Stamp Duty rebate in NSW & Road User Charges

[doggy1]

For those interested in the delayed EV legislation which was introduced by Matt Kean in June, here's a link to progress.

Electric Vehicles (Revenue Arrangements) Bill 2021

www.parliament.nsw.gov.au

The legislation passed the Assembly without amendments last week but has not yet been considered by the Leg. Council.

There are a pile of proposed amendments from various people. Some look reasonable and some look a little draconian (mainly in relation to the road user charge). So, it's a bit unclear what is going to happen next or when, but it seems to be fairly high on the agenda.

 

[ausevdriver]

Some (not all) of the greens amendments actually look pretty decent.

No. 2 sounds like it's basically free tolls

No. 3 is about ensuring a bit of privacy about the reporting process

 

[Sir Surfalot]

Unless I am mistaken, One Nation's proposed amendments look to bake in a significant acceleration in the rate per km of the RUC, to 4c/km in 2025-26 and to 6c/km in 2030-31. Also seems to want to limit the stamp duty rebate to only those earning under $105k/year (and I think for vehicles under $40k, but I didn't link up all the references in the proposed amendment). Ouch...

Also the second proposed amendment from the Greens looks to be proposing a higher RUC (ie higher than the indexed 2.5c/km as proposed by Matt Kean) for "luxury" EVs, that is those costing over $78k.

 

[doggy1]

Hi TedH, yes, that's how I read the amendments.

 

[atj777]

Here's the annoying thing.... now, my car will be exempt from the RUC but let's say I had to pay the $0.025/km.

My most regular drive is from Glenbrook to Kurnell and back. That's 180km. The RUC would be $4.50. However, I'm already paying around $20 in tolls for the same trip.

 

[Vostok]

Thanks @doggy1 - interesting stuff to read the detail of the proposed Act:

There’s a “pre-paid” option for the RUC. Why anyone would want to pre-pay escapes me (business deduction?) but there is no discount for doing so. Also, you get fined if you pre-pay, but then travel more than what you said you would!

The RUC will apply to all kilometres driven on public roads anywhere in Australia - hence the same “extraterritorial” application as in VIC.

Heavy vehicles that do not have an internal combustion engine do not have to pay the RUC.

The RUC is indexed annually with inflation.

The RUC is only payable on BEVs for which no stamp duty has been paid. Hence any BEV purchased in NSW prior to 1 September will not be subject to the RUC until and unless it is sold and transferred to a new owner. Or, BEVs purchased after 1 September but have dutiable value of more than $78,000 (until Duty is abolished on all BEVs).

Stamp duty exemption has been backdated to 1 September 2021.

Regarding the proposal to abolish Duty on all BEVs once they are 30% of new sales, this will take effect from the “relevant date” which is defined as:

the date prescribed by the regulations as being the date on which the Minister is reasonably satisfied sales of battery electric vehicles in New South Wales will be 30% of new vehicle sales in New South Wales.

They don’t need to explain how they measured the 30%, or over what time period, or whether it is done before or after the fact. It’s totally up the Minister to be “reasonably satisfied” 30% has been reached, or will be reached, and then name a date in a Regulation.

 

[Anubis]

10 Circumstances in which road user charges payable

1. A road user charge is payable for each kilometre for which a relevant zero or low emissions vehicle travels on a public place.
2. To avoid doubt, a road user charge is not payable for travel by a relevant zero or low emissions vehicle on private land.

Yes Premier, I did 15,000km up and down my drive way....

 

[moa999]

Think unfortunately it will be your job to prove it.

Now my current apartment spot is 6 floors below ground, so its probably 400m up and around and another 400m down most days.

A few people have reportedly tried (to know avail afaik) to ask Victoria what proof is needed of similar private driving.

(Oh and FYI the Vic legislation specifically excludes toll roads, they are very much public roads)

 

[PC__LoadLetter]

Heavy vehicles that do not have an internal combustion engine do not have to pay the RUC.

Remind me how heavy the Cybertruck is? ;-)

 

[doggy1]

Passed by the upper house with a number of amendments (Greens and some Opposition) and returned to the lower house for their re-approval.
Reading the amendments, mostly they are safeguards- cannot see anything draconian. So maybe the legislation will be through fairly soon.

 

[Hairyman]

Remind me how heavy the Cybertruck is? ;-)

Vapour is still pretty light at the moment

 

[doggy1]

Legislation has passed through parliament. That's how I read:

"

LA agrees with amendments: Wed 20 Oct 2021

Passed Parliament: Wed 20 Oct 2021"

Now to see how long for Service NSW to implement a process to recover Stamp Duty.

Regds,
Dave

 

[Vostok]

Legislation has passed through parliament.

Now to see how long for Service NSW to implement a process to recover Stamp Duty.

It needs to get Royal Assent to become law, but yeah, this is now done.

 

[BigStu]

So likely of when people will actually get money? Before Christmas?

 

[Vostok]

So likely of when people will actually get money? Before Christmas?

Who knows but you’d hope so. You could call RMS and ask but they might not have any idea either. While lockdown is over in Sydney, there’s probably a big backlog of stuff they need to get through.

