The EV change in Australia is no more coming; it’s already here. More charging stations are being built all across the country, EV prices are going down, and people are making deeper pledges to sustainability. All of these things are making 2025 a big year for adoption. But for a lot of Australians, the choice to go electric is often based on how much it costs.  

That’s where the Australia EV incentive 2025 come in. Government discounts, exceptions. and concessions can lower the cost of your purchase or ongoing expenditures by thousands of dollars. But these incentives vary all the time and are different in each state, so it’s crucial to know exactly what’s available.  

This detailed guide covers both the federal benefits and the state-by-state rebates, so you’ll know exactly how much you could save. 

Federal Focus: The 2025 Electric Car FBT Exemption 

The federal government’s Fringe Benefits Tax (FBT) exemption is one of the biggest ongoing drivers of EV affordability across the country. 

What is the FBT exemption? 

Normally, if an employer provides a car for private use, the company must pay FBT. But with the exemption, eligible electric cars are FBT-free—resulting in thousands in savings. 

Who benefits most? 

• Employees who access an EV via a novated lease pay less tax on their salary and enjoy lower running costs. 

• Businesses can provide electric company cars without the added cost of FBT. 

This arrangement has been a key reason many Australians are driving EVs today, especially those using salary packaging. 

Eligibility for Battery Electric Vehicles (BEVs) 

• First held and used on or after 1 July 2022. 

• Vehicle value must be below the Luxury Car Tax (LCT) threshold for fuel-efficient cars—$91,387 for the 2024/25 financial year. 

• Both new and used BEVs are eligible if they meet the above conditions. 

Critical Update: PHEV FBT Exemption Ends April 1, 2025 

A major change is coming: from 1 April 2025, Plug-in Hybrid Electric Vehicles (PHEVs) will no longer qualify for the exemption. 

• If you already have a binding financial agreement before this date, you can continue under the old rules. 

•  If you make any modifications to the agreement of lease after this date, such           refinancing, the exemption will probably no longer apply.  

This is a big change in policy that exclusively supports fully electric automobiles.  

For additional information, go to  hybrid Car exemption resource site. 

State-by-State Guide: 2025 EV Incentives and Rebates 

Australia’s states and territories take different approaches to EV support. Some provide generous rebates, while others have wound down consumer programs in favour of infrastructure or fleet transitions. 

Below is a summary table, followed by a deeper look at each region. 

State/Territory	Incentives 2025	Key Eligibility / Notes	Status (2025)
ACT	Stamp Duty Exemption, 2 yrs Free Rego, $15k Loan	ZEVs (new/used), verify rego & loan	Active
NSW	Fleet Incentives Only	Consumer rebates ended Dec 2023	Fleet Active
NT	Up to $1.5k Stamp Duty Concession, Rego Waiver	BEV/PHEV <$50k, until June 2027	Active
QLD	$6,000 Rebate	New ZEV <$68k, income <$180k	Active
SA	3 Years Free Registration, $3k Rebate (verify)	New BEVs/FCEVs <$68.75k	Active
TAS	$2,000 Rebate	Eligibility & status must be checked	Active
VIC	Limited / None	Major $3k rebate ended 2023	Ended
WA	$3,500 Rebate	New ZEV <$70k, ends May 10, 2025 or 10k claims	Active (limited)

Australian Capital Territory (ACT) EV Incentives 2025 

The ACT continues to lead with a strong mix of financial benefits. 

• Stamp duty exemption applies to all new and used Zero Emission Vehicles (ZEVs). 

• New EVs may receive up to 2 years of free registration—check current terms. 

• Through the Sustainable Household Scheme, households can access interest-free loans up to $15,000 for EVs and chargers. 

This makes the ACT one of the most affordable states for early Electric vehicle adopters. 

New South Wales (NSW) EV Incentives 2025 

NSW used to give out big discounts and tax exceptions, but those stopped on December 31, 2023.  

• The state is now putting a lot of money into the fleet changes, with extra help until June 2025.  

• The goal is to speed up widespread use, not provide consumers rewards. 

Northern Territory (NT) EV Incentives 2025 

The NT has taken a long-term approach with benefits available until June 2027. 

• Stamp duty breaks of up to 1,500 dollars for Battery Electric Vehicles as well as that cost less than $50,000.  

• Possible exemptions of the registration fee lower ongoing expenditures.  

These incentives are reliable and predictable, even though they are worth less money than those in QLD or WA. 

