero Emission Vehicle Discount Program.

As of today’s announcement, the double rebate applies exclusively to eligible households – that is, two individual $3,000 rebates – but individual shoppers and households above the income threshold will still have access to the legacy $3,000 rebate.

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Applicants who have already applied for and received a $3,000 rebate under the previous program and who are below the total gross income threshold will be considered eligible for reevaluation and additional payment of the $3,000 rebate.

Raising the threshold to $68,000 means buyers have access to far more choice than the old $58,000 cap, with the network expanding to include vehicles like the Cupra Born, Nissan Leaf e+ and Polestar 2.

And most importantly, of course, it also entitles the best-selling Tesla Model 3.

EVs starting below the threshold:

Queensland Minister for Energy, Renewable Energy and Hydrogen Mick de Brenni never misses an opportunity to pick up political points:

“We see EV prices fluctuating due to rising material costs and inflation left behind by the Morrison government, so we increased the price cap allowed… and increased the rebate amount.”

“We want more zero-emission vehicles on Queensland’s roads so Queensland families have access to cheaper and cleaner vehicles.”

The program is also open to businesses, with the government program allowing Queensland companies to apply for up to five rebates per fiscal year.

“This is an opportunity for Queensland companies to help reduce emissions by transforming their fleet operations,” added Mr. de Brenni.

However, electric cars managed or leased through a leasing or fleet organization seem to be excluded, as are used cars.

Details of the new requirements and an updated application form will be available online from July 1, 2023. The current system will remain in place until then, so the government is advising “every person buying a new electric vehicle… to record proof of purchase to access the rebate”.

The government also says the program will boost the used market and make electric vehicles more affordable in the years to come.

The Queensland Government has pledged $45 million (the theoretical equivalent of 7500 payments of $6000) to the rebate program, which will be offered until funding is exhausted. As of this week, 1,135 of the old $3,000 rebates had already been approved.

The RACQ Motoring Club praised the move, saying its research showed the full $6,000 rebate would have a positive impact on electric vehicle prices, making some electric models the same cost or even cheaper than their gasoline peers.

“For example, with the increased discount, the MG ZS Excite EV and its petrol counterpart, the MG ZST Excite 1.3L, would cost approximately $1032 per month to own and operate over a five-year loan,” it said.

“A Tesla Model 3 would be cheaper than its closest petrol peer, the Honda Accord Vti Turbo 1.5, which costs $1534 or $1550 per month.”

Joshua Cooney, general manager of advocacy, said it was clear more Queenslanders were interested in buying electric vehicles, with the Australian Automobile Association (AAA) EV Index showing new electric car sales in the state in the first three months of 2023 had increased by 79.6 percent.

The panel asked the government to make the program available to cars bought on novated leases.

As we recently reported in our Quarterly EV Report, Queensland’s EV market share is 6.5 percent, larger than Victoria (5.3 percent) but lower than New South Wales (7.6 percent).

EV sales in the first quarter of 2023 by state:

• New South Wales: 6399, 7.6 percent market share
• Queensland: 3,892, 6.5 percent market share
• Victoria: 3621, 5.3 percent market share
• Western Australia: 1524, 5.5 per cent market share
• Australian Capital Territory: 838, 18.9 percent market share
• South Australia: 787, 4.4 per cent market share
• Tasmania: 295, 6.5 percent market share
• Northern Territory: 43, 2.0 percent market share

While Queensland’s EV discounts are now the highest in Australia, all regions are now offering their own support packages to increase adoption.

For example, New South Wales is funding $25,000 of $3,000 rebates on EVs under $68,750 and eliminating stamp duty on EVs under $78,000, while Victoria is funding $3,000 rebates on EVs under $68,740 become.

The biggest rebates to date have belonged to Western Australia, which announced an EV support package in May 2022 that includes $3,500 in rebates for buyers spending under $70,000.

MORE: What electric car purchase incentives are on offer across Australia?