Queensland’s electric vehicle subsidy scheme has been announced. Here’s what you need to know
By Sourced Externally
March 16, 2022
Queenslanders are being offered a $3,000 subsidy from the state government to buy an electric car.
With unleaded petrol prices topping $2.20 a litre, it’s hoped the cash will motivate some Queenslanders to make the switch in a bid to help the state reach its climate change goals.
However, the offer will not apply to all new electric vehicle sales. Here’s what you need to know about how the program will work.
What has been announced?
Premier Annastacia Palaszczuk has announced the Queensland Zero Emission Vehicle Strategy 2022-2032, which she said would “help drive the state’s commitment of net-zero emissions by 2050”.
As part of the announcement, the government will spend $45 million on subsidies for upfront car purchases over the next three years.
Another $10 million will be spent building more charging stations, with places like Barcaldine and Longreach coming online soon.
How will it work?
The subsidy will be available for new battery-electric cars, that cost up to $58,000.
Transport Minister Mark Bailey said the cap is lower than other states, for example NSW’s cap is $68,000, because the Queensland Government did not want to subsidise people “who can easily afford well-off vehicles”.
While the number of electric cars registered in Queensland is growing exponentially, they are still a rarity.
Mr Bailey estimated that there are 8,000 on our roads, compared to 2,862 in January last year.
The subsidy is expected to boost the uptake of new electric cars, so more second-hand ones become available in the near future.
So far, just a handful of cars on the market come within the cap, including the Hyundai Ioniq, Hyundai Kona, the Nissan Leaf, MG ZS, and BYD.
Mr Bailey said it was also hoped the subsidy will inspire manufactures to offer more models in the cheaper price bracket.
What do I need to do to get the subsidy?
The subsidy will be provided as a rebate after applications open later in the year, Mr Bailey said.
Motorists will need to apply to the Department of Main Roads and Transport to access the subsidy and those eligible have been told to keep documents relating to the purchase because they will be required for the application process.
When does it take effect?
Mr Bailey said any electric vehicle within the cap bought from March 16 onwards will be eligible for the subsidy. Applications can be made from July 1.
It will be available for three years.
Will I be financially better off driving an electric car?
Compared to the cost to refuel petrol or diesel vehicles, it was cheaper to recharge an electric vehicle, Queensland Government data showed.
The average Queensland motorist drives 13,400 kilometres annually and spends around $1,400 on petrol per year, based on figures from April last year (when petrol was cheaper).
An electric vehicle travelling the same distance would cost around $502 in electricity costs or charging could be free if home charging through solar panels (depending on weather and solar system capacity).
Electric cars also attract the lowest vehicle registration duty costs in the state.
However, it costs more upfront to buy an electric car than a conventional vehicle.
According to the Electric Vehicle Council of Australia, the running costs are about 70 per cent cheaper per kilometre.
The battery pack accounts for roughly a quarter of the total EV vehicle cost and with battery prices expected to fall, this was likely to correspond with lower EV purchase prices in the future.