Yesterday the Victorian Government announced a new Zero Emission Vehicle Subsidy program that offers $3,000 off the price of electric vehicles to help accelerate the transition to EVs. You can read a breakdown of the announcement here and here.
So imagine you’ve been wanting to buy an EV and this incentive has made the difference for you and your family and it’s time to access the scheme. How do you actually go about getting the $3,000 off the price of the vehicle?
The ZEV Subsidy is being run through the Solar Victoria website, which has successfully managed incentives for Victorians to get solar panels on their roof, solar hot water and discounts on home battery storage.
How to get $3,000 off the price of an EV.
Since the announcement, there’s been some discussion around how the incentive program would work, would it be a tax deduction, or a direction reduction off the price of the vehicle at the time of sale. Thankfully the subsidy / rebate will reduce the price of the vehicle by A$3,000 at the time of purchase.
The ZEV Subsidy will reduce the upfront cost to the customer of purchasing a ZEV through a subsidy available at the time of purchase and arranged through the car dealership.
This will support more Victorians to choose to buy an EV sooner and significantly increase the number of zero emissions vehicles (ZEVs) in Victoria over a short period.
Under the heading ‘how can I receive the subsidy’ section of the Solar VIC website, the following detail is listed.
The ZEV Subsidy will be delivered through car dealerships and will be applied at the point of sale. The dealer will claim the subsidy on your behalf when you purchase an eligible ZEV. The Victorian Government is working with car companies to put these arrangements in place. It will be deducted from the price and will be verified and payable when the vehicle is registered at a Victorian address.
Customers do not need to apply separately for the rebate.
Purchasers of EVs from the day of launch on 2 May 2021 (today), to when payments are available in July will be contacted directly to arrange payment.
Customers are advised to retain their Car Registration Certificate and Contract of Sale.
The design of this program is really well done, there’s no waiting for tax time to claim back the money, instead you simply go and buy the vehicle as you normally would and the price tag will be $3,00 less. It makes the whole process incredibly easy for the customer and places the emphasis on the business claiming the subsidy from the Government on the back end.
Are businesses eligible?
A new piece of information this morning clarifies that Victorian businesses will be able to access the subsidy and can apply for up to two subsidies at this stage. Individuals can only apply for a single subsidy.
What limits are there on the Subsidy?
- The subsidy will be available for purchases of ZEVs under $68,740 in the first stage of the program. This refers to the GST inclusive price. It excludes stamp duty, compulsory third party insurance, registration and other charges.
- The value of a car, for the purpose of the threshold, will be the sale price before deduction of the rebate, and includes the value of any parts, accessories or attachments supplied, or imported, at the same time as the car.
- The vehicle must be a car. Motorcycles and other vehicles are not included in the subsidy.
- Technically Fuel Cell or Hydrogen-based vehicles are also eligible, but the availability and price of these vehicles mean they are unlikely to account for many of the 20,000 slots.
- You will not be able to receive the subsidy for a Plug-in Hybrid Vehicle.
- The subsidy is also not available for second-hand EVs.
- There is no means-testing on the subsidy.
- The car must be purchased from a Victorian dealer where they can register the new car in Victoria. This means you can’t buy from a NSW dealer and register the ZEV in Victoria to get the subsidy.
- The funding in the package will be subject to demand and run until the subsidies are exhausted but will conclude on 30 June 2024 if all subsidies are not claimed.
Benefits to Zero Emission Vehicles.
ZEVs do not use petroleum fuels, and therefore do not emit greenhouse gas emissions from the tailpipe. Battery Electric Vehicles and Hydrogen Fuel Cell Electric Vehicles (FCEVs) are examples of these technologies.
Battery electric vehicles are powered by a rechargeable in-built battery, which is charged by an external power source. The vehicles have no exhaust emissions and if charged from a renewable electricity source like solar, the carbon footprint is reduced even further.
In addition to lowering emissions, ZEVs can help improve air quality, leading to better health outcomes and offer other social and economic benefits. Zero emission vehicles also have the potential to provide services to our electricity grid including storage of electricity and stability.
ZEVs are less expensive to run with reduced maintenance, as they have fewer moving parts that require regular servicing or that might need to be replaced, with savings estimated to be $300 per year.
Battery electric vehicles have significantly lower ‘re-fuelling’ costs per kilometre with savings on fuel estimated to be upwards of $1300 per year.
Battery electric vehicles can be charged through mains electricity, using grid or solar energy. Victoria already has a network of charging stations in public spaces including key tourist and community destinations across the State. There are shopping centres and newer apartment buildings with stations. The ZEV Roadmap has set out $19 million to upgrade charging infrastructure across Victoria to meet the demand.
You can search for EV charging stations at www.plugshare.com
More information at Solar Victoria.