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$500m electric vehicle package jump-starts the road transport transition in NSW

The NSW Government’s almost $500 million package to accelerate the uptake of electric vehicles [1] is the beginning of the end of the internal combustion engine’s 120-year monopoly on road transportation in NSW. [2] 

“This is an historic and very welcome package from a government that has significantly increased its commitment to climate action over the past few years,” Nature Conservation Council Chief Executive Chris Gambian said.  

“It will not only reduce the climate impact of road transportation, it will reduce the health impact that cars have on people by improving air quality across our congested cities. 

“I commend the Premier and all the ministers who have made this possible, including Treasurer Dominic Perrottet, Transport Minister Andrew Constance, Deputy Premier and Regional NSW Minister John Barilaro, and Environment Minister Matt Kean.” 

The package includes: 

  • Cash rebates and stamp duty exemptions on purchases of new EVs;  
  • Targets for a converting the government fleet;  
  • Cash incentives for companies to install charging station across the state;  
  • Transit lane access for peak-hour EV commuters; and 
  • Postponing an EV road user charge until 2027 or when EVs make up 30% of new vehicle purchases. 

“Making the state’s vehicle fleet run on 100% clean energy is the next big challenge after transitioning the electricity grid in NSW,” Mr Gambian said. 

“We still have a long way to go to clean up the grid, but the government has shown today that it understands the urgent need to also tackle the transport sector. 

“About 22 per cent of the state’s greenhouse gas emissions are from the vehicles, so electrification of transport is a key to tackling climate change. [3] 

“The government’s electric vehicle package signals the beginning of the end of the internal combustion engine as the dominant mode of road transport in this state and the dawn of a new, clean energy era.” 

Earlier this month the Nature Conservation Council launched its campaign to convert the state’s fleet to electric vehicles. The council’s Accelerate NSW campaign includes policies to: 

  • Waive stamp duty for EV purchases
  • Reduce registration fees for EVs
  • Provide direct incentives for individuals and businesses to upgrade to EVs
  • Mandate EVs for all new government fleet purchases  
  • Set EV ambitious vehicle targets for the NSW fleet 

“We are very pleased that the government has acted on most the of priorities we have identified,” Mr Gambian said. 

[1] NSW to abolish stamp duty on electric cars in an effort to boost uptake, SMH, 20-6-21 

[2] The Motor Car in NSW, 1900-1937, Lester Hovenden, Sydney University, 1981  

[3] NSW Emissions, NSW Government, 2021    

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