Frequently Asked Questions

In May of 2021, the Andrews Labor Government unveiled its ambitious Climate Change Strategy and interim targets, maintaining Victoria's position as a leader in tackling climate change, with the strongest targets and actions towards them of any State or Federal Government in Australia. Victoria has already cut its emissions by 24.8 per cent based on 2005 levels, achieving our 2020 emissions reduction target two years early. We remain on track to meet our 2025 target.

It is our goal and intention to reduce emissions by 28-33% by 2025, and 45-50% by 2030. This strategy keeps Victoria on track to meet our target of net zero emissions by 2050, and seizes the opportunities of climate action; advancing technology, investing in new industries and creating Victorian jobs.

Goals are nothing without action and continued innovation, which is why this Andrews Government is investing over $100 million to transform the transport sector, offering up to $3,000 for Victorians who buy zero-emissions vehicles (ZEVs) and a target that 50 per cent of all new car sales in Victoria will be ZEVs by 2030. With the knowledge that range anxiety is a massive obstacle in the uptake of ZLEVs, we are utilising charges to fund a big boost of charging stations, to encourage uptake and support those already driving these zero or low-emission vehicles.

We're investing almost $20 million to reduce emissions in agriculture and make farms more sustainable. This includes $3.9 million to fund world-leading research and trials of new feed to reduce emissions from livestock.
A further $15.3 million for the Victorian Carbon Farming Program will help farmers store more carbon in shelterbelt trees and engage in agroforestry.
Government operations, from schools and hospitals to police stations and metro trains, will also be powered with 100 per cent renewable electricity by 2025 – an Australian first.

The Climate Change Strategy follows the Andrews Government’s major investment to transition our state to a cleaner economy, powered by 40 per cent renewable electricity by 2025 and 50 per cent by 2030.

This year, we are installing Australia’s largest lithium-ion battery in Moorabool to modernise the state’s electricity grid, support new renewable energy capacity and improve power supply in the face of increasingly hot summers. We continue to deliver grants for the installation of solar panels, especially at state schools, and have a range of grant programs for community groups and businesses seeking to be environmentally responsible and proactive.

The Government has allocated more than $100 million to transform our transport sector, offering $3000 for Victorians who buy zero-emissions vehicles (ZEVs). Our target is that 50 percent of all new car sales in Victoria will be ZEVs by 2030.

We’re further encouraging the uptake of zero and low emission vehicles with discounted vehicle registration fees and stamp duty concessions, investing over $45 million in fast charging networks for motorists across major highways and tourism destinations, a state-wide trial to investigate solutions to achieve a zero-emissions bus fleet, and funding to introduce electric vehicle-ready provisions in new buildings from 2022. Research has also told us that a key hurdle to people buying electric vehicles is 'range anxiety', the concern about how far vehicles can travel without charge and a lack of charging stations, which the Government is actively working to mitigate by utilising road charges paid ZLEV owners to build more charging stations across the state.

The ZLEV charge is a road-user charge for Victorian registered Zero and Low Emission Vehicles (ZLEVs). These charges will apply to light vehicles not predominantly powered by a fuel source such as petrol, diesel or LPG – so, we’re talking hybrids and electric cars.

The road usage charge will help to service the building and maintenance of roads. It will also pay for the expansion of electric vehicle charging stations across Victoria. Research has shown that the main hurdle to people buying electric vehicles is range anxiety, and that is what the Government is trying to reduce by building more charging stations across the state.

Owners of petrol and diesel cars get taxed 4 cents/km. The average driver in Australia drives around 13,100 kms every year. This works out to be roughly a charge of $550-$600 a year in fuel excise tax, depending on how many kilometres the driver commutes.

In contrast, electric vehicle owners will only be charge 2.5 cents/km and plugin hybrid electrical vehicles will pay 2 cents/km. For the average driver who completes around 13,100 kms every year they can expect to pay a road usage charge of around $330 for electric vehicles or $260 for plug-in hybrid-electric vehicles, per year.

If you drive 20,000 kilometres a year, this becomes a saving of $300-$400 compared to petrol and diesel drivers.

Australian drivers pay a fuel excise to the Commonwealth Government when they fill their vehicle up with petrol, diesel or LPG. This money is then redistributed to the states to pay for the maintenance and expansion of roads.

Zero and Low Emission Vehicles (ZLEV) obviously use less fuel (in the case of a hybrid vehicle) or no fuel (in the case of an electric vehicle). These cars still use our roads though and we have to make sure that the cost of servicing these roads is shared by all drivers. Making Zero and Low Emission Vehicles (ZLEV) more attractive also involves substantial investment in our roads.

Research has shown that the main hurdle to people buying electric vehicles is range anxiety. The Government is working towards reducing this hurdle with over $45M of investment in charging stations across the state. The road usage charge will help us to continue to pay for the maintenance of our roads whilst building the infrastructure to make ZLEV vehicles more attractive for buyers.

Our target for 2030 is to see that 50% of all new car sales in Victoria are ZLEVs. That will only happen if ZLEV drivers have confidence that the charging infrastructure has been built to support their car.

The distance-based charge is 40-50% less than what owners of internal combustion engine vehicles pay towards the servicing of the roads. Owners of petrol and diesel cars will pay on average, $600 a year in fuel excise tax. In contrast, EV owners driving the same distance would only pay $330 per year in road usage charges and plug-in hybrid-electric vehicle owners would only pay $260 per year.

ZLEV owners subject to distance-based charges will continue to receive a $100 discount on their annual Victorian registration.

The Victorian Government is also offering $3,000 to Victorians who purchase zero-emission vehicles.

