Is there a federal rebate for buying an EV in Australia?

No. There is no federal cash rebate, grant, or direct payment for purchasing an electric vehicle in Australia. The main federal benefit is the FBT exemption, which only applies through salary packaging/novated leases — not to private cash purchases. Some state governments have offered EV rebates, but these are not federal programs.

Does the FBT exemption apply if I buy an EV with cash?

No. The FBT exemption only applies when an EV is provided as a fringe benefit through an employer — typically via a novated lease. If you buy an EV outright with personal funds, FBT does not apply in the first place, so the exemption is irrelevant. The tax benefit only exists within salary packaging arrangements.

Do EVs get cheaper import duty in Australia?

Not specifically. The standard customs duty for passenger vehicles is 5%, but most popular EVs enter at 0% under Free Trade Agreements (Korea, Thailand, China, Japan, US). This is not an EV-specific concession — it applies to all vehicles from those countries equally.

Is there still an EV road user charge in any state?

No. Victoria's distance-based EV charge (2.5 cents/km for BEVs) was struck down by the High Court in October 2023 as unconstitutional. The ruling prevents any state from imposing a similar charge. No federal EV road user charge has been legislated.

How does the NVES help EV buyers?

The New Vehicle Efficiency Standard (commenced 1 January 2025) sets CO2 emission targets that manufacturers must meet across their fleet. This creates financial pressure to sell more EVs in Australia, which is expected to increase model availability and keep EV pricing competitive. It is an indirect benefit — there is no direct payment to buyers.

Federal EV Incentives Australia 2026

Q: Is the Small Business Energy Incentive (20% bonus deduction) available?

No. The Small Business Energy Incentive was announced in the 2023-24 Budget but the enabling legislation never passed Parliament. It does not exist as law. Many websites incorrectly list it as an active incentive. Do not claim it on a tax return.

There is a lot of misinformation online about federal EV incentives in Australia. This guide separates what actually exists from what was announced but never legislated, what is state-level not federal, and what is commonly misattributed.

Every incentive listed here is verified against the enabling legislation and current ATO guidance. If something is not listed here, it either does not exist at the federal level or has not been legislated.

Summary: what actually exists at the federal level

Incentive	Type	Who benefits	Status
FBT exemption for BEVs	Tax exemption	Employees with salary packaging	Active — under review, no changes yet
LCT fuel-efficient threshold	Higher tax-free threshold	Buyers of EVs priced $76,950–$91,387	Active
CEFC Household Energy Upgrades Fund	Concessional loans	Homeowners (EV chargers, solar, batteries)	Active
New Vehicle Efficiency Standard (NVES)	Regulation on manufacturers	Indirect — more EVs, competitive pricing	Active from 1 Jan 2025
ARENA EV charging infrastructure	Infrastructure grants	Charging providers, not consumers	Active
Instant asset write-off	Business tax deduction	Small businesses (limited EV relevance)	Active but low threshold

What does NOT exist federally:

No cash rebate for EV purchases
No Small Business Energy Incentive (never legislated)
No EV-specific import duty concession
No federal road user charge for EVs
No STCs (Small-scale Technology Certificates) for EV chargers

FBT exemption — the big one

The Treasury Laws Amendment (Electric Car Discount) Act 2022 exempts eligible electric vehicles from fringe benefits tax when provided through a salary packaging arrangement. This is by far the most valuable federal incentive.

How it works: Without the exemption, an employer providing a car as a fringe benefit pays FBT of 47% on 20% of the vehicle’s value each year. On a $55,000 EV, that is $5,170/year in FBT. The exemption sets this to zero for eligible vehicles.

Eligibility:

Battery electric vehicle (BEV) or hydrogen fuel cell vehicle (FCEV)
Drive-away price below the LCT fuel-efficient threshold ($91,387 for FY 2025-26)
First held and used on or after 1 July 2022
PHEVs excluded from new arrangements since 1 April 2025

What it’s worth: For a $55,000 EV on a 3-year novated lease, an employee earning $80,000–$135,000 saves roughly $12,000–$15,000 in total (FBT saving + income tax saving on pre-tax lease payments). At higher incomes, savings reach $15,000–$25,000.

The review: In December 2025, the government announced a review of the exemption. Revised terms are expected by mid-2027. The exemption remains fully in force until any changes are legislated. Vehicles already under a novated lease are expected to be protected under standard grandfathering practice.

No sunset date. The legislation contains no expiry clause.

For the full breakdown, see our EV FBT exemption guide. For cost modelling, use our novated lease calculator. For the practical guide to setting up a novated lease, see our complete novated lease EV guide.

