South Australia increases subsidies for electric cars, adds road user tax

South Australia has adopted the 2021 Motor Vehicle Amendment Amendment with generous subsidies alongside a road user charge for electric vehicles.


The South Australian Government has adopted amendments to it Action plan for electric vehicles in the State Legislative Council, which will both encourage and discourage the use of electric cars.

Amendments to the bill that provide a $ 3,000 subsidy for the purchase of new electric vehicles will be offset by a toll tax – a fee designed to compensate for the lack of road tolls.

While the first 7,000 buyers of electric cars in South Australia will receive a $ 3,000 rebate from the government, they will pay $ 375 for every 15,000 miles of driving instead of fuel taxes (or 2.5 cents per mile).



The changes will see the overall electric car package increase from $ 18.3 million in the financial year 2020-21 to $ 22.7 million.

  • A grant of $ 3,000 for the first 7,000 (an increase of 1,000) electric battery vehicles purchased in South Australia.
  • A 3-year exemption from registration tax for new electric cars purchased through June 30, 2025.
  • The delayed introduction of the toll for electric vehicles from 1 July 2022 to 1 July 2027, or when the sale of electric batteries reaches 30 per cent of the sales of new cars in South Australia, whichever occurs first.

The toll has been calculated at 2.5 cents per kilometer for electric cars, falling to 2 cents per kilometer for plug-in hybrids (same as other Australian states with similar schemes).

Based on the average distance traveled in Australia of 15,000 km per year, the tax on electric vehicles will amount to 375 USD per year, while plug-in hybrid cars will be subject to a tax of 300 USD.

In addition to the $ 3000 discount on electric cars, owners of electric vehicles in South Australia will receive three years of free registration, which at current rates is worth between $ 540 and $ 805 per year.

The big losers are plug-in hybrid cars that are not eligible for both electric car subsidies and free vehicle registration.



These vehicles will be slung twice – paying both the traffic tax, while also depositing the fuel tax paid at the petrol pump, while also missing out on the SA government’s incentives.

Southern Australian Treasurer Rob Lucas said, “the pace of change is overwhelming – where the future is zero emissions, the future is electric vehicles.”

On the toll, Mr Lucas said: “As the state moves towards a higher concentration of zero and low emission vehicles, it is crucial to ensure that all vehicle owners, no matter what car they drive, contribute to the maintenance of our roads. The future . “

Limitations on the changes include a price cap of $ 68,750 (including GST) on qualified electric vehicles.

Our full list of electric car policies in all states and territories in Australia can be found here.

Rob Margeit

Rob Margeit has been a car journalist for over 20 years and covers both motorsport and the car industry. Rob joined CarAdvice in 2016 after a long career at the Australian Consolidated Press. Rob covers car news and car reviews, while also writing in-depth feature articles on historically significant cars and car manufacturers. He also loves to discover obscure models and research their origins and history.

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