Charging Forward: The Evolution of Australia’s EV Market

The Australian Government is undertaking a national approach to increase the uptake of Electric Vehicles (EVs) through the National Electric Vehicle Strategy (NEVS) to meet decarbonisation targets in Australia’s Net Zero Plan. The three key objectives of the strategy are to “increase the supply of affordable and accessible EVs, establish the resources, systems and infrastructure to enable rapid EV update and encourage increased EV demand”.1

Earlier this year, the Albanese government introduced a New Vehicle Efficiency Standard that is expected to give consumers a greater range of fuel-efficient cars that produce low to zero emissions to choose from. To support this initiative the government has also launched the ‘Modern, Cheaper-to-Run Cars’ campaign to raise consumer awareness about the benefits of EVs.

Most states and territories have also developed their own strategies to increase the uptake of EVs as outlined in the table below:2

State / Territory

Initiative

Aim

Status

ACT Zero Emissions Vehicles Strategy 2022‑303 80-90% of new light vehicle sales to be zero emissions vehicles by 2030.

Phase out internal combustion engine vehicles by 2035.

As of August 2024, 9,193 zero emission vehicles (ZEVs) were registered in the ACT.4

This number is expected to grow as the ACT introduces and maintains multiple financial schemes further incentivising the uptake of EVs as follows:

  1. No motor vehicle duty is payable for new and used ZEVs purchased after 1 August 2022, reinforced by further amendments to the Duties Act 1999 (ACT) in 2024.5
  2. From 1 July 2024, the method for calculating vehicle registration fees for light vehicles changed from a weight-based system to an emissions-based system. The effect is that cheaper registration fees apply for low to zero emission vehicles compared to higher emission vehicles within the same weight range.6
NSW Electric Vehicle Strategy7 EV sales to account for 52% of new car sales by 2030-31 and a majority of total car sales by 2035. In 2023, NSW saw a 9% growth in EV sales, bringing the total proportion of EVs in the NSW market to just under 10%.8

Pending further information to be released in the 2024 report, it is anticipated that EV sales will continue to grow. NSW recently announced $73.5 million in grants to promote the rollout of essential public charging infrastructure, encouraging the continued uptake of EVs by consumers and local businesses.9

Net Zero Manufacturing Initiative10 Develop local manufacturing capacity for renewables and components for the renewable sector. Applications have closed for each of the funding streams available under the Net Zero Manufacturing Initiative with all application outcomes to be notified by late 2024.11
NT Electric Vehicle Strategy and Implementation Plan 2021 – 202612 Increase the number of government fleet EVs by 20 year-on-year, totalling 200 vehicles by 2030.

Encourage EV uptake by removing registration fees and reducing stamp duty for the next five years.

As of 31 August 2024, a total of 123 EVs are registered in the NT government fleet,13 well on track to meet its 200 EV target by 2030.

To incentivise EV uptake, the NT government will grant free registration and stamp duty concessions up to $1,500 for eligible plug-in electric vehicles until 30 June 2027.14

Following this incentive, the NT more than tripled its EV sales in 2023 compared to 2022.15

QLD Zero Emission Vehicle Strategy 2022-203216 Increase EV sales to 50% of new passenger vehicle sales by 2030 and 100% by 2036.

100% of eligible QLD Government passenger fleet vehicles to be zero emission vehicles by 2026.

In July 2024, 8.5% of total Queensland’s new passenger vehicle sales were zero emission.17

Further uptake was achieved under the ZEV Rebate Scheme.18 Offering rebates of up to $6,000, the scheme boosted EV car registrations by fourfold to 46,000 vehicles by 31 July 2024 before the scheme closed on 2 September 2024.19

