Electric vehicles seek exemption from proposed luxury car tax in NSW

William Jolly By on February 28, 2019

The New South Wales Labor opposition has proposed a luxury car tax if elected – and the green car industry isn’t happy about it.

NSW Labor has proposed a $100,000 price threshold for a new levy on luxury new cars, increasing stamp duty in the state to one of the highest rates in the country.

The proposed tax by Opposition Leader Michael Daley would be:

  • $7 per $100 over $100,000, and;
  • $9 per $100 over $150,000

Half of the cars in the Federal Government’s Green Vehicle Guide are over this price threshold, and would therefore be subject to this tax.

Electric Vehicle Council chief executive Behyad Jafari told the Australian Financial Review he had contacted the NSW Labor Party to negotiate a potential exemption for green cars.

“In the same way you wouldn’t raise taxes on solar panels, you shouldn’t raise taxes on electric vehicles,” he said.

“Electric vehicles should be seen as a clean energy resource.”

The Federal Government’s own website says:


By choosing a greener vehicle, you can make a real difference – and save on fuel.

The Green Vehicle Guide helps you reduce your impact on the environment by providing information on the environmental performance of light vehicles sold in Australia.

NSW Greens MP Cate Faehrmann was supportive of Mr Jafari’s viewpoint, saying she supported taxing luxury cars but not at the expense of electric vehicles.

“The reality is that currently many EVs [electric vehicles] on the market are expensive as the technology is relatively new and only just being produced at mass scale,” Ms Faehrmann told the AFR.

“Instead we support the luxury car tax being waived for EVs for five years and then slowly increased as more affordable options become available.”

The plans for this new tax currently contradicts NSW Labor’s plans to adopt an electric vehicle fleet target of 25% by 2025, as well as announcing $10 million of funding to rollout more fast-charging stations for electric vehicles across the state.

How much do electric vehicles cost?

Electric vehicles on average are more expensive than petrol or diesel cars, as they are a relatively new innovation and technology required to create and maintain them is more expensive.

According to the RACQ’s Private Vehicle expenses report, electric vehicles are much costlier to run per week compared to other types of cars.

The average dollar spend required to own a green car is $340.85 per week – cheaper only than ‘large prestige vehicles’ from brands such as Lexus, Porsche and Jaguar.

By comparison, the closest non-prestige vehicle type to green cars in terms of cost is all-terrain SUV’s, which cost an average of $285.5 per week.

Green cars lying in the luxury price range include the famous Tesla Model S and X, creations of tech mogul Elon Musk.

Carsguide.com.au lists the Model X at an average price of just under $153,000.


For feedback or queries, email will.jolly@savings.com.au

Photo by Matt Henry on Unsplash

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