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  • Writer's pictureThe Beagle

Incentives: Metropolitan EVs can drive in the transit lane. Regional EVs remain the poor cousins.

Great news for metropolitan EV users as transit lane concessions to continue for EVs for another 12 months. Meanwhile for regional EV users the suggested carrot is that the NSW Government is establishing "a fair and sustainable road user system, ensuring that all drivers pay for their fair share of road use".

A road user charge of 2.5 cents per km (indexed to CPI) will apply to eligible EVs from 1 July 2027 or when EVs make up 30 per cent of all new vehicle sales, whichever comes first.

Plugin hybrid EVs will be charged a fixed 80 per cent proportion of the full road user charge to reflect their vehicle type.

NSW Government say "Currently, the average petrol and diesel passenger vehicle owner pays approximately $622 a year in fuel excise. Under NSW’s new road user system, EV drivers will pay on average $315 annually".

For the average regional road user driving 20,000 km per year on pretty crappy roads the they will pay, under the proposed NSW’s new road user system, $500 per year with the added bonus of maybe driving in the Transit Lane when they go to the Big Smoke.

Treasurer and Minister for Energy Matt Kean said EVs will be permitted to drive in transit lanes until 31 October 2023. “Allowing EVs to drive in transit lanes builds on other initiatives from the NSW Government to incentivise uptake including rebates, phasing out stamp duty and building a world-class charging network to support these vehicles,” Mr Kean said.

“Through these initiatives, we have seen an 84 per cent increase in EVs in NSW since last year, the fastest growth in Australia, and we are confident this trend will continue. “This is part of the NSW Government’s EV Strategy which is backed by a $633 million investment to accelerate the uptake of EVs and de-carbonise the state-owned vehicle fleet.”

Minister for Metropolitan Roads Natalie Ward said allowing EVs to drive in transit lanes, regardless of the number of occupants, was yet another incentive for drivers to opt for vehicles of the future. “Drivers of EVs are able to use the transit lanes to cut travel times which is another great reason to take up these vehicles in addition to the more than half a billion dollars in tax cuts and incentives being invested by the NSW Government over the next four years,” Mrs Ward said. “EVs are an investment in our future, not only in the massive reduction in emissions, but also in savings on fuel and ongoing costs for drivers.”

For more information about the strategy and the NSW Government EV strategy, visit

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