Shifting to zero emission vehicles

Zero emission vehicles deliver a wide range of environmental, economic and social benefits. When compared with internal combustion engine vehicles, zero emission vehicles save users on ongoing refuelling, vehicle maintenance and registration costs. All zero emission vehicles tested in the last 5 years received a 5-star safety rating from the Australian New Car Assessment Program (ANCAP).

There are 2 types of zero emission vehicles:

• Battery electric vehicles (BEV)
  • powered by an electric motor only
  • produce no direct tailpipe greenhouse gas emissions
  • fully zero emission when powered by renewable energy
  • energy stored in a battery
  • typical driving range 300-550km
  • the battery is charged by using external chargers and regenerative braking (kinetic energy captured during braking) to charge the battery
  • see our Queensland Electric Super Highway for on the go charging options.
• Hydrogen vehicles or fuel cell electric vehicles (FCEVs)
  • emerging market technology
  • produce no direct tailpipe greenhouse gas emissions
  • refuel at hydrogen refuelling stations (similar to regular service stations)
  • fully zero emission when powered by renewable hydrogen
  • typical driving range of 300-600km.

A plug-in hybrid electric vehicle (PHEV) is not a zero emission vehicle but could be considered a suitable alternative to an internal combustion engine vehicle if used mainly on battery power.

A plug-in hybrid electric vehicle is not eligible under the Zero Emission Vehicle Rebate Scheme.

Plug-in hybrid electric vehicles:

• are partly powered by an electric motor/s (charged by a wall socket or specialised charger)
• have an internal combustion engine (petrol, diesel, or biofuel)
• the internal combustion engine is primarily used to generate electricity to charge the battery or to extend driving range for longer trips
• have a lower electric-only driving range than battery electric vehicles
• overall driving range of 500–700km, with a full electric driving range around 60km.

Zero emission vehicle costs

Vehicle registration duty savings in Queensland

Hybrid or electric vehicles attract the lowest vehicle registration duty costs—get an estimate for vehicle registration duty costs.

Battery electric vehicles attract the lowest level of registration—get a registration quote.

Zero Emission Vehicle purchase rebates in Queensland

Read about enhancements to the rebate scheme from 1 July 2023.

Zero emission vehicle running costs

The upfront cost to purchase a zero emission vehicle is currently more expensive than conventional internal combustion engine vehicles. However, zero emission vehicles have fewer moving parts that require servicing. Also the Electric Vehicle Council of Australia advises that the operating costs of zero emission vehicles are about 70% cheaper per km when compared to a conventional internal combustion engine vehicle. The battery pack accounts for roughly one-quarter of the total zero emission vehicle cost. With battery prices expected to reduce, this is likely to correspond with lower zero emission vehicle purchase prices in the future.

Compared to internal combustion engine vehicle costs, it is much cheaper to charge an electric vehicle than to refuel an internal combustion engine vehicle. The average Queenslander drives 12,100km annually and spends approximately $1,900 on fuel annually (at $1.90/L). A zero emission vehicle travelling the same distance would cost around $454 annually in electricity costs, or charging could be free if home charging through solar panels (depending on weather and solar system capacity).

The following table compares the costs of a zero emission vehicle and an internal combustion engine vehicle in Queensland.

Electric vehicle cost comparison
July 2023

Operating cost item	Zero emission vehicle	Internal combustion engine vehicle
Comparable vehicle cost	$55,000	$39,943
Vehicle registration duty	$1,137	$1,241
Upfront cost rebate (for eligible ZEVs)	$6,000	-
Registration fee (excluding compulsory third-party insurance and traffic improvement fee)	$283.50	$360.60
kWh/100km	15	-
Litres/100km	-	7.5
Electricity cost ($/kWh)	$0.25	-
Fossil fuel cost ($/L)	-	$1.90
$/100km	$3.75	$14.25
Annual fuel savings over 12,100km	$1,306.50
Vehicle registration duty and registration savings over 5 years	$488.57
Estimated total upfront and operational savings over in 5 years	$12,841.07 $9,841.07 with a $3000 rebate

Use the information in the table above as a general guide based on the following:

• Figures are based on the average cost of zero emission vehicles under $68,000 available in the Australian market and equivalent passenger 4-cylinder internal combustion engine vehicles.
• Plug-in hybrid electric vehicles and battery electric vehicles have a registration duty rate of 2% compared to 4-cylinder vehicles which have a registration duty rate of 3%.
• Battery electric vehicles attract the lowest level of registration in Queensland.
• The average distance driven annually in Australia is 12,100km (Australian Bureau of Statistics, 2020).
• Lower maintenance costs could further increase zero emission vehicle savings.
• Figures are based on electricity cost of $0.25 per kilowatt hour, and if charging from home solar, it would further decrease electric vehicle operating costs.
• Compulsory Third Party and traffic improvement fee are not included in this table analysis.
• Registration duty calculator.

For more vehicle comparisons, visit the Green Vehicle Guide.

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Environment

In 2021, Queensland's transport sector accounts for approximately 14% of the state’s total greenhouse gas emissions, making it the second highest emitting sector in the state.

Across Australia battery electric vehicles emit on average 29-41% less life-cycle emissions than a typical fossil-fuelled vehicle for every kilometre driven in Australia. The extent to which electric vehicles can lower emissions varies depending on which state or territory you live. Much depends on how much electricity is generated from renewable sources, such as solar, wind and hydro.

Battery electric vehicles produce zero exhaust emissions, therefore, emit no harmful emissions, and do not pollute the air or cause/contribute to respiratory health issues. This technology will assist in reducing air and noise pollution, leading to improved public and environmental health and urban convenience.

The energy used to charge zero emission vehicles from the grid will become greener and more sustainable as the government continues with its 50% renewable energy target by 2030, 70% by 2032 and 80% by 2035.

While Australia is highly reliant on imported liquid fossil fuels for most of its transport needs, Queensland is completely self-reliant in terms of electricity production. By using electricity, zero emission vehicles will help reduce the Queensland economy’s dependency on fossil fuels, while supporting the use of renewable and locally produced energy.

Many owners charge their zero emission vehicle(s) from a home solar system, making them carbon neutral and free or low cost. A zero emission vehicle fully charged from solar energy can save between 2.9 to 3.4 tonnes of greenhouse gas emissions annually when compared to an internal combustion engine vehicle (driving 13,400km per year).

Most energy for the Queensland Electric Super Highway, fast charging infrastructure is sourced from green energy and offsets.

Zero emission vehicle batteries

Battery electric emission vehicles are extremely efficient, converting over 77% of the electrical energy from the grid to power the vehicle. Comparatively, internal combustion engines only convert 12–30% of the energy available in petrol and diesel.

Several zero emission vehicles on the market today have enough battery range to meet the average Australian's driving needs (480-550km) for over a week. The average Australian drives 38km per day so like using internal combustion engine vehicles, there is not always a need to 'fill up' every day, and zero emission vehicles also have the benefit of being able to be charged via a power point at home or anywhere with access to electricity.

Vehicle manufacturers and private companies are continuing to research into battery recycling and re-purposing. This has led to significant success overseas, specifically in areas such as grid management demand services.

The Queensland Government is also developing a battery strategy to consider opportunities to expand battery manufacturing in Queensland.  This will extend the local supply chain for new economy minerals and the development of battery chemicals potentially creating additional economic development and employment in Queensland.