$6,000 QLD EV Rebate: You May Be Better Off Without It

Crikey! $6,000 Off EVs In QLD!

Good news for banana benders wanting to own an EV.  The Queensland Government has increased their state’s rebate for new electric vehicles from $3,000 to $6,000.  But that’s not the only good news.  Their announcement contains three juicy bursts of electric mobility goodness:

1. The EV rebate is increasing from $3,000 to $6,000 dollars.
2. If you have already received the $3,000 rebate, you can apply to get the extra $3,000.
3. The maximum cost of EVs receiving the rebate no longer includes delivery charges and has been increased from $58,000 to $68,000.

But there is a bit of sad news for rich buggers:

• While any Queensland household can receive the original $3,000 rebate for EVs, only those with a total gross household income of $180,000 or less can receive the $6,000 rebate.

That is unfortunate news for high-income earners.  But as I’ve never made more than $179,000 in my life, I have no bloody sympathy for you. 

Another bit of unfortunate news: I see no indication in either the media release or the Queensland Government page on the rebate that people who missed out on the rebate because they bought an EV between $58,000 and $68,000 can get it now.  I presume they would say so if you could, so I don’t think it’s possible.  But, if they have any sense, they’ll clarify this.  If they don’t, there’s no harm in asking.  Except for, maybe, being put on hold for two and a half hours.

The increase won’t start until July, but since you can still get it for an EV you buy now, this shouldn’t affect your purchase decision.

Bullshit Politician-Speak

The media release gives three reasons for the increase in both the rebate and the maximum cost of vehicles it applies to:

1. Making electric vehicles more affordable for hardworking Queenslanders.
2. Increasing rebate eligibility and the amount for eligible Queenslanders.
3. Opening the door for more accessibility to an even greater range of EVs.

That sounds good, but the first point is bullshit.  You don’t have to be hardworking at all.  You can be the laziest bastard north of Coolangatta, and you still have as much right to receive the rebate as someone who works 90 hours a week.  It’s like they don’t even bother to check these things before setting their media releases free.  In fact, being a lazy bastard and not having too much money coming in can be a benefit.  I’ll explain why further below. 

What the improved rebate will do is help the state meet its stated goal of all new car sales being zero emissions by 2036. 

5 Rebates A Year For Bussiness

Individuals can get one EV rebate — ever!  So if there are two adults in your household you could each get one EV and one rebate.  Businesses can get up to five rebates per financial year.  But they shouldn’t rely on the rebate being available long term.

Eligibility

For an individual to receive a rebate, they will need:

• A valid Queensland licence
• Queensland residence
• Proof of purchase

Note the rebate doesn’t come off the purchase price of an EV but is received after you buy it.

For an EV to be eligible for the rebate, it has to be:

• New — No second-hand vehicles, including dealer/demonstrator vehicles.
• A goddamn car — Motorbikes, large trucks, semis, e-bikes, and milk floats don’t count.  Vans and light commercial vehicles are okay if they’re under 4.5 tonnes.  Boats are right out.
• Zero emissions — This means the vehicle must not emit gases as part of normal operation.  So no hybrids or plug-in hybrids.  In practice, this means only full-battery electric vehicles can get the rebate.  Technically, hydrogen-powered cars could be eligible, but none are currently available under the price maximum.
• Registered/purchased after March 16th 2022.
• Not leased — This is actually a big deal because it means you can’t combine the Queensland rebate with the Federal Fringe Benefits Tax Exemption for EVs.

Better Off Without It?

The EV rebate will be useful to many Queenslanders, but it’s not as useful as it seems because there will also be many who’ll be better off without it.  This is because they can save more money by leasing to buy an EV and taking advantage of the EV Fringe Benefits Tax Exemption.  This can only be done through a business, either one you work for or one you own.  It can potentially save a person with a high income over $25,000 on the cost of a new EV.  Because this can only be done through a lease it’s not possible to double up and receive the Queensland EV rebate as well.

I’m not an accountant, so take this with a grain of salt, but if you make more than around $50,000 a year and the Fringe Benefits Tax Exemption is an option, you may be better off using that than the $6,000 Queensland EV rebate.  But there will still be plenty of people without this option who will benefit from the rebate. 

I consider the Fringe Benefits Tax Exemption unfair in that it’s only useful to people with a decent amount of money coming in, so the increased Queensland rebate somewhat redresses this. 

It May Not Last For Long

The Queensland Government has set aside $45 million for the EV rebate.  So far, 1,135 rebates have been used already.  Assuming they’ll all get the full $6,000, there’s only $38 million left.  As EV purchases are rapidly increasing, the rebate may only be around for a couple more years.  I expect many people will use the Fringe Benefits Tax Exemption instead, which may stretch out the supply, but I wouldn’t rely on it being around for too long. 

Original Source: https://www.solarquotes.com.au/blog/qld-ev-rebate-raised-to-6000/