Queensland introduces Australia’s biggest electric-car subsidy

The Queensland Government has announced it will double its existing rebate for electric-car buyers from $3000 to $6000, while the maximum price threshold for an eligible vehicle’ has increased by $10,000 to $68,000.

Since July 2022, eligible motorists in Queensland have been able to access up to $3000 in rebates towards the purchase of new electric and hydrogen-powered cars, provided the vehicles have a dutiable value (price before on-road costs) of less than $58,000.

Earlier this week, the Queensland Government announced its electric-car subsidy has been doubled to $6000, while the maximum dutiable value of an electric or hydrogen car also increased to $68,000 plus on-road costs.

The increased subsidy expands the number of zero-emissions cars which are eligible for the rebate from eight to 20 (see below for a full list) – which now includes the Tesla Model 3, Australia’s best-selling electric vehicle.

While the subsidy is only available to eligible households with a combined annual gross income of $180,000, the state government confirmed those who have already applied for the $3000 rebate are able to be reassessed to increase the kickback to $6000.

In a media statement, the Queensland Government said the new requirements, and an updated application form for the rebate, will be available online from 1 July 2023.

New-car buyers who make their purchase before the end of the financial year are encouraged to record proof of purchase to access the rebate when it becomes available.

Queensland’s updated electric-car subsidy is now the largest financial rebate offered by any Australian jurisdiction, surpassing the $3500 incentive introduced by the Western Australian Government in May 2022.

The Royal Automobile Club of Queensland (RACQ) says it supports the state government’s increased subsidy.

“RACQ has made it very clear that we don’t want any Queenslander left behind as the world transitions to more sustainable modes of transport and part of that means making electric cars more affordable,” spokesman Joshua Cooney said in a media statement.

“It’s great to see the state government double the new EV (electric vehicle) rebate to $6000. This decision will make electric cars more affordable and give motorists more choice when purchasing their next car.

“It’s evident Australians and Queenslanders are hungry for sustainable cars and we need to be doing as much as possible to make EVs more affordable and convenient. 

“The quicker we can increase the number of cleaner vehicles on the new-car market, the faster they will become available on the second-hand market, and that’s where we will see the real improvement on affordability and uptake.” 

The Queensland Government has previously announced a target of 50 per cent of new-car sales to comprise zero-emission vehicles by 2030, increasing to 100 per cent by 2036.

A full list of electric cars which are eligible for the Queensland Government’s new subsidy is included below. 

Note: Above prices exclude on-road costs.