In 2010, changes to vehicle tax were introduced for vehicles that have a lower impact on the environment.

These ‘lower taxed vehicles’ include:

  • manufacturer designated petrol-electric hybrids
  • diesel-electric hybrids
  • plug-in hybrids
  • electric vehicles
  • vehicles with CO2 emissions no higher than 150 grams per kilometre in the 'combined' driving cycle
  • previously eligible lower taxed vehicles with a rating of 4½ or 5 stars.

Private vehicles that have been modified for wheelchair transport may be eligible for the reduced vehicle tax rate.

The reduced rate is applied when you register the vehicle.

Note: If you receive the Commonwealth Carer Allowance, you may also be eligible. Visit Apply for a carer's registration refund for more information.

Last updated: 9 February 2024