Electric vehicle fleets incentive FAQs

Yes, it is possible to apply for the kick-start funding option and the competitive bid option simultaneously. However, applicants cannot request an incentive for the same vehicle (i.e., same plate number) under both funding options and a vehicle can only be incentivised once.

Yes, if you have previously received funding for fewer than 10 vehicles, you can apply for the kick-start funding option for the remaining vehicles up to a maximum of 10.

No. Each application for the kick-start funding option must be completed (vehicles registered, smart chargers purchased and incentive payment received) before another application can be started.

Kick-start funding:

In order to access kick-start funding, you must have a fleet of at least 3 vehicles registered in NSW to support your organisation or own at least one licensed taxi in NSW.

Competitive bid funding:

If you have a fleet of at least 21 vehicles, you are eligible for the competitive bid option. 

Customers that receive funding via successful aggregators do not need to have a minimum number of vehicles in their fleets. There is no maximum size for participants in the individual stream or customers of aggregators. 

You are not eligible to apply as an individual for either funding option, but you could approach an eligible Fleet Management Organisation in order to receive an incentive and procure BEVs on your behalf under the aggregator stream of the competitive bid funding model. 

You are eligible if you have a fleet of at least 3 vehicles used for rideshare purposes or own at least one registered taxi. You are not eligible if you are a rideshare driver that operates only one vehicle. However, you can benefit from the EV fleets incentive by obtaining a BEV from an aggregator that does participate in the program. 

Each eligible organisation will be required to provide their own Australian Business Number (ABN).

The online application system will accept only one bid per registered ABN, per bidding stream. This means that if an organisation has multiple sites, but only one ABN, it will need to collate all the vehicles requested across the various sites in one bid (competitive bid option) or application (kick-start funding option). 

Kick-start funding:

You can apply multiple times for up to a total of 10 vehicles across all applications. One application must be completed (vehicles registered, chargers purchased and payment received) before another application can be started.

Competitive bid option:

You can participate in as many rounds as you wish.  

FCEVs are no longer eligible for funding through the EV fleets incentive. 

Occasional trips in other states are acceptable as long as the incentivised vehicles are registered and used predominantly in NSW. 

The incentivised vehicle can be used to exclusively support operations or to support a

combination of operational and personal use. However, only vehicles that are registered against an organisation with verified ABN, or a registered taxi driver can be incentivised. 

ShapeNo, NSW Government fleet vehicles are not eligible under the incentive. The electrification of the NSW Government fleet vehicles is managed through a separate initiative. More details are available on the NSW Government fleet electrification strategy webpage.  

No. The aggregator stream is only available to organisations that offer leasing arrangements to their customers. Aggregators must demonstrate that they have experience in leasing vehicles to customers. 

These businesses can apply through either the kick-start funding option (up to 10 EVs) or the individual stream of the competitive bid option (11 or more vehicles) if they meet the relevant eligibility criteria.

If an aggregator converts less than 75% of the guaranteed number of vehicles declared, the Department may decide to exclude the aggregator from future rounds. 

Kick-start funding:

Funding is awarded for a particular number of vehicles across one or more categories: (a) passenger and Sports Utility Vehicles (SUVs), (b) Light Commercial Vehicles (LCVs) up to 4.5 tonnes Gross Vehicle Mass (e.g., utes and vans), and (c) Light trucks up to 4.5 tonnes. Successful participants can choose any BEV model within these categories, so long as they satisfy the number of vehicles allocated to each category in their application. For example, a participant cannot apply for an LCV incentive and then purchase a passenger BEV instead.

Competitive bid option:

If a model approved in a successful bid is unable to be purchased for legitimate reasons,

participants can choose an alternative EV model. The Department expects the new proposed model to have a similar or higher price than the EV outlined in the bid. The value of the

incentive will not change. Cases where the new model leads to a negative TCO gap will not be accepted. Please refer to the Terms and Conditions in the guidelines for more details.

Changes to the incentivised BEVs must be communicated to the Department in writing and justified with appropriate reasons. The Department may also request evidence to support the proposed change (e.g., a communication from a dealer, Original Equipment Manufacturer, or customer). 

No. Aggregators are not eligible to apply for kick-start funding. They can apply for an incentive through the competitive bid funding option, aggregator stream.

