Victoria’s only electric-car incentive axed by State Government

The Victorian Government has announced a registration discount for electric and plug-in hybrid vehicles will end in a little over 12 months.

The scheme, which cuts $100 off the cost of annual vehicle registration, is the only financial incentive left for buyers of zero- and low-emission vehicles in Victoria – despite the State Government targeting emissions reductions of 45 to 50 per cent by 2030.

The move is expected to generate an estimated $93 million of revenue by mid-2027 – or $165 million over three years.

"[Zero- and low-emissions vehicles] pay less or no fuel excise, and this will help ensure that all road users contribute their fair share to building and maintaining Victoria’s roads," the government wrote in its mid-year budget update.

Parking costs in Melbourne will also increase from January 2026 – said to contribute to a 'congestion levy' – while the boundary for the higher parking fees will be expanded to include more suburbs.

The levy, which applies to off-street parking spaces in the Central Business District (CBD) and surrounding areas, will jump from $1750 to $3030 for category one zones, while those in category two zones will see the tax go from $1240 to $2150 annually.

The Victorian Treasurer says the changes to off-street parking will add an additional $307 million to the state's coffers.

The changes were announced alongside a new levy for property owners in Victoria – all of which is designed to pay for emergency services, including firefighters, the SES, and Triple Zero Victoria, among others.

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Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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