Conventional hybrid vehicles will no longer be eligible for a $100 registration discount, but will also not be charged this distance-based charge, due to their vehicle’s predominant use of petrol or diesel.

Working towards a future where the majority of road vehicles are zero or low emission vehicles is a complex, but worthwhile task. The Victorian Government is supporting this transition and believes the road usage charge is fair to all drivers. Owners of internal combustion engine cars cannot be the only people contributing to the cost of road maintenance and upgrades. It will take low-income earners longer to shift to electric cars, as there are limited supplies of affordable and/or second-hand EVs. These lower-income earners cannot be the only people paying for the maintenance and upgrades of our roads – everyone needs to contribute.

This Government takes the climate crisis seriously, and we have many initiatives to make zero emission travel more affordable and accessible. That is why we’re thinking ahead – more people will buy ZLEVs if the road and charging infrastructure exists to support their choice.

A $330 road usage charge for electric vehicles will help to build the necessary infrastructure and is not a disincentive when the charge is 40-50% less than the fuel excise tax paid on internal combustion engines.

ZLEV will also continue to receive a $100 registration discount and $3000 grant when you buy a new ZLEV.

Neither do we. Unfortunately, the State Government only has a limited ability to impact the cost associated with Electric Vehicles. The Australian Government, on the other hand, could be making EVs cheaper to purchase , levelling the playing field when it comes to the accessibility of these vehicles. While the UK Government and other governments around the world are doing this, ours isn’t.

There are no new electric cars available in Australia for less than $40,000, and only five for less than $60,000. In comparison, there are more than two dozen electric cars available in the UK for less than AU$60,000, including eight that cost less than Australia’s cheapest electric car.

Federal Labor have announced that they will introduce an Electric Car Discount – to make electric cars cheaper so that more families who want them can afford them and help us reduce emissions. Read more about that here.

The Andrews Government is investing $1.6 billion in our energy system – the largest investment of any State Government, ever. This includes $540 million to develop all of Victoria’s six Renewable Energy Zones, and building the largest lithium-ion battery in the Southern Hemisphere, just outside of Geelong, to help support the state’s transition to renewable energy and drive down electricity prices.

As we transition away from fossil fuel cars, we have to consider not only the incentives for buying ZLEV cars but also the source of the electricity that will power them. More electric cars powered by fossil fuel generated electricity will not reduce emissions.

That is why the Victorian Government is providing incentives to purchase ZLEVs whilst simultaneously investing in renewable energy, batteries and a more efficient energy grid.

The Victorian Big Battery will deliver cleaner, cheaper, and more reliable power and help us reach our ambitious target of halving emissions by 2030. It's the biggest battery in the southern hemisphere and is operating now.

The battery was delivered thanks to the Andrews Labor Government directing the Australian Energy Market Operator to source a System Integrity Protection Scheme (SIPS) using new legislation that was passed by the Government in 2020 to bring forward critical transmission investments.

The battery reserves 80 per cent of its capacity to allow the energy market operator to increase the power flow through the Victoria-New South Wales Interconnector. This means Victoria has access to more power when it is most needed and can deal with challenges in the transmission system.

The battery will also help reduce wholesale prices – and people’s power bills – by storing cheap renewable energy and discharging it when needed. Independent analysis shows that every $1 invested in the battery will deliver $2.40 in benefits to Victorian households and businesses.

We are further cementing Victoria’s status as the clean energy capital of Australia, with a funding boost of $40 million for offshore wind projects to drive jobs and bring forward the next wave of renewable energy opportunities.

As part of the Energy Innovation Fund, the Labor Government is kickstarting three major offshore wind projects – from Star of the South, Macquarie Group and Flotation Energy – which have the potential to create up to 5,600 jobs, bring more than $18 billion in new investment to Victoria and power around 3.6 million homes.

Wild winds off Victoria’s coastline − which are among the best in Australia and the world − could see our state become an offshore wind powerhouse, driving economic development and helping us reach our target of 50 per cent renewable energy by 2030.The funding boost will support feasibility studies and pre-construction development, including environmental assessments, and adds to $96 million the companies are already investing in these projects.

The Star of the South will receive $19.5 million to support pre-construction development activities for an offshore wind farm off the Gippsland coast. If built to its full, proposed scale, it would have up to 2.2GW of capacity – enough power to provide nearly 20 per cent of Victoria’s energy needs.

Macquarie Group will receive $16.1 million to facilitate initial development stages of a 1GW offshore wind farm off the Bass Coast. Flotation Energy will receive $2.3 million for scoping studies and surveys for a 1.5GW offshore wind farm off the coast of Gippsland.

The funding will help each company conduct studies to determine the exact location of each project. All major projects will require a rigorous community consultation process and will be subject to a range of regulatory approvals including environmental impact assessments.

This funding is part of the enormous investment the Labor Government is making in renewable energy. Concrete commitments, like our $1.6 billion clean energy package announced in the Victorian Budget 2020/21, have ensured one third of all Australia’s renewable energy jobs are based in Victoria – more than any other state.

We’re supercharging Victoria’s zero emissions (ZEV) vehicle journey with:
➡ Easier access to Victoria’s $3,000 ZEV Subsidy
➡ $5 million awarded for a public fast-charging network AND
➡ $3 million in new charging grants for local council and business fleets

Today’s announcements, made under the Government’s $100 million Zero Emissions Vehicle Roadmap, will significantly ramp up Victoria’s charging infrastructure coverage, slash emissions, and in the longer term make ZEVs more affordable by growing the second-hand market.

Fast charging in Boroondara Strips will be installed at: Burwood Village Shopping Strip & Glenferrie Road Shopping Strip.