Applicants are not eligible to receive kick-start funding for vehicles procured through a subscription. Only vehicles procured through outright purchase or lease are eligible for kick-start funding. Applicants looking to procure vehicles through a subscription should do so through a subscription provider.

Subscription providers can participate in either the kick-start funding option (up to 10 vehicles) or the individual stream of the competitive bid option (11 or more vehicles) to receive funding for subscription vehicles provided to customers.

No. Neither incentivised EVs or existing fleet vehicles can be privately registered (General Private usage, as noted on the registration certificate).

Vehicles under a financial or operating lease agreement of at least three years can be accounted towards the minimum requirement to have at least three vehicles to apply for kick-start funding.

No. Vehicles you don’t own but have procured through a subscription or rental agreement are not counted towards your existing fleet size.

We are supporting businesses to transition their fleet vehicles to electric by temporarily increasing the financial support available through acceleration funding. This will help to fast track action and address cost barriers. Acceleration funding particularly targets light commercial vehicles (vans and utes), trucks (up to 4.5 tonnes GVM), as well as their associated charging infrastructure. Acceleration funding is available until the funds are exhausted or until 10 June 2025.

The incentives for passenger vehicles, SUVs and vans below 2.5 tonnes GVM with an recommended retail price (RRP) of up to $40,000 are not being increased. This is because the available electric vehicles models on the market in these segments and price range are already competitively priced and do not require further support.  

The Department publishes the kick-start funding allocation and the funding available under each round of the competitive bid option on the website.  

Kick-start funding:

You can apply for up to 10 vehicles across all applications. One application must be completed (vehicles registered and payment received) before another application can be started.

Competitive bid option:

You can bid for a minimum of 11 vehicles, with no maximum. 

You can bid under both streams if:

• you provide fleet leasing services to customers (aggregator stream), and  
• you operate a fleet of at least 21 vehicles for your business purposes (individual stream). 

The incentive has been designed with a focus on passenger and light commercial BEV uptake to help improve the BEV market and spur second-hand demand.  

Heavy vehicle electrification is being considered as part of future EV strategies. 

A price cap has been introduced to limit the use of the incentive to buy luxury passenger vehicles and SUVs not required for business purposes.  

There is no price cap on eligible electric LCVs (up to 4.5 tonnes) as these might exceed the price cap due to their larger size and specific operational features (as opposed to luxury features).

The Department will review requests to exceed the price cap and may provide an exemption based on the justification provided. As an example, this could be applicable for luxury chauffeur businesses. 

Kick-start funding option:

You can purchase any model and variant within the vehicle categories (PV, SUV or SUV) that you have received funding for (noting that passenger vehicles and SUVs can’t exceed the price cap without an exemption being granted).

Competitive bid option:

You can bid for any models and variants available in the online bidding platform in the competitive bid option. 

The Department deems HEVs and PHEVs as consolidated technologies not requiring further support. Also, in order to achieve the achievement of the net zero emission target by 2050, NSW Government prioritises technologies like BEV that do not produce tailpipe emissions. 

Yes, you can replace hybrids, plug-ins and internal combustion vehicles with BEVs. 

A smart charger is a networked BEV charging device that shares a data connection with the vehicle being charged and a charging operator. This data is hosted by a cloud-based application that helps monitor, manage and restrict the use of charging devices to manage energy consumption. Smart chargers can adjust the rate of charging based on the time of day. By adopting smart chargers, fleet managers can better manage their charging requirements, achieve cost savings and reduce the impact that electric vehicles have on the electricity grid. Smart chargers can feature both single and dual charging ports. Those eligible for receiving an incentive payment under the EV fleets incentive must be on the approved list  

Smart chargers also include eligible Charging-as-a-Service (CaaS) arrangements (see definition below). 

No. The incentive will cover some of the cost of purchasing smart charging equipment, but not installation. Installation costs vary depending on your specific site and charging needs. Eligible smart chargers do not need to be installed before receiving the incentive payment, but proof of purchase of the smart charger must be provided. 

Yes. Every smart charging port that a charging station offers is eligible for a fixed incentive amount. For example, smart charging equipment that features dual charging ports, can claim up to two fixed incentive amounts. Each smart charging port must be matched to an incentivised BEV to claim the fixed incentive amount. 

