Federal Government Launches Electric Delivery Vehicle Incentives

New subsidy program offers up to $15,000 per vehicle for logistics operators transitioning to electric delivery fleets.

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The Federal Government has launched a new incentive program targeting the electrification of commercial delivery fleets, offering substantial subsidies for logistics operators.

Program Details

The Electric Commercial Vehicle Transition Scheme provides:

  • Up to $15,000 subsidy per eligible electric van or truck
  • Additional $5,000 for depot charging infrastructure
  • Accelerated depreciation provisions for fleet conversion
  • $200 million total program funding over three years

Eligibility Criteria

To qualify, operators must:

  • Hold an ABN with commercial vehicle registration
  • Commit to minimum 3-year vehicle retention
  • Install approved charging infrastructure
  • Provide usage data for program evaluation

Vehicle Categories

Subsidies vary by vehicle class:

Vehicle TypeMaximum Subsidy
Light commercial (under 3.5t)$10,000
Medium rigid (3.5-8t)$15,000
Heavy rigid (over 8t)$20,000

Industry Response

Major carriers have welcomed the announcement, with several indicating accelerated electrification timelines. The program particularly benefits last-mile delivery operators where electric vehicle range limitations are less constraining.

Applications open May 1, 2025, with funding allocated on a first-come basis.