The NSW Government has announced $490 million worth of new incentives, tax cuts and infrastructure for electric vehicles (EVs).

The state government says its upcoming budget will include measures to cut the upfront costs of electric vehicles for early adopters, as well as a commitment to transition all government vehicle fleet to EVs by 2030.

It also includes $171 million for new charging infrastructure across the state. However, all these benefits will be counterbalanced by a new tax on EVs. 

The NSW government says it will waive stamp duty for electric vehicles priced under $78,000, while offering an additional $3,000 rebate will be available for the first 25,000 purchases of battery and hydrogen fuel cell vehicles if they cost less than $68,750. 

The state hopes this will both lower the cost of electric vehicles and encourage car makers to bring cheaper models into the Australian market.

Much of this will be paid for by a road user fee for electric vehicles, similar to the per-kilometre tax introduced in Victoria.Reports say the NSW tax will be ‘deferred’ until 2027. 

“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,” NSW Treasurer Dominic 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 young adults saving for their first car in Western Sydney to retirees planning a road trip to Broken Hill, these incentives will make electric vehicles accessible and affordable for all NSW residents,” Mr Perrottet added.