The NSW Labor government has announced that electric vehicles (EVs) costing more than $78,000 and purchased in the last two years will be exempt from the upcoming EV road tax, which will be implemented from mid-2027. However, the government also revealed that the current rebates of $3,000 for EVs under $68,750 and stamp duty exemptions for EVs under $78,000 will be removed by the end of 2023. This means that while high-priced EVs will avoid the road tax, they will still need to pay stamp duty. The government clarified that EVs purchased before January 1, 2024, without a stamp duty exemption will not be subject to the road user charge.
The exemption applies not only to wealthy EV owners with vehicles like the Mercedes and Porsche Taycan priced over $300,000 but also to early adopters who purchased EVs before the stamp duty exemption was introduced. From 2024 onwards, EVs bought after January 1 will have to pay both stamp duty and the road user charge. The removal of stamp duty exemptions is estimated to save $498 million over the next four years.
The Labor government plans to replace the rebates with a $260 million funding commitment for new EV infrastructure, including regional fast charging stations and roadside charging in major population centers. Additional details about the funding will be released in 2024 when a refreshed EV strategy is unveiled.
Source: The Driven
– Road user charge: a tax or fee imposed on road users to contribute to the cost of road infrastructure.
– Stamp duty: a tax imposed on certain documents, such as property sales, vehicle registration, and insurance policies.
– EV rebate: a financial incentive given by the government to encourage the purchase of electric vehicles.