Drivers who buy zero-emissions vehicles will receive free registration for two years from Monday, as part of a $5.1 million ACT government scheme to encourage more people to switch their cars to more efficient alternatives.
Chief Minister Andrew Barr said reducing the number of high-emitting vehicles on the territory's road was a significant part of achieving ambitious reductions targets.
"Reducing transport emissions in the ACT is an essential step to achieving a sustainable, resilient future for our territory and to reach our goal of net zero emissions by 2045," Mr Barr, who is also the Climate Action Minister, said.
New or used zero-emissions vehicles, which are powered by electricity or hydrogen, bought on or after May 24 will be eligible for the scheme, which runs until June 30, 2024.
Energy and Emissions Reduction Minister Shane Rattenbury said the ACT already had the most generous incentives to encourage zero-emissions vehicle take up.
"Our community understands the need for practical and meaningful action to address climate change. We want to enable and support community action to reduce emissions, and making zero emissions vehicles more available and affordable is one of the ways we can do that," Mr Rattenbury said.
The ACT government will also offer interest-free loans to people seeking to buy electric or other zero-emissions cars.
"The ACT is fast approaching 1000 registered electric vehicles and further incentives such as the two-year registration waiver and no-interest loans through the sustainable household scheme will make purchasing zero emissions vehicles a viable option for Canberrans," Mr Barr said.
"We are also working closely with industry to make zero emissions vehicles more affordable and available and planning more charging stations across the territory in the future to ensure the ACT will continue to be leaders in the transition to zero emissions transport."
Budget papers show the ACT government to forfeit $4.45 million in lost revenue under the scheme over four financial years.
The budget also included a $2.6 million commitment over four years that will go towards installing 50 publicly accessible charging stations for electric vehicles.
Federal Liberal backbencher Katie Allen, the member for Higgins, praised the ACT's electric vehicles policies in March, putting her at odds with the Morrison's government's approach. Dr Allen said the federal government should scrap the luxury car tax on electric vehicles.
The government's so-called Future Fuels Strategy, released for consultation in February, ruled out subsidising the cost of electric vehicles, arguing it wasn't a cost-effective way to cut carbon emissions.
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