NSW electric vehicles legislation passes with cross-party support

Joseph Brookes
Senior Reporter

Legislation underpinning the New South Wales government’s electric vehicle strategy passed Parliament on Wednesday with bipartisan support, paving the way for the introduction of a road user charge for EVs and their exemption from stamp duty

The measure is part of the state government’s $480m electric vehicles (EV) package announced earlier this year, which also includes limited $3,000 rebates on some new vehicles and the roll out of charging stations.

Together, the measures make the New South Wales the most supportive state of low emission cars in the country.

Legislation allowing the introduction of a road user charge for electric vehicle and some of their exemption from stamp duty has passed New South Wales Parliament

“This is a comprehensive suite of measures, which ensures we have the right mix in place to boost the take-up of electric vehicles and give people access to the latest technology,” New South Wales premier Dominic Perrottet said.

“The strategy also starts us down the road of long-term tax reform as we embark on phasing out stamp duty on electric vehicles and making sure everyone who drives on our roads contributes to their funding and maintenance.”

The road user charge will require owners of electric vehicles to pay 2.5c per kilometre driven on public roads. Similar EV road user schemes are being introduced in Victoria and South Australia.

In New South Wales the tax will be deferred until 2027 or when EVs make up at least 30 per cent of new car sales, in a bid to encourage uptake.

New South Wales is also exempting electric vehicles under $78,000 from stamp duty and is offering $3000 rebates for the first 25,000 purchasers of battery and hydrogen fuel cell electric vehicles under $68,750.

The state government has also promised to invest a further $171 million to co-fund EV charging infrastructure with private operators.

Treasurer and environment minister Matt Kean said the strategy will ensure at least 50 per cent of new cars sales are EVs by 2030.

“To achieve net zero emissions by 2050, the majority of new cars sold in NSW need to be EVs by 2035,” Mr Kean said.

“This is the beginning of an EV revolution in NSW, with more drivers set to benefit from lower taxes and $3,000 rebates on their next EV purchase.”

The Electric Vehicles (Revenue Arrangements) Bill 2021 passed New South Wales Parliament with amendments on Wednesday, with support from Labor and the Greens.

The Greens secured amendments to minimise the disclosure of personal information collected in relation to the road user charges, including an option to supply the information in a non-automated way, financial hardship payment concessions, and for the reporting of EV uptake by the government.

Labor also secured a requirement to review the Act in two years.

New South Wales One Nation member Mark Latham criticised the legislation and the Opposition’s support for it, saying the money should be spent on reducing tolls.

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1 Comment
  1. Digital Koolaid 3 years ago

    Dominic Perrottet said the “right mix” in place to boost the take-up of electric vehicles and give people access to the latest technology was – wait for it guys – to create a NEW TAX. Oh, sorry Dom, it’s a Road User Charge, not a tax. Like John Howard said a fuel excise wasn’t a tax. Semantic geniuses. Anyone who ever read a book on economics knows he effect of a tax is to reduce Marginal Propensity To Consume (MPC). Electric cars already have a price disadvantage and it’s hard to make a business case. So the Perrottet government’s answer is – TAX IT it to make the business case worse. Watch the tax – errrr, RUC – get indexed against the CPI next. Superior economic management at work in NSW. (ps. Tell Dom there’s already a RUC called vehicle registration and everyone who drives on our roads already contributes to their funding and maintenance – 100% to the state government, not via the Feds).

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