 

[Vostok]

According to the article below, “a $500 million budget commitment it made to incentivise the take-up of electric vehicles will come into effect from November after new laws passed Parliament on Wednesday” and “People who have bought an EV since September will be able to apply for a refund in stamp duty. Electric vehicles will be able to use transit T2 and T3 lanes until at least October 2022.”

Sydney rail network goes green with renewable energy deal

Sydney’s train network has become the first in Australia to transition to net zero emissions after the NSW government moved to power the massive transport system with renewable energy.

www.smh.com.au

 

[BigStu]

Go here on 1 November to claim your $3,000 rebate via NSW govt portal as well as Stamp Duty rebate:

Rebates for electric vehicle purchases

www.nsw.gov.au

 

[Fazza]

Thanks @doggy1 - interesting stuff to read the detail of the proposed Act:

There’s a “pre-paid” option for the RUC. Why anyone would want to pre-pay escapes me (business deduction?) but there is no discount for doing so. Also, you get fined if you pre-pay, but then travel more than what you said you would!

The RUC will apply to all kilometres driven on public roads anywhere in Australia - hence the same “extraterritorial” application as in VIC.

Heavy vehicles that do not have an internal combustion engine do not have to pay the RUC.

The RUC is indexed annually with inflation.

The RUC is only payable on BEVs for which no stamp duty has been paid. Hence any BEV purchased in NSW prior to 1 September will not be subject to the RUC until and unless it is sold and transferred to a new owner. Or, BEVs purchased after 1 September but have dutiable value of more than $78,000 (until Duty is abolished on all BEVs).

Stamp duty exemption has been backdated to 1 September 2021.

Regarding the proposal to abolish Duty on all BEVs once they are 30% of new sales, this will take effect from the “relevant date” which is defined as:

the date prescribed by the regulations as being the date on which the Minister is reasonably satisfied sales of battery electric vehicles in New South Wales will be 30% of new vehicle sales in New South Wales.

They don’t need to explain how they measured the 30%, or over what time period, or whether it is done before or after the fact. It’s totally up the Minister to be “reasonably satisfied” 30% has been reached, or will be reached, and then name a date in a Regulation.

The RUC is only payable on BEVs for which no stamp duty has been paid. Hence any BEV purchased in NSW prior to 1 September will not be subject to the RUC until and unless it is sold and transferred to a new owner. Or, BEVs purchased after 1 September but have dutiable value of more than $78,000 (until Duty is abolished on all BEVs). - if can direct to doc stating this.. this is nice if true for all those early adapters who cuffed up stamp duty and got no incentives

 

[Vostok]

if can direct to doc stating this.. this is nice if true for all those early adapters who cuffed up stamp duty and got no incentives

It’s in Part 2 Division 1 Section 9 of the Bill:

Road user charges payable in relation to certain zero or low emissions vehicles
A road user charge is payable in relation to the following zero or low emissions vehicles—
(a) a zero or low emissions vehicle that—

(i) is registered for the first time on or after the relevant date, or​

(ii) after the relevant date, is registered in the name of a person that differs from the person in whose name the vehicle was registered before the relevant date,​

(b) a battery electric vehicle or hydrogen fuel cell electric vehicle—

(i) that is registered for the first time before the relevant date, and​

(ii) in relation to which duty was not paid under the Duties Act 1997, Chapter 9 because of the operation of section 270D of that Act.​

Part (a) means the RUC will apply to all ZLEVs registered for the first time after the “relevant date”, or which changes ownership after the “relevant date” but was registered in a different name before the “relevant date”.

Part (b) means the RUC will apply to ZLEVs registered for the first time before the “relevant date” if Duty was not paid. Schedule 3 of this Bill amends the Duties Act to make ZLEVs duty-free between 1 September 2021 and the “relevant date” if they have a dutaible value of less than $68,000. After the “relevant date”, all ZLEVs become duty-free (and therefore subject to the RUC).

Punchline: if Duty has been paid on a ZLEV, then that vehicle is not subject to the RUC.

If a person sells a ZLEV on which Duty has been paid before the “relevant date”, and the sale price is above $68k, then Duty will be payable on the sale as normal, and the vehicle will remain not subject to the RUC.

If a person sells a ZLEV on which Duty has been paid before the “relevant date” but the sale price is below $68k, then no Duty is payable on the sale, but the vehicle will then become subject to the RUC.

If a person sells a ZLEV after the “relevant date” then that vehicle will become subject to the RUC, and Duty will not be payable on the sale, regardless of the sale price.

“Relevant date” means the earlier of:

(a) 1 July 2027,​

(b) the date prescribed by the regulations as being the date on which the Minister is reasonably satisfied sales of battery electric vehicles in New South Wales will be 30% of new vehicle sales in New South Wales.​

Final note: while this Bill passed both houses on 20 October, it has not yet received Royal Assent, therefore it is not yet law (an “Act”).

 

[Fazza]

thx @Vostok for clarifying and summarising the wording ..so hopefully it comes into law and is not further negatively amended in the future and all pure EVs can start using any transit lane from Mon 1st Nov