ACT to ban sale of new petrol/diesel cars from 2035

Petrol bowser at service station (ACT)

The Australian Capital Territory (ACT) will become the first Australian state or territory to phase out petrol and diesel-powered vehicles with the government announcing it will ban the sale of new petrol and diesel-fuelled vehicles from 2035.

Launching its Zero Emissions Vehicle Strategy, the ACT Government will set updated EV sales targets for the territory along with a phase out of the purchase of new fossil fuel-powered internal combustion engine (ICE) vehicles from 2035.

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The ACT Zero Emissions Vehicles Strategy 2022-2030 is expected be released in full today, and will address affordability, infrastructure/range anxiety, availability and government supports.

The policy is expected to include new financial incentives and other programs to encourage people to trade in their petrol and diesel vehicles for zero-emission models.

ACT minister for energy and emissions reduction Shane Rattenbury said the phase out would initially apply to new light vehicles, including passenger cars, motorcycles, and small trucks, and will be backed up by an EV sales target, with between 80-90 per cent of new vehicle sales in 2030 to be zero-emission models.

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“Our intent is that from 2035, you will not be able to put a new (petrol light vehicle) on the road. There are electric models available right now that you can replace them with. And we expect more models to become available in the coming years,” Rattenbury said.

The ACT already has incentives in place to drive the uptake of EVs, including two years’ free registration for new fully-electric vehicles and fuel-cell EVs and 20 per cent off registration fees for older eligible EVs. It also offers a stamp duty waiver, and access to up to $15,000 towards the cost of an EV up to a cap of $77,565 under the Sustainable Household Scheme zero-interest loans.