Uptake of EVs in regional Queensland rose to 3,000.20

Zero Emissions Vehicle Action Plan 2022-202421
TAS Tasmanian Government Motor Vehicle Allocation and Use Policy22 100% of eligible government passenger fleet vehicles to be zero emission vehicles by 2030. This policy was implemented in July 2024 and is yet to see significant traction.
Energy Saver Loan Scheme23 Encourage investment in EV charging infrastructure by providing zero-interest loans, between $500 and $10,000 over three years, to individuals, small businesses and community organisations. The Tasmanian Government is extending funding under its broader No Interest Loan Scheme to provide for a further 2,000 loans per year.24
Electric Vehicle Rebate25 Encourage EV uptake by funding a $2,000 rebate for new or second-hand EVs that are new to Tasmania. There remain 21 rebates available as of 2 September 2024.26
VIC Zero Emissions Vehicle Roadmap27 400 VicFleet vehicles to be replaced by ZEVs by 2023. More than 100 ZEVs were ordered for the 2022 financial year.28
Install EV charging stations across regional Victoria by 2024. Multiple charging stations have been installed across regional Victoria. A map of Victorian EV charging stations is available here.29
All new public bus purchases to be ZEVs from 2025. In 2022, the government implemented a Zero Emissions Bus Trial.30

In 2024, as part of this trial, 27 electric buses are scheduled to operate from a new electric bus depot in Melbourne’s north-east.31

Increase EV sales to 50% of all light vehicle sales by 2030. EVs accounted for 7.5% of Victorian vehicle sales in 2023.32
WA State Electric Vehicle Strategy for Western Australia33 Encourage EV uptake, with 25% of all new light and small passenger, and small and medium SUV, government fleet vehicles to be EVs by 2025/26. As of 2023, at least 22.4% of total WA Government fleet vehicles are EVs.34
Develop EV infrastructure, including an EV charging network from Perth to Kununurra. The Perth to Kununurra EV network is currently under construction, with a majority of planned EV charging locations now constructed.35

A map of WA EV charging stations is available here.

* The information in the table is accurate as of September 2024.

Looking to the Future

Imminent changes to Australian standards on bidirectional EV charging and looming elections in the Australian Capital Territory, Queensland, Western Australia, Tasmanian, and the Commonwealth promise to initiate renewed discourse and EV policy both at the state and federal level.

The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.


1‘The National Electric Vehicle Strategy’, Department of Climate Change, Energy, the Environment and Water (Web page) <https://www.dcceew.gov.au/energy/transport/national-electric-vehicle-strategy>

2Figures included are taken from the Australian Government Department of Climate Change, Energy, the Environment and Water, Annual Climate Change Statement 2023 (Report, 2023).

3ACT Government, ACT’s Zero Emissions Vehicles Strategy 2022-30 (Report, 2021).

4ACT Government, Zero Emissions Vehicles (Web Page) < https://www.climatechoices.act.gov.au/transport-and-travel/zero-emissions-vehicles>.

5ACT Revenue Office, Motor Vehicle Duty (Web Page) < https://www.revenue.act.gov.au/duties/motor-vehicle-duty>; Duties Act 1999 (ACT) s 208, as amended by Taxation Administration (Amounts Payable—Motor Vehicle Duty) Determination 2024 s 6.

6Access Canberra, Emissions-based registration (Web Page) < https://www.accesscanberra.act.gov.au/driving-transport-and-parking/registration/emissions-based-registration>.

7Department of Planning, Industry and Environment, NSW Electric Vehicle Strategy (Report, June 2021).

8Electric Vehicle Council, Australian Electric Vehicle Industry Recap 2023 (Report, 14 March 2024) 4.

9NSW Climate and Energy Action, ‘New Grant Rounds Continue to Drive EV Charge in NSW’ (Media Release, 23 July 2024).

10NSW Climate and Energy Action, Net Zero Manufacturing Initiative (Web Page) < https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/net-zero-manufacturing>.

11Ibid.

12Northern Territory Government, Northern Territory Electric Vehicle Strategy and Implementation Plan 2021-2026 (Report, 2021).