Luxury Car Tax — the threshold advantage

The Luxury Car Tax (LCT) is charged at 33% on the amount by which a vehicle’s GST-inclusive value exceeds the relevant threshold. There are two thresholds:

Category	FY 2025-26 threshold
Fuel-efficient vehicles (includes all BEVs)	$91,387
Other vehicles (most ICE cars)	$76,950

All battery electric vehicles qualify as “fuel-efficient” (0 L/100km, well below the 7 L/100km cutoff). This means an EV can cost up to $91,387 before attracting any LCT, compared to $76,950 for a standard ICE vehicle — a $14,437 headroom advantage.

Practical effect: Most mainstream EVs (Tesla Model 3, Model Y RWD, BYD range, MG4, Hyundai Ioniq 5, Kia EV6) sit below $91,387 and attract zero LCT. Premium EVs above the threshold (Tesla Model S/X, BMW iX, Mercedes EQS, Porsche Taycan) still attract LCT on the amount above $91,387.

The thresholds are indexed annually to CPI.

CEFC Household Energy Upgrades Fund

The Clean Energy Finance Corporation administers a $1 billion fund providing concessional (below-market-rate) loans through participating banks for home energy upgrades.

What it covers: EV charger installation, solar panels, batteries, heat pumps, insulation, and other energy efficiency upgrades.

What it is NOT: It is not a rebate or grant. It is access to a cheaper loan. No cash payment is involved.

How to access it: Apply through a CEFC-partnered lender. The loan covers the full cost of the upgrade at a discounted interest rate.

Best for: Individual homeowners who want to finance an EV charger installation at below-market interest rates.

For apartment-specific funding options including the CEFC fund, see our apartment EV charger grants guide.

New Vehicle Efficiency Standard (NVES)

The NVES commenced 1 January 2025 under the New Vehicle Efficiency Standard Act 2024. It is Australia’s first vehicle efficiency standard — the country was the last OECD member without one.

How it works

The NVES sets fleet-average CO2 emission targets that vehicle manufacturers must meet across all new cars they sell in Australia. It does not regulate individual vehicles — it requires each manufacturer’s average to hit the target.

CO2 targets (passenger vehicles):

Year	Target (g CO2/km)
2025	~141
2026	~131
2027	~121
2028	~111
2029	~101
2030	~99

For context, Australia’s new-car fleet average in 2023 was approximately 155–160 g/km — roughly where the EU was in 2015. The NVES is a catch-up mechanism.

How it benefits EV buyers (indirectly)

The NVES does not give you money. It creates market pressure that flows through to pricing:

More EV models available in Australia. Manufacturers need zero-emission vehicles to pull their fleet average down, incentivising them to bring models to Australia sooner.
Competitive EV pricing. Manufacturers may discount EVs to boost unit sales and earn compliance credits.
Higher ICE prices. Compliance costs for high-emission vehicles (large SUVs, utes) may be passed to buyers, widening the relative price advantage of EVs.

The credit system

EVs count as 0 g/km, earning manufacturers credits they can bank (up to 5 years) or trade to other manufacturers
Supercredits in 2025–2026: each BEV counts as approximately 2 vehicles, dramatically pulling down fleet averages
Penalties for exceeding targets: ~$100 per tonne of CO2 equivalent excess emissions
Credits are tradeable — EV-heavy brands (Tesla, BYD) can sell surplus credits to ICE-heavy brands

ARENA EV charging infrastructure

ARENA’s Driving the Nation Fund ($500 million) supports EV charging and hydrogen refuelling infrastructure. ARENA funds are directed to:

Highway fast charging networks
Regional and remote charging infrastructure
Multi-dwelling residential charging projects
Smart charging and vehicle-to-grid trials

This is infrastructure funding, not consumer grants. Individual homeowners cannot apply to ARENA for an EV charger. The benefit to consumers is indirect — more public charging infrastructure, lower installation costs for apartment buildings, and co-funded commercial charging that drives network expansion.

Charging providers and body corporates can apply during open funding rounds at arena.gov.au.

Import duty — not an EV advantage

The standard customs duty on imported passenger vehicles is 5%. There is no EV-specific concession.

However, most popular EVs enter Australia at 0% duty under Free Trade Agreements:

FTA	Key EV brands	Duty rate
China-Australia (ChAFTA)	BYD, MG/SAIC, NIO, Xpeng	0%
Korea-Australia (KAFTA)	Hyundai, Kia, Genesis	0%
Thailand-Australia (TAFTA)	GWM Ora, some BYD/MG (Thai-built)	0%
Japan-Australia (JAEPA)	Nissan, Toyota, Mazda, Subaru	0%
US-Australia (AUSFTA)	Tesla (US-built), Rivian, Lucid	0%

European-made EVs (BMW, Polestar, Volvo, some Mercedes) still attract the 5% duty — there is no EU-Australia FTA in force.

