VIC gov to provide 20,000 subsidies for electric vehicles

Image by Charlotte Stowe

In an effort to transform Victorian roads, the Victorian government has announced it will be offering 20,000 subsidies of up to $3,000 for the purchase of new electric vehicles (EVs) under $69,000. 

The new initiative is a part of the government’s plan to have half of all new cars sold in Victoria emission-free by 2030. The first 4,000 subsidies were made available on 2 May 2021. 

“When people get an EV (electric vehicle) they are starting to save significant dollars off their bills," climate change minister, Lily D 'Ambrosio told the ABC.

"It's almost up to $1,600 that is saved off fuel and maintenance costs, each and every year, so we want to make it easier for Victorians.''

In addition to the subsidies, the VIC government also plans to spend $19 million on new charging stations and an extra $10 million on government EVs, which it hopes will amount to more than 400 EVs over the next two years.

"This is very, very ambitious but [a plan] we are absolutely committed to achieving,” said D'Ambrosio.

The race for EVs to become the norm on Victorian roads

According to figures gathered by The Driven, there are currently more than 5,800 EVs on Victorian’s roads, equating to one for every 1,150 people. 

And although the majority of Aussies are keen to make the move toward a greener future, Victoria is well on its way to holding EVs at the same standards as regular vehicles. 

In late March, Mozo reported that from July 1 Victorian EV owners will be subject to a new tax introduced by the Victorian government. Drivers with electric-only vehicles will be taxed 2.5 cents per kilometre, while hybrid vehicles will be taxed two cents per kilometre. 

It’s estimated that the total cost for EV owners will be up to $300 every year at registration time. 

According to Victorian Treasurer, Tim Pallas the decision to introduce the tax was to ensure EVs were treated equally and contributed toward building a sustainable road network. 

"We are providing confidence to new electric vehicle owners with a massive boost to our charging network, funded by the distance-based charge, which will reduce range anxiety as a key barrier to take-up," he said.

If you’d like to learn more about EVs and how they work, have a read of our comprehensive electric vehicle guide.

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