Much like the rest of the world, there’s a heightened focus on climate change in Australia between policymakers and voters. Reducing carbon emissions is at the forefront of this change that was largely kickstarted by the Paris Agreement in 2015. 

According to the Green Vehicle Guide, light vehicles account for 11% of greenhouse gas emissions in Australia. Therefore, reducing this footprint is seen as one of the tools to help Australia meet its emissions targets.

Interestingly, even the car shipping industry which we’re a part of has invested in electric vessels to carry goods globally. Norwegian companies seem to be leading the way with 2 autonomous electric RoRo vessels already being built. 

More specifically, in this article, we’ll cover the incentives and actions taken by the Australian government to boost EV uptake. From monetary incentives to tax cuts when importing cars to Australia that are low emission. Moreover, we’ll discuss the investment goals in public charging infrastructure and sales targets within a certain timeframe. 

Please note that legislation can change at any time, and you should check up-to-date information with the appropriate institution. Incentives also can change by state/territory and thus you must confirm your own eligibility based on your circumstances. These government programs are also subject to funding limitations and may be limited to a number of applicants before expiration.

Incentives

On a federal level, the government has passed an Electric Car Discount Bill which provides up to a $2000 discount. That is for every electric and plug-in hybrid vehicle bought and imported to Australia. That is additional to the Fringe Benefit Tax exemption which we will discuss more in the tax cuts section. Therefore, when you only consider the federal incentives, it is almost enough to cover the cost to import cars from Japan to Australia for example. 

Moreover, some states have added additional incentives to make the switch even more appealing. In an article by Tesla, the incentives are broken down in detail, so we’ll just summarise a few major ones. 

NSW: is offering a $3,000 rebate on the first 25,000 new electric vehicles sold valued at less than $68,750. Furthermore, when importing a new or used electric, you may be eligible for stamp duty exemption after the Australia car shipping process.  

VIC: local government is also offering a $3,000 subsidy on new zero-emission vehicles sold for less than $68,740. Since that was launched in 2021, it is eligible for the first 4000 vehicles registered and qualifying. However, there is a further incentive to be made available for the next 16,000 zero-emission vehicles sold thereafter. In addition, electric vehicles are exempt from the luxury vehicle tax once the vehicle shipping Australia is complete.

As you can see if you’re thinking about vehicle import from Japan for example, seeking electric can be highly beneficial. Nonetheless, it’s best to check the latest information with the appropriate authority before you import cars from Japan to Australia. 

Tax Cuts

Did you know that the luxury car tax threshold when importing vehicles into Australia is currently $71,849? That means that import car tax is applicable when importing vehicles to Australia over that value. For example, it’s applicable if you are moving and want to import car UK to Australia valued over the threshold.

However, when it comes to low-emission vehicles (such as EVs), that threshold is $84,916. 

There’s also an exemption in Fringe Benefit Tax (FBT) that applies to an electric vehicle under that threshold including GST. This may result in significant cost reductions for companies looking to increase their Electric Vehicle fleet. To learn more about the newly introduced bill, visit the Treasury Laws Amendment (Electric Car Discount) Bill 2022. 

Thus, the majority of federal tax incentives occur right after importing and international car shipping into Australia. If you are a trader and import cars from Japan regularly, these tax cuts can be highly beneficial. As Japan is one of the biggest EV producers in the world, the opportunity to import JDM cars that are electric can have significant financial benefits. The same opportunity can be found car shipping UK Australia as it’s another RHD market with lots of electric options. 

Public Charging Infrastructure 

The Australian government has announced a commitment of $71.9 million Future Fuels Fund, to install public EV charging stations. The grants are open to companies installing DC rapid chargers throughout the country. 

Its first round of investment started off with $24.5 million allocated to co-fund the installation of 400 fast chargers.

However, most states have decided to contribute additional funding to public charging infrastructure to expedite the uptake of EVs. For example, the Queensland Government committed $10 million to the Electric Vehicle (EV) Charging Infrastructure Scheme in 2023.

New South Wales has been leading the way with $171 million committed over the next 4 years. The scheme will help co-fund EV charging infrastructure across the state in close cooperation with private operators. The goal is to have a station available every 5km in Sydney and every 100km along major highways in NSW. 

On the other hand, North Territory has not made any commitments to additional funding for public charging infrastructure. 

It really becomes a discussion of who came first, the chicken or the egg, when discussing EVs and charging stations. While high public uptake requires widespread charging infrastructure, the same can be said vice-versa to make it financially viable. That is why government and states are stepping in to bare the initial cost of infrastructure to spark EV uptake.

Sales Targets

The federal government has pledged that 75% of its fleet will be electric by 2025. Considering that is only 2 years away, the intention is to give the used EV market a boost too. 

Some states have their own sales targets and ambitions while others don’t. Here’s a quick summary based on a CarSales article: 

• QLD: 50% EV of total new car sales by 2023, and 100% by 2036.
• NSW: 50% EV of total new car sales by 2030. 
• ACT: 100% EV of total new car sales by 2035.
• VIC: 50% EV of total new car sales by 2030.
• TAS: no target.
• SA: 100% EV of total new car sales by 2035.
• WA: no target.
• NT: no target.

If you are looking to source from the international market, Phoenix Shipping can help you source and ship to Australia. For example, car shipping NZ to Australia is one of our main routes and can make the process stress-free. This is especially true if you are moving and sourcing a company to handle content and the shipping car from NZ to Australia process. 

Conclusion

The targets are ambitious and two questions still remain. First is the question of demand and whether Australians are ready for the switch to electric on a full scale. Secondly, will production be able to meet the demand for the uptake targets that Australian government forces have set?

We’ve discussed the variety of incentives from a federal and state level. Predominantly, it is Queensland, New South Wales, and Victoria leading the way with a bigger push through additional state funding. From tax incentives right at the border which reduces your car shipping cost, to heavy investment in public charging stations. It’s also followed by ambitious goals by most states to have 50% of new car sales be EVs by 2030. 

As new car sales can often lead to a long waiting list, Phoenix Shipping offers an alternative. Japan, UK, and New Zealand are great opportunities to source second-hand EVs in good condition and at bargain prices. We can help to import car from NZ to Australia, with car shipping UK to Australia, and import from Japan.