Queensland (QLD) EV Incentives 2025 

Queensland stands out with one of the biggest rebates in Australia. 

• $6,000 rebate for new ZEVs worth under $68,000. 

• Available only to households earning under $180,000 annually. 

This means eligible buyers can combine the federal FBT exemption with the QLD rebate to make EVs significantly cheaper than petrol equivalents. 

South Australia (SA) EV Incentives 2025 

SA’s package includes both upfront and running cost relief. 

• 3 years free registration for BEVs and FCEVs valued up to $68,750. 

• A $3,000 rebate was previously available; check if additional rounds are active in 2025. 

Tasmania (TAS) EV Incentives 2025 

Tasmania offers modest but helpful support. 

• A $2,000 rebate may be available for new EV purchases (eligibility needs confirming). 

• Drivers should also look for other ways to save on license plates or stamp duty. 

Victoria (VIC) EV Incentives 2025 

Victoria’s major programs have now ended. 

• The $3,000 rebate finished in mid-2023. 

• Some small concessions may still exist, but VIC is no longer a leader in purchase incentives. 

Western Australia (WA) EV Incentives 2025 

WA currently provides a strong rebate, but time is running out. 

• $3,500 rebate on new ZEVs under $70,000. 

• Limited to 10,000 vehicles or until May 10, 2025—whichever comes first. 

This creates urgency for buyers considering an EV in WA. 

Don’t Miss Out: Key Things to Check 

Thinking about the 2025 Electric Vehicle Allowance in Australia? Here’s what really matters:  

• Vehicle Price Caps: Some Allowances stop at high price limits for cars, such as Queensland $68,000 and Western Australia’s $70,000. 

• Eligibility: Not every plan’s the same — in the ACT, you might get help for a used car, or only for a shiny new one. 

• How to Apply: To get a rebate, you usually have to apply after you buy anything and show proof of income, registration, and invoices.  

• Stacking Benefits: You can often mix and match — combine the federal FBT exemption with state rebates or rego discounts to cut your EV costs even further. 

Estimated Savings Example: How Much Can You Really Save in 2025? 

Let’s examine an example to help us understand these incentives better.  

In 2025, you want to buy a new electric car in Australia for $65,000.  

• State Rebate ( Queensland ) : $6,000 off (the car costs less than $68,000 and the household income is less than $180,000).  

• Federal Federal Business Tax Exception: If you buy the car through a new lease, you could save $7,000 to $9,000 over 5 years, depending on your tax rate.  

• Running Cost Savings: EVs can be much lighter on your wallet — they often cost 40% to 60% less to run than petrol cars, saving you around $1,500 to $2,000 every year on fuel and repairs. 

In 5 years, the total savings may be more than $20,000, making an Electric vehicle far more appealing than having a gas-powered car.  

In West Australia, a similar calculation with the $3,500 rebate and federal benefits might save between $15,000 and $18,000 over the same time period. 

Driving into 2025: Next Steps for EV Buyers 

Australia’s EV incentives in 2025 come in all shapes and sizes. NSW and Victoria have wound back their support, but Queensland, WA, ACT, NT, and SA are still offering solid savings. On top of that, federal incentives remain strong — especially if you go for a novated lease on a Battery Electric Vehicle. 

If you’re thinking of getting an Electric vehicle:  

1. Look into both state and federal rebates that apply to your area.  

2. Use government websites to check your eligibility and the dates for applications.  

3. Include savings in your EV budget; it might save you thousands of dollars on the price.  

You stand a better chance of getting rebates before they run out if you act quickly. 

FAQs: Australia EV Incentives 2025 

1. Are electric cars cheaper to buy in 2025 because of rebates? 
Yes. Depending on the state, buyers can save between $2,000 and $6,000 upfront, plus registration and tax savings. 

2. Can I claim both federal and state EV incentives? 
Usually, yes. For example, Queensland residents with a novated lease can combine the federal FBT exemption and state rebates. 

3. Do plug-in hybrids (PHEVs) still qualify for benefits? 
Federally, PHEVs lose eligibility for the FBT exemption from April 1, 2025. Some states may still support them, but benefits are phasing out. 

4. Are used electric cars eligible for rebates? 
Yes in some cases—like the ACT’s stamp duty exemption. However, most states limit rebates to new EV purchases only. 

5. Which state has the best EV incentives in 2025? 
Queensland currently offers the largest rebate ($6,000), while WA’s $3,500 program remains strong but limited by time and vehicle numbers.