South Australia axes electric car subsidy, following Victoria and NSW

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Electric-car buyers in South Australia will no longer have access to the state’s $3000 subsidy from 1 January 2024, with the scheme scrapped little more than two years since it was introduced.

South Australia has become the third local jurisdiction to repeal its subsidy for buyers of new electric and hydrogen-powered cars, announcing its $3000 rebate will end in 2024.

In the state’s mid-financial year 2023/24 budget review, Treasurer Stephen Mullighan said the subsidy would be removed by 1 January 2024, after 2500 rebates had been handed out since it was introduced on 28 October 2021.

The $3000 subsidy – which applies to electric vehicles and hydrogen-powered cars valued below $68,750 plus on-road costs – will continue to be available to motorists who place an order for an eligible vehicle before the deadline.

With approximately 4500 subsidies yet to be collected by South Australian new-car buyers, the scheme’s axing represents a saving of about $13.5 million for the state government’s budget.

South Australia will continue to provide free registration for three years to eligible electric and hydrogen vehicles until 30 June 2025, the end of the 2024/25 financial year.

In February, the South Australian government abandoned its plans to introduce a controversial road-user tax for electric cars, initially due to come into effect from July 2027, or when electric vehicles reached 30 per cent of new-car sales in the state. 

Sales of electric cars in Australia are at an all-time high, with the 80,446 battery-powered vehicles sold between January and November 2023 representing an increase of 184 per cent on the same period last year.

In 2022, 33,410 electric cars were sold across the 12 months of the year – up from the 5149 sales in 2021, although market leader Tesla did not start reporting local deliveries until March 2022.

Jordan Mulach is Canberra/Ngunnawal born, currently residing in Brisbane/Turrbal. Joining the Drive team in 2022, Jordan has previously worked for Auto Action, MotorsportM8, The Supercars Collective and TouringCarTimes, WhichCar, Wheels, Motor and Street Machine. Jordan is a self-described iRacing addict and can be found on weekends either behind the wheel of his Octavia RS or swearing at his ZH Fairlane.

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