This is not an EV policy — it is trade policy. The same duty rates apply to ICE vehicles from the same countries.

Instant asset write-off — limited EV relevance

Small businesses (aggregated turnover under $10 million) can instantly deduct the cost of eligible assets under the threshold. The threshold has been $20,000 in recent years (check whether it was extended beyond 30 June 2025 — it has required annual re-legislation).

For EVs, the car cost limit applies. Regardless of the instant asset write-off threshold, the maximum depreciable cost for any car is capped at the car cost limit (~$69,674 for FY 2024-25, indexed annually). This means a $55,000 business EV can be fully depreciated, but a $100,000 one is capped.

Most EVs cost well above $20,000, so the instant asset write-off threshold is largely irrelevant. Business EVs are typically depreciated over 8 years (ATO effective life) using diminishing value (25% p.a.) or prime cost (12.5% p.a.) methods.

The bigger business benefit is the FBT exemption — a company providing an EV to an employee (including a working director) pays zero FBT on eligible vehicles.

What does NOT exist — the myths

The Small Business Energy Incentive (20% bonus deduction)

This is the single biggest piece of EV incentive misinformation in Australia.

It does not exist. The 20% bonus tax deduction for energy-efficient assets was announced in the 2023-24 Federal Budget but the enabling legislation never passed Parliament. The bill lapsed. It was never enacted.

Despite this, as of 2026, numerous websites, accounting blogs, and even some government-adjacent pages still list it as an active incentive. The ATO never issued guidance for claiming it because there is no law to claim under.

Do not claim it on a tax return. It is not a deduction. It was a Budget announcement that did not become law.

A federal cash rebate for buying an EV

Does not exist. There is no Commonwealth cash payment, grant, or rebate for purchasing an electric vehicle. Some states have offered EV rebates (NSW and Victoria had time-limited programs that have since closed), but these are state programs, not federal.

STCs (Small-scale Technology Certificates) for EV chargers

STCs are created under the Small-scale Renewable Energy Scheme for solar panels, solar water heaters, and heat pump water heaters. EV chargers are not eligible. Neither are home batteries. If you install solar panels and an EV charger at the same time, the STCs apply to the solar only.

An EV-specific import duty concession

There is no reduced duty rate for electric vehicles. The 0% duty many EVs enjoy comes from Free Trade Agreements based on country of manufacture, not vehicle type. ICE vehicles from the same countries get the same 0%.

EV road user charges — the High Court killed them

Victoria introduced a distance-based charge for zero and low emission vehicles on 1 July 2021 — 2.5 cents/km for BEVs, 2.0 cents/km for PHEVs.

In October 2023, the High Court of Australia struck it down in Vanderstock v Victoria. The Court ruled 4-3 that the charge was an excise duty — a tax on goods that only the Commonwealth can impose under Section 90 of the Constitution.

The ruling means:

No state or territory can impose a distance-based EV charge
South Australia’s similar charge was also effectively invalidated
Any future road user charge for EVs must come from the federal government
As of April 2026, no federal EV road user charge has been legislated

There is ongoing federal policy discussion about a broad-based, technology-neutral road user charge for all vehicles as fuel excise revenue declines. But nothing is legislated.

Bottom line: No EV-specific road user charge applies anywhere in Australia.

How to stack federal incentives with state programs

The federal FBT exemption stacks with state-level benefits. The most valuable combinations:

State	What stacks with the FBT exemption
QLD	Stamp duty exemption on EVs under $58,000
ACT	Zero stamp duty on new BEVs + Sustainable Household Scheme loans
NSW	Stamp duty concessions (check current thresholds)
VIC	No current state rebate, but no EV road user charge either
SA	Stamp duty concessions for BEVs
WA, TAS, NT	Limited state benefits — FBT exemption is the main saving

For state-by-state details, see our state EV rebate pages.

The bottom line

The federal EV incentive landscape in Australia is narrower than many websites suggest. The FBT exemption is genuinely valuable — $12,000–$25,000 over a 3-year novated lease depending on your income. The LCT threshold advantage and CEFC concessional loans add further value. The NVES is pushing manufacturers to supply more EVs at competitive prices.

But there is no federal cash rebate, no 20% bonus deduction, and no EV-specific import duty concession. State programs add meaningful benefits in some jurisdictions but vary widely.

The most effective path for most Australian EV buyers earning above $45,000 with employer salary packaging is: novated lease an eligible BEV under $91,387, bundle a home charger into the lease, and claim any applicable state stamp duty concessions on top.

For the full novated lease guide, see novated lease on an EV in Australia. For state-by-state EV rebates, see our state rebate pages.

Federal EV Incentives Australia 2026: What's Real, What's Not