Do you know what hybrid cars Australia has for the eco-conscious? Are you looking for one of these vehicles for yourself? Believe it or not, hybrid vehicles have become a significant part of Australia’s automotive landscape. And this is for many reasons.
For one, they offer a blend of fuel efficiency, environmental benefits and enhanced performance. And that’s not all. It also comes with a lot of government incentives and benefits, federal and state.
What Are Hybrid Cars?
Hybrid cars utilise both an internal combustion engine and an electric motor to power the vehicle. This combination allows for improved fuel efficiency and reduced emissions compared to traditional petrol or diesel vehicles. There are several types of hybrid vehicles:
- Mild Hybrid (MHEV) – Uses a small electric motor to assist the engine but cannot power the vehicle independently.
- Full Hybrid (HEV) – Can operate on the engine, the electric motor or a combination of both, allowing short distances to be driven on electric power alone.
- Plug-in Hybrid (PHEV) – Features a larger battery that can be recharged via an external power source, enabling longer electric-only driving ranges.
Hybrid Cars Australia: Benefits to Consider
- Fuel Efficiency and Cost Savings – Hybrid vehicles typically consume less fuel than conventional cars, leading to cost savings over time. For instance, the Toyota Corolla Cross hybrid offers impressive fuel economy, making it a cost-effective choice for Australian drivers.
- Environmental Impact – By emitting fewer pollutants, hybrids contribute to reduced greenhouse gas emissions, supporting Australia’s environmental goals. The Green Vehicle Guide highlights that hybrid vehicles provide the benefits of both electric and petrol motors, aiding in environmental conservation.
- Performance Enhancements – The combination of an internal combustion engine and an electric motor adds extra power and enhanced performance to a hybrid, as electric motors deliver maximum torque instantly. This results in a responsive and smooth driving experience.
Popular Hybrid Car Models in Australia
- Toyota Corolla Cross – Launched in Australia in October 2022, the Corolla Cross offers a hybrid powertrain with both front-wheel and all-wheel drive options. As of July 2024, the Corolla Cross lineup in Australia became hybrid-only, reflecting Toyota’s commitment to hybrid technology.
- Hyundai Kona Hybrid – The second-generation Kona, revealed in December 2022, is available with a hybrid powertrain. It features a larger footprint for increased interior space and boasts a drag coefficient of 0.27, enhancing its aerodynamic efficiency.
- Mazda CX-90 – Introduced with both mild hybrid and plug-in hybrid options, the CX-90 offers a 3.3-liter turbocharged inline-six gasoline engine with the M-Hybrid Boost system, producing up to 340 horsepower. This model represents Mazda’s entry into the hybrid SUV market in Australia.
- Suzuki Swift Hybrid – This compact hatchback is known for its affordability and fuel efficiency. The Swift Hybrid operates as a mild hybrid, using a small electric motor to assist with acceleration and energy regeneration during braking, offering a practical choice for budget-conscious drivers.
Government Incentives for EV and Hybrid Cars in Australia
In Australia, government incentives for hybrid vehicles vary across federal and state levels, with a primary focus on fully electric vehicles (EVs) and, to a lesser extent, plug-in hybrid electric vehicles (PHEVs). Here’s an overview of the current incentives:
Federal Incentive
Fringe Benefits Tax (FBT) Exemption – The federal government offers an FBT exemption for employers providing eligible low and zero-emission vehicles to employees. This exemption applies to battery electric vehicles (BEVs) and PHEVs below the luxury car tax threshold for fuel-efficient vehicles. However, the FBT exemption for PHEVs is set to end on April 1, 2025.
State and Territory Incentives
Incentives differ by state and territory, with most targeting BEVs and, in some cases, PHEVs. Traditional hybrid vehicles, which cannot be externally charged, generally do not qualify for these incentives.
Victoria:
Subsidies – Victoria provides a subsidy of $3000 for BEVs priced under $68,740. This program aims to support the adoption of zero-emission vehicles.
Reduced Stamp Duty and Registration Fees – EV and PHEV owners benefit from reduced stamp duty rates and a $100 discount on registration fees.
Western Australia (WA):
Rebate – WA offers a $3500 rebate for new BEVs and hydrogen fuel cell vehicles priced under $70,000. This incentive is available for the first 10,000 vehicles sold or until May 10, 2025, whichever comes first.
Australian Capital Territory (ACT):
Stamp Duty Exemption and Free Registration – The ACT provides a stamp duty exemption and two years of free registration for new zero-emission vehicles
Muscle Money Can Help with EV and Hybrid Car Loans
While Australia offers various incentives to promote the adoption of low and zero-emission vehicles, traditional hybrid vehicles that lack external charging capabilities generally do not qualify for these benefits. Prospective buyers should consult the latest information from federal and state government resources to understand the specific incentives available for different vehicle types, as policies are subject to change.
Whether you get a full EV or a hybrid vehicle, know that you are helping the environment one way or the other. If you’re seriously considering any of these green rides, Muscle Money can help you find the right green car loan for such a venture. Contact us today so we can show you how you can start driving and riding green.
Caleb Waye-Harris, Senior Manager of Asset Finance at Muscle Money, has almost 15 years of relevant experience in the finance industry. His extensive background includes project management, consumer and commercial lending and asset-based lending.
