The proposal includes 7 components that aim to encourage the uptake of electric vehicles (EVs), including light passenger battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell vehicles.

• Component 1 would provide a rebate to first-time buyers of electric vehicles priced below the luxury car tax (LCT) threshold for fuel efficient vehicles (an ‘eligible vehicle’).
  • Each individual would only be eligible for one rebate, with a register to be kept by the Clean Energy Regulator. Businesses would not be eligible for the rebate.
  • The rebate would be available to the first 2.5 million buyers of eligible vehicles, and the value of the rebate would decline over time according to the following schedule

  • Eligible vehicles sold	Rebate per purchase of eligible vehicles made in Australia	Rebate per purchase of eligible vehicles made outside Australia
    First 100,000 vehicles	$15,000	$10,000
    Next 200,000 vehicles	$11,250	$7,500
    Next 200,000 vehicles	$7,500	$5,000
    Next 500,000 vehicles	$4,500	$3,000
    Next 500,000 vehicles	$3,000	$2,000
    Next 1 million vehicles	$1,500	$1,000

  • The maximum rebate would be limited to 30% of the original list price for eligible vehicles manufactured in Australia.

  • The maximum rebate would be limited to 20% of the original list price for eligible vehicles not manufactured in Australia.

• Component 2 would provide loans of up to $50,000 to first-time buyers of eligible vehicles.
  • The interest rate on the loans would be set at the Reserve Bank of Australia’s (RBA) overnight cash rate, with a maximum repayment term of 10 years.
  • The first 2.5 million buyers of eligible vehicles would have access to the loan program. Each individual would only be eligible for one loan, with a register to be kept by the Clean Energy Regulator. Businesses would not be eligible for the loan.
• Component 3 would provide $2 billion in capped funding evenly distributed over two years for fast-charging infrastructure, with departmental expenses included in the cap.
• Component 4 would introduce average emissions standards of carbon dioxide on the fleet‐wide passenger vehicles sold by each manufacturer in Australia according to the following schedule.
  • 105g/km in 2025-26
  • 84g/km in 2026-27
  • 63g/km in 2027-28
  • 42g/km in 2028-29
  • 21g/km in 2029-30
  • 0g/km in 2030-31
  • The penalty for non-compliance would be $100 per excess gram of carbon dioxide per km over the set standards, multiplied by the total number of passenger vehicles sold in Australia for the given year.
  • From 1 July 2030, the sale of internal combustion engine passenger vehicles would be banned.
• Component 5 would transition Australian Government fleet procurements to 100% electric vehicles by 2025.
• Component 6 would provide $1.2 billion in capped funding evenly distributed over three years to attract new manufacturers of electric vehicles and components of the electric vehicle supply chain, with departmental expenses included in the cap.
• Component 7 would legislate the COAG Reform Fund Amendment (No Electric Vehicle Taxes) Bill 2020.
  • This bill would aim to reverse decisions by state and territory governments to tax electric vehicles.

The proposal has a start date of 1 July 2022.