No. The Tesla Wall Connector is not currently eligible for the incentive payment as it does not satisfy the Open Charge Point Protocol (OCPP) requirements of the NSW Government approved BEV charger list. 

A subscription-based model allowing fleet operators to pay a regular fee in exchange for access to BEV charging equipment, located at the incentivised EV(s) garaging location, and owned/managed by an unrelated third party. Upfront charger installation costs or external network connection costs may be additional. The service can deliver turnkey BEV charging stations, including management software, 24/7 driver support and professional field maintenance. A CaaS arrangement may also be referred to as a rental of charger offering. Only smart chargers from the approved list canbe used for CaaS solutions. The CaaS arrangements do not include a fuel or charge card to access a public charging network. 

Each smart charging port, allocated in a given CaaS arrangement must be matched to an incentivised BEV to claim the fixed incentive amount. 

The agreed charging services must have a market value exceeding the value of the charging incentive provided for each incentivised EV. The services can only apply to chargers located at the incentivised EV(s) main garaging location. Please refer to the full information described in the funding deed requirements. 

You must provide a signed copy of the CaaS agreement, or a signed copy of the vehicle agreement (e.g., leasing or subscription) containing information about the CaaS arrangement. 

Yes. Applicants can seek approval for DC chargers not included in the AC charger approved list by submitting their request in writing to the Department.

No. Only new EVs registered in NSW for the first time are eligible. Dealer demonstration vehicles are often priced at a discount, and therefore an additional incentive is not deemed necessary. 

TCO involves calculating the total costs of owning and operating a vehicle over the time it is used by an organisation (typically five years), including upfront purchase price or leasing cost, fuel/electricity, tyres and servicing. TCO calculations can help you make informed, long-term decisions about purchasing vehicles.

Whilst BEVs often have a higher purchase price than equivalent ICE vehicles, they often have much lower maintenance and fuel (i.e., electricity) costs over their lifetime. Because of this, only comparing the upfront price of a BEV and ICE vehicle may not necessarily give you the least-cost, long-term solution, particularly for vehicles that travel relatively large distances.

Examining the TCO for two vehicles provides a more objective, longer-term comparison. 

Co-funding is a key principle supported by the NSW Government in the provision of incentives to promote new technologies, such as BEVs. We expect successful applicants to also make a financial contribution towards bridging the gap in funding new technology investment.

Noting this, an applicant in the competitive bid option can apply for an incentive covering the full TCO gap if the TCO gap is less than $3,000. 

The 5-year TCO term is based on an average ownership term for fleet vehicles, but shorter terms can be nominated when selecting a vehicle in the bidding platform. If a successful applicant owns or leases a vehicle beyond 5-year TCO term cap, this will not affect the amount of funding received or the fixed TCO term. This reflects the fact that individual fleet managers have different business models, and some fleets retain vehicles for shorter lengths of time. 

The incentive is aimed at providing funding when there is a net cost (positive TCO gap) when procuring a BEV compared to an ICE vehicle. If the calculation produces a negative TCO gap, this suggests that choosing a BEV will result in a net saving over its operating life compared to an ICE vehicle, and no additional incentive is required to support the financial case. 

The Department is aware of this scenario for some vehicle models and has incorporated it into the maintenance costs in the bidding platform. 

The Australian Taxation Office currently provides a Fringe Benefits Tax exemption for eligible BEVs provided by employers to employees. These vehicles are not eligible for the EV fleets incentive as they are provided either under a novated lease, or are fleet vehicles used primarily for personal use. Only vehicles used exclusively or primarily for supporting business operations are eligible for the incentive.  

No. Fleet managers can only change the requested level of incentive, delete a vehicle, or include a new vehicle. The TCO and assumptions behind it cannot be altered at this stage in the process. 

Fleet managers can increase, decrease or leave unchanged the requested level of incentive in the final bidding window. Changing the incentive requested may change your ranking relative to other bids. 

This is to allow for healthy competition between bids, and to ensure fleet managers only bid for a level of incentive required to make the procurement of BEVs viable for them. The ceiling price set for the current round is determined based on current BEV market conditions (e.g., prices and average TCO) and the bids received in the current round. 

