The NSW Government will scrap stamp duty on all electric cars under $78,000 in a radical move to boost the uptake of greener vehicles.
Almost $500 million will be spent in tomorrow’s State Budget to incentivise the purchase and running of electric vehicles, including waiving stamp duty and offering $3000 rebates to 25,000 motorists.
Stamp duty will start being waived for owners from September this year and plans are being made for users of electric vehicles to pay road use charges on a per-kilometre basis.
Currently, stamp duty is calculated at $3 per 100 or part thereof of a vehicle’s value. It currently does not matter how the vehicle is powered.
For passenger vehicles valued at more than $45,000 with seating for up to 9 occupants, the rate of stamp duty is $1,350 plus $5 per $100.
Stamp duty is typically paid when a resident transfers the vehicle into their name.
For instance, if this reporter bought a rusted-out project 4WD for $5000, I would have to pay $150 ($3 for every $100) when transferring the registration.
NSW Treasurer Dominic Perrottet said the package was aimed at reducing the barriers to electric vehicle ownership while also taxing road users fairly.
“Our comprehensive strategy is about making sure we have the right mix in place to incentivise the take-up of electric vehicles while ensuring everyone who drives on our roads contributes to funding and maintaining them,” Mr Perrottet said.
“Our strategy also commences long-term major tax reform. Today we begin the process of permanently phasing out stamp duty on electric vehicles and a deferred transition to a fair and sustainable per-kilometre road user charge for electric vehicles.
“From September this year, we will waive stamp duty for eligible EVs under $78,000 and $3,000 rebates will be up for grabs for the first 25,000 purchasers of battery and hydrogen fuel cell electric vehicles under $68,750.”
Transport Minister Andrew Constance said the benefits of running an electric vehicle are numerous.
“Electric vehicles are not only cheaper to run and quieter on our roads, but they also reduce both carbon emissions and air pollution which results in dramatically improved health outcomes for our communities,” Mr Constance said.
“As the world’s right-hand drive market moves to manufacturing electric vehicles, we have to make sure we have the policies in place to give industry the green light to increase model availability and cut entry price points.”