Australia’s Clean Car Rebate – Do You Qualify in 2025?

Introduction to Australia’s Clean Car Rebate

In 2025, Australia’s clean car market is booming – and much of that growth is thanks to evolving federal and state-level incentives. At the heart of these is the Clean Car Rebate, a program designed to make electric and low-emission vehicles more accessible and affordable for Aussie drivers.

If you’re in the market for a new car and wondering if you could save thousands just by choosing a greener vehicle, this deep-dive guide will answer all your questions.

2. Why Incentives Matter in 2025

As Australia moves toward its national emissions goals, transport emissions remain a major hurdle. To combat this, both the federal and state governments have rolled out rebates, tax breaks, and perks to encourage cleaner vehicle uptake.

The Clean Car Rebate, in particular, has made a noticeable impact on:

• EV sales growth
• Charging infrastructure expansion
• Public awareness of low-emission alternatives

It’s no longer just about being green — it’s also about saving green.

3. What Is the Clean Car Rebate Scheme?

The Clean Car Rebate is a financial incentive provided to individuals or businesses purchasing new electric or plug-in hybrid vehicles that meet certain emissions and price criteria. It’s designed to reduce the upfront cost barrier, making EVs and hybrids more competitive with petrol or diesel counterparts.

Rebates can come in several forms:

• Direct cash rebates or grants
• Stamp duty exemptions
• Registration fee waivers
• Tax benefits (for business use or novated leases)

4. Who Qualifies for the Rebate?

Eligibility depends on several factors:

✅ Australian residency or business registration
✅ Vehicle meets criteria (price, type, emissions)
✅ New (not used) vehicle in most cases
✅ Purchase within the rebate window (dates vary by state)
✅ Application submitted through the correct process

In most states, only one rebate per person applies — so if you've claimed once, you may not be eligible again.

5. Vehicle Eligibility – What Cars Are Included?

Each state has slightly different vehicle eligibility criteria, but typically the vehicle must:

• Be fully electric (battery EV) or a plug-in hybrid (PHEV)
• Be brand new (some states allow near-new or demo models)
• Fall under a price cap, e.g., $68,000 or $75,000 (varies)
• Meet emissions standards, e.g., CO2 < 120g/km

Popular rebate-eligible models in 2025 include:

• Tesla Model 3 and Model Y
• BYD Seal, Dolphin, and Atto 3
• MG4 Electric & ZS EV
• Hyundai Kona EV & IONIQ 5
• Kia EV6
• Polestar 2
• Cupra Born
• Nissan Leaf
• Toyota RAV4 Hybrid (limited eligibility in some states)

6. EVs vs Hybrids – Incentive Differences

Not all green cars are treated equally. The Clean Car Rebate typically applies to:

PHEVs are often a grey area. While they emit less than petrol cars, some jurisdictions have stricter emissions thresholds or limit rebates.

7. Rebate Amounts in 2025 – What You Could Receive

Rebate amounts vary by state:

• NSW: Up to $3,000 rebate (ended in early 2024, under review for 2025)
• Victoria: Rebate scrapped in 2023, but other EV incentives remain
• Queensland: Up to $6,000 rebate for eligible households
• SA: $3,000 rebate + 3 years rego waiver
• WA: $3,500 rebate for EVs under $70,000
• ACT: No direct rebate but offers interest-free loans and stamp duty exemptions
• NT & TAS: Smaller incentives, mostly stamp duty concessions

So yes — in some cases, buyers can receive $6,000+ in savings just by going electric.

8. State-by-State Breakdown

Here’s a quick look at each state’s clean car support as of 2025:

New South Wales (NSW)

• EV rebate ended in 2024.
• Retains stamp duty exemption on EVs.
• Possible reintroduction depending on 2025 state budget.

Victoria

• EV rebate discontinued in 2023.
• Offers $100 annual registration discount.
• Charging network expansion programs active.

Queensland

• Offers $6,000 rebate for vehicles under $68,000.
• Income-tested for households under $180,000.
• Strong incentives make it one of the best states for EV buyers.