No. The emissions abatement of your bid is calculated based on the parameters specified by your nominated vehicles, and not additional measures such as carbon offsets or the use of renewable energy for on-site charging. This is to allow for a more level playing field when calculating emissions abatement across all bids received. 

No. The incentive does not define what should happen to a vehicle replaced by an incentivised EV. Vehicles should be scrapped, re-sold or replaced in line with your individual organisational policy. 

Payments will be made only for vehicles that have been registered in NSW.

If a fleet manager does not purchase and register the vehicles that are bid for or purchases a BEV but does not register it in NSW, payment for the vehicles not purchased or registered will be withheld, and funds will be reallocated to future bidding rounds.

If an aggregator participant procures and registers less than 75% of the number of vehicles in their funding deed, the Department may decide – at its discretion – to exclude the participant from future applications. 

Participants that are no longer interested or able to use the funding are required to notify the Department in writing as soon as possible, so funding can be reallocated to future rounds. 

Participants cannot claim an incentive for vehicles purchased before the launch date of the relevant round. 

Yes. You can procure BEVs via your usual procurement channels.

Successful applicants will receive the incentive specified in their bid, meaning different applicants may receive different levels of incentive for the same or similar model of EV.

This is because different organisations may need different levels of financial incentive in order to help transition their vehicle fleet to electric, based on factors such as the typical annual mileage of their fleet vehicles and the organisation’s ability to negotiate vehicle pricing with dealers or OEMs. 

Fleet managers that cannot secure vehicle(s) within the set timeframes will need to notify the Department. Extensions to set terms may be granted at the Department's discretion if there is a reasonable cause for delay and adequate evidence is provided. 

No, the incentive can only be used for the procurement of new vehicles. It cannot be used for procurements from the secondary market. 

Yes. An alternate payment plan involving milestone payments will be considered if the incentive payment for all vehicles cannot be claimed at once due to vehicle supply issues or participant cashflow constraints.  

This only applies to bids with more than 30 vehicles and where each milestone payment, at a minimum, includes 30 vehicles that have been registered in NSW. Bids of 30 or fewer vehicles require all vehicles to be registered before the total incentive payment is made. 

Yes. You are free to sell the vehicles when you choose. Please note the requirement to provide information on plans to resell the vehicles as part of the annual reporting specified in Schedule B of the funding deed. Additionally, you must keep sale records for a minimum of 7 years as per clause 18.2 of the funding deed. 

Yes. You are free to sell the smart chargers when you choose. You must keep sale records for a minimum of 7 years as per clause 18.2 of the funding deed. 

You are not required to return the incentive payment for written-off vehicles to the NSW Government. In addition, the comprehensive motor vehicle insurance required for each vehicle that receives funding will minimise or remove any financial loss you occur as a result the write-offs. 

We have legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information.

If collecting your personal information, we will provide you with a privacy statement at the time of collection that details how this information will be managed in accordance with privacy law.

We may publish aggregate information of round results on the NSW Government website as well as use deidentified bid data in training materials, case studies, evaluations and other portfolio purposes. 

Information of a confidential nature provided as part of or in connection with any bid, will be treated as commercial-in-confidence information and only disclosed with the consent of the participating organisation. However, commercial-in-confidence information provided by fleet managers may be disclosed:

• to the Minister/the Minister's Office
• to department staff
• to relevant parties for auditing purposes
• where authorised or required by law to be disclosed.

Please contact [email protected] if you have further questions about the incentive.

Subscribe to our e-newsletter to receive the latest information about BEV incentives at our EV fleets page. 

An online information session will be held at the opening of each round. Session details will be posted here. A recording of the session will be made available online for the duration of the round.

Sign up to our e-newsletter to be one of the first to know about future sessions at the bottom of the page linked above. 

Please email [email protected] for assistance.

Yes. Feedback can be provided on how final submitted bids compared to the highest ranked bid as well as the average incentive requested per tonne of CO2 equivalent abated ($/tC02e).

Feedback can also be provided if an application was not successful because it did not meet the eligibility criteria and/or was not supported by sufficient documentation.

The Department may not be able to provide feedback if it would involve disclosing confidential information provided by other applicants or could result in an unfair advantage with a future application.