South Australians will no longer be able claim a $3000 rebate when buying an electric vehicle in 2024.
The decision comes as the state government tries to find solutions to combat a predicted $625m debt blowout over the next few years.
In the Mid-Year Budget Review on Thursday, Treasurer Stephen Mullighan said the federal government rebate was more of an incentive for people to buy electric cars than the state government rebate offered.
“The subsidies for electric vehicles that have been offered by the states and territories have been completely and utterly subsumed by the new incentives which have been put in place by the new Albanese federal Labor government,” he said.
“Commonwealth incentives are in the order of four times the level of state government incentives in Australia.”
The federal government offers a $12,000 rebate for those who buy electric vehicles.
However, the Treasurer says those who have already placed an order on an electric vehicle or plan to do so by December 31, 2023 will still be eligible for the state rebate.
NSW and Victoria have also scrapped the $3000 electric vehicle subsidy earlier than planned.
Mr Mullighan said the subsidy was expected to end when 7000 budgeted subsidies had been allocated; however, only 2500 have been paid out to date.
The state subsidy had been available on the sale of electric cars up to the value of $68,000.
“What we are now seeing is a far greater number of electric vehicles purchased in South Australia beyond those transactions that attract the subsidy,” Mr Mullighan said.
The subsidy cut is expected to save the budget $12m over two years.
The Mid-Year Budget Review forecast that by June 30 2027, net debt will reach $38.2bn or $20,629.69 for each of the 1.85 million people currently living in South Australia.
Net debt is expected to increase from $17.7bn to $28.1bn by 2027.