South Australia

• $3,000 rebate + 3 years free registration.
• Vehicle price cap: $68,750.
• Limited to 7,000 vehicles.

Western Australia

• $3,500 rebate for vehicles under $70,000.
• EV charging grants for homes and businesses.

Australian Capital Territory (ACT)

• No upfront rebate, but:
  • Stamp duty waiver
  • 2 years free rego
  • Interest-free loans up to $15,000

Tasmania & Northern Territory

• Focus on tax/rego discounts, not rebates.
• EV adoption still growing slowly.

9. How to Apply for the Clean Car Rebate

Step-by-step process (varies by state):

1. Purchase eligible vehicle (must meet price/emissions rules)
2. Gather required documents (tax invoice, VIN, ID, proof of residence)
3. Apply online via state government rebate portal
4. Wait for approval & payment (can take 2–8 weeks)

💡 Some dealerships will even handle the application process for you.

10. Additional Incentives – Charging Stations & Fringe Benefits

Aside from direct rebates, buyers can take advantage of:

• Free or discounted home EV charger installation
• Public charging rebates or subsidies
• FBT exemptions for EVs under $89,332 (2025 cap) – a huge perk for novated lease buyers
• Cheaper green loans from banks and lenders

If you're buying for work or via a novated lease, the FBT exemption could save thousands each year.

11. Buying New vs Used – Impact on Rebates

Most clean car rebates apply only to new vehicles, but there are a few exceptions:

• ACT allows stamp duty exemptions for used EVs
• NSW once offered some used EV rebates (now ended)
• Victoria and QLD require new vehicle purchases

If you’re buying used, be sure to check the fine print — rebates may not apply, but rego and tax savings still might.

12. Dealership vs Private Purchase – What Matters

In most states, only dealership purchases qualify for rebates. This ensures:

• Verified new vehicle status
• Proper paperwork for the rebate
• Eligibility for bonus perks (rego waivers, etc.)

Private or grey imports? You’re likely out of luck for direct rebates — though some fringe benefits or tax offsets may still apply.

13. What Happens If You Sell Early?

Many states require you to keep the vehicle for a set period, usually:

• 6–12 months minimum
• If sold early, you may have to repay the rebate in part or full

Always check terms before flipping your EV.

14. Greenwashing & Scams – What to Avoid

With rebates come dodgy operators. Be cautious of:

🚩 Used vehicles advertised as “rebate eligible”
🚩 Dealers inflating prices to absorb the rebate
🚩 Non-compliant grey imports
🚩 Fake EV grants or online applications asking for upfront fees

Only use official government portals for your rebate.

15. How to Maximise Your EV Incentives

✅ Stack your benefits – Combine rebates, tax breaks, and free rego
✅ Lease smart – Use novated lease options to gain FBT exemption
✅ Choose your state wisely – QLD currently offers the best rebates
✅ Install a charger with state subsidy
✅ Shop at authorised dealers for clean eligibility

16. Common Questions (FAQs)

Q: Can I get a rebate on a used EV?
A: In most states, no — but some like ACT offer stamp duty waivers for used EVs.

Q: Are hybrids eligible?
A: Plug-in hybrids sometimes are. Regular hybrids (like a Corolla Hybrid) generally aren’t.

Q: Is the rebate paid upfront?
A: No, you pay the car's price and claim the rebate after purchase.

Q: How long does the rebate take?
A: Usually between 2 to 8 weeks after application.

Q: Can I still get a rebate if the program ends next year?
A: Only if you purchase while the rebate window is still open and funds are available.

17. Final Thoughts – Is It Worth Chasing the Rebate?

Absolutely — Australia’s Clean Car Rebate in 2025 could be the key to unlocking thousands in savings while driving a vehicle that’s cleaner, quieter, and cheaper to run. However, navigating the eligibility rules across different states can be tricky. Before buying, research your local laws, pick a qualifying vehicle, and submit your application early.

If you're EV-curious, now might just be the perfect time to go green — and get paid for it.