States are trying different methods to drive up EV sales. 

The Australian Capital Territory (ACT) has taken the lead in electric vehicle adoption with the nation's highest sales rate. 

The ACT’s offer of zero-interest loans up to $15,000, along with stamp duty and registration discounts, has helped to increase the number of electric vehicles sold. In the first quarter of the year, almost 20 per cent of new cars sold in Canberra were electric. 

New South Wales (NSW) is in second place with 7.9 per cent, followed by Queensland at 6.9 per cent. 

Queensland is now looking to challenge the lead with the nation’s richest electric car incentive scheme. Industry experts say the growing competition will be vital to Australians adopting zero-emission transport technology. 

The revised Queensland scheme will be available on a bigger range of cars – 23 models – after raising the purchase threshold to $68,000. 

The means-tested $6,000 rebate will make electric vehicles more affordable and accessible, said Queensland's Energy Minister Mick de Brenni. 

Dr Jake Whitehead, head of policy at the Electric Vehicle Council, says the growing competition for incentives will benefit Australia’s efforts to cut pollution. 

The International Energy Agency reported electric vehicles made up 14 per cent of all new car sales worldwide in 2022 – a figure dwarfing the 3.8 per cent recorded in Australia. 

Dr Whitehead says incentives will remain important to accelerate Australia's transition to zero-emission vehicles. 

Australia's first state-based electric car incentives were launched in 2021, after modest discounts on vehicle registration and home chargers. 

The stimulus packages now range from cashback on new electric car purchases, like $3,500 in Western Australia, to stamp duty exemptions in NSW, three years’ free registration in South Australia, and zero-interest loans of up to $15,000 in the ACT. 

However, some argue that the money could be better spent on infrastructure needed to keep electric cars on the road. 

Curtin University’s distinguished professor Peter Newman argues Australians will buy electric vehicles whether they are given incentives or not, and more will invest in the technology when manufacturers produce cheaper, more accessible models. 

Newman points to BYD’s Seagull as an example of a car that could change what Australians buy. The five-door hatchback went on sale in China for the equivalent of $17,100, and attracted more than 10,000 pre-orders in 24 hours. 

Newman says more small, inexpensive, Chinese-made vehicles will come to Australia over the next two years, winning more buyers and allowing governments to invest their funds in charging stations to keep them on roads.