The Queensland Government has announced a $55 million package to encourage the uptake of clean energy transport.

The package includes $45 million for $3000 incentives for electric vehicle (EV) purchases and $10 million for charging infrastructure.

Premier Annastacia Palaszczuk made the announcement while releasing the new EV strategy Queensland Zero Emission Vehicle Strategy 2022-2032 which is designed to help drive the state’s commitment to reach net-zero by 2050.

“We are going to make the cost of buying electric cars just that little bit cheaper,” the Premier said.

“My government will provide a $3,000 subsidy for anyone buying an electric vehicle to the value of $58,000.”

Transport and Main Roads Minister Mark Bailey said this is an important step towards making Queensland a global leader in the world’s low-emissions future and becoming a renewable energy superpower.

“We were the first Australian state to develop an EV strategy, and now we are once again leading the way with Queensland’s Zero Emission Vehicle Strategy 2022-2032,” he said.

“This will see Queenslanders get money back for switching to electric vehicles, and the Palaszczuk Government build more charging infrastructure across the Sunshine State.

“We revolutionised electric vehicle travel through the Queensland Electric Super Highway, which is currently being expanded to almost 3800km, and now Queenslanders will have even more charging stations to use.

“Not only does this encourage people to buy electric vehicles, it gives the automotive industry confidence to set up shop in Queensland.

“This strategy signals a fundamental shift in our transport system.”

The $3000 subsidy is available for 15,000 new vehicles and the price cap of $58,000 means eligible vehicles will include the Hyundai Ioniq and some Kona models, Nissan’s Leaf, MG’s ZS Essence, the Mini Cooper SE and the BYD Atto 3. The big-selling Tesla Model 3, which now starts at $63,900, will not be eligible. Plug-in Hybrid electric vehicles are not eligible for the subsidy.

According to the Queensland Government, the average Queenslander drives 13,400km annually and spends approximately $1,900 on fuel each year (at $1.90 per litre). A zero-emission vehicle travelling the same distance would cost around $502 annually in electricity costs, or charging could be free if home charging through solar panels (depending on weather and solar system capacity).

Victoria, NSW, South Australia, the ACT, and the Northern Territory, have all either introduced financial incentives for EV buyers, or are about to, though South Australia, Victoria, and NSW have also introduced (or will introduce when EV sales have reached a certain point) road-user charges for EV owners – something that the Queensland Government has, so far, refused to consider.

The EV subsidy, which was announced prior to the federal budget when petrol prices had risen to more than $2 per litre, was met with support from across automotive industry groups, including MTA Queensland.

“The government should be applauded for this initiative to bring Queensland in line with other States,” said Rod Camm, CEO of MTA Queensland. “It is obviously very important to get the price down on EVs to make them more affordable for consumers, and there’s no point even considering a road-user tax until you’ve got a lot of EVs on the road.

“With the price of petrol over $2 per litre, it is also the perfect time to make this announcement as the hurt is real for many Queenslanders.”

Source: Motor Trader e-Magazine (April 2022) 

14 April 2022