13Northern Territory Government Department of Infrastructure, Planning and Logistics, ‘Electric vehicle strategy and implementation plan’ (Web Page) < https://dipl.nt.gov.au/strategies/electric-vehicle>.

14Ibid.

15Above n 8.

16Queensland Government, Queensland’s Zero Emission Vehicle Strategy 2022-2023 (Report, 2022).

17Queensland Government, ‘Queensland’s Zero Emission Vehicle Rebate Scheme closing soon’ The Queensland Cabinet and Ministerial Directory (Media Statement, 31 August 2024).

18QLD Government, Queensland Zero Emission Vehicle Rebate Scheme (Web Page, 3 September 2024) <https://www.qrida.qld.gov.au/program/queensland-zero-emission-vehicle-rebate-scheme>.

19Above n 17.

20Jasmine Hines, Cristy-Lee Macqueen and Ollie Wykeham, ‘Regional Queenslanders say electric vehicles worth it for fuel savings but challenges remain’, ABC News (online, 10 June 2024) <https://www.abc.net.au/news/2024-06-10/regional-rural-queensland-electric-vehicle‑uptake/103914408?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_
shared&utm_source=abc_news_web
>.

21Queensland Government, Queensland’s Zero Emission Vehicle Strategy – Action Plan (2022-2024) (Report, March 2022).

22Department of Treasury and Finance, Tasmanian Government Motor Vehicle Allocation and Use Policy (Report, July 2024).

23Renewables, Climate and Future Industries Tasmania, ‘Tasmania’s Energy Saver Loan Scheme’, Renewables, Climate and Future Industries Tasmania (Web Page) < https://recfit.tas.gov.au/grants_programs/energy_saver_loan_scheme>.

24Office of the Premier of Tasmania, ‘Helping families with cost-of-living challenges’ (Media Release, 3 September 2024).

25Renewables, Climate and Future Industries Tasmania, ‘Tasmania’s Energy Saver Loan Scheme’, Renewables, Climate and Future Industries Tasmania (Web Page) <https://recfit.tas.gov.au/what_is_recfit/climate_change/electric_vehicles/support>.

26Ibid.

27Victoria State Government, Zero emissions vehicles (Web Page, 6 May 2024) <https://www.energy.vic.gov.au/renewable-energy/zero-emission-vehicles>.

28Office of the Premier of Victoria, ‘Driving Zero Emissions Vehicles’ (Media Release, 23 February 2022).

29Department of Energy, Environment and Climate Action, ‘Electric vehicle charging locations’, Victoria State Government (Web Page, 7 May 2024) <https://www.energy.vic.gov.au/renewable-energy/zero-emission-vehicles/electric-vehicle-charging-locations>.

30Victoria State Government, Zero Emissions Bus Trial (Web Page, 3 May 2024) < https://www.vic.gov.au/zero-emissions-bus-trial>.

31Office of the Premier of Victoria, ‘Victoria Unveils First All-Electric Bus Depot’ (Media Release, 5 February 2024).

32Rebecca Valenzuela, John Inekwe and Hnin Inioluwa Tun Agbaje, ‘A region-based examination of electric vehicle take-up rates in Australia’ (2023) 7(1) Victoria’s Economic Bulletin 1, 5; citing Federal Chamber of Automotive Industries, VFACTS 2023 (Report).

33Department of Water and Environmental Regulation, State Electric Vehicle Strategy for Western Australia (Report, November 2020).

34Western Australia, Parliamentary Debates, Legislative Council, 16 February 2023 (Hon Dr Brad Petitt) Question Without Notice No. 81, Question to the Minister for Finance, Hon Sue Ellery replying <https://parliament.wa.gov.au/parliament/pquest.nsf/viewLCPQuestByDate/33BF30465E9DBE634825895D001A8ADA?opendocument> at 4 September 2024.

35Synergy, WA EV Network | Australia’s Longest Electric Vehicle Network (Web Page) <https://www.synergy.net.au/Our-energy/Projects/WA-EV-Network>.

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