EV charging grants and incentives
Unfortunately, many of Victoria’s electric vehicle incentives are no longer available—including the $3,000 purchase rebate, annual registration discount, and stamp duty concessions. While the road user charge has been abolished, there are currently no direct financial incentives for private EV buyers.
While these incentives are gone, attractive fringe benefit tax exemptions do remain for fully electric vehicles in a novated lease or salary packaging arrangement.
Fringe Benefit Tax (FBT) Exemption for Electric Vehicles in Australia
The Australian Government continues to offer a Fringe Benefits Tax (FBT) exemption on eligible electric vehicles (EVs) under the Electric Car Discount policy—making EVs a tax-effective option for both employers and employees.
To qualify for the FBT exemption, a vehicle must:
- Be a zero-emissions vehicle (battery electric or hydrogen fuel cell—plug-in hybrids are excluded)
- Be first held and used on or after 1 July 2022
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Have a first retail price below the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles
→ For 2023–24, the threshold is $89,332
(2024–25 values may be updated in July 2025)
This exemption applies to EVs provided through novated leases, salary packaging, or as part of company fleets, significantly reducing FBT liability. Employers benefit from lower costs, while employees gain access to EVs with reduced tax impacts and running costs.
The policy supports Australia’s transition to cleaner transport and helps make electric vehicles more affordable and accessible for everyday use.
Electric vehicles fringe benefits tax exemption
From July 2022, EV owners are exempt from paying Fringe Benefits Tax on EVs and EV related expenses, provided the EV was not a party to Luxury Car Tax.
Benefits provided under a salary packaging arrangement, such as novated leases, are included in the exemption. Electricity to fuel or run these cars are also exempt from FBT whether they are paid for in advance or through reimbursements. Installation of home chargers may not be exempt unless it can be claimed under the “otherwise tax deductible rule.”
For more information, visit the ATO website.
Victorian EV discounts
Victorian EV owners are eligible for a $100 discount on their registration costs per year.
EVs are also subject to flat-rate stamp duty, irrespective of their status as a luxury vehicle. For example, an EV sold at $100,000 may carry savings of up to $1,000 on stamp duty.
For more information, visit Victoria’s Zero Emissions Vehicles hub.
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