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The Future of EV Charging Infrastructure: Spotlight on Australia6 June 2024

In this, our tenth and final country specific article in our “The Future of EV Charging Infrastructure: Spotlight on” series, we focus on Australia and provide a summary of the following:
  • an overview of the Australian e-mobility market;
  • the legal framework for the construction and operation of electric vehicle (“EV”) charging points;
  • existing subsidies and tax benefits to incentivise the construction or operation of EV charging points; and
  • the different business models in the Australian e-mobility market.

"On 19 April 2023, the Australian Federal Government published the National Electric Vehicle Strategy."

Overview of the e-mobility market in Australia

The Australian automotive industry is shifting from mobility to e-mobility. While demand for EVs in Australia soars, the current supply remains limited and well below demand. The Australian e-mobility market is nonetheless evolving in terms of both EV uptake and infrastructure. The relatively low number of EVs on Australian roads and lengthy distances between destinations are key factors affecting the development of EV charging infrastructure. The steps being taken by federal, state and local governments towards an effective legislative framework are expected to support and encourage further EV infrastructure development.

Existing federal and state government incentives for EVs include rebates on the purchase price, Fringe Benefits Tax (“FBT”) exemptions for fleets and novated leases, a higher Luxury Car Tax (“LCT”) threshold and other benefits.

On 19 April 2023, the Australian Federal Government published the National Electric Vehicle Strategy (the “Strategy”), which focusses on three key objectives in the transition to net zero:

  • to increase the supply of affordable and accessible EVs;
  • to establish the resources, systems and infrastructure to enable rapid EV uptake, including making it easier to charge EVs nationally and to build the National EV Charging Network; and
  • to encourage increased EV demand.

The legal framework for the construction and operation of EV charging points

The legal framework for constructing EV charging stations (“EVC Units”) depends on the state or territory in which the charging point is located, and applicable laws and regulations are neither standardised nor harmonised between the states and territories. Key considerations include:

  • environmental and planning regulations: depending on the location and the scale of the installation, development approval and environmental impact assessments (“EIA”) may apply;
  • building codes and standards: EVC Units must comply with electrical safety regulations under the relevant building codes and standards for electronic equipment. If the EVC Units have built-in radio transmitters, with an integral antenna for 3G, 4G, or 5G, Bluetooth, Wi-Fi and RFID, they must comply with the requirements of the Australian Communications and Media Authority set out in AS/NZS 4417.2;
  • electricity regulations: as EVC Units require a stable and adequate power supply, compliance with the regulations on the sale and supply of electricity, and grid capacity is essential. The Strategy recognises the challenges for the existing grid to support an Australia-wide EV charging network. The longer-term plan is for the decarbonisation of the electricity grid through the Federal Government’s AU$20bn ‘Rewiring the Nation’ commitment to substantially increase electricity generation from renewable sources and make Australia’s conventionally powered electricity grids renewable energy powered grids; and
  • data privacy: Australian data privacy laws will govern the personal data of users of EVC Units.

In this article, we will focus on the laws applicable in New South Wales (“NSW”) for the construction and operation of an EVC Unit.

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"Public authorities such as local councils, government departments or agencies can install EVC Units on land they own or control without any planning consent."

Planning approval

Planning and development approvals for the installation of EVC Units in NSW are governed by the NSW Environmental Planning and Assessment Act 1979 (“EP&A Act”) and the NSW State Environmental Planning Policy (Transport and Infrastructure) 2021 (the “Policy”). The Policy provides the following three methods to install an EVC Unit:

Development without consent: public authorities such as local councils, government departments or agencies can install EVC Units on land they own or control without any planning consent but must complete an EIA under the EP&A Act. The EVC Unit must also meet the following requirements:

  • be installed on a footpath adjacent to a parking spot, and is at least 30cm behind the face of the kerb, or at least 1m from a public road;
  • not attached to existing infrastructure and installed in accordance with manufacturer specifications;
  • comply with the following standards:
    • AS/NZS 3000:2018, Electrical installations, or
    • AS/NZS 4417.2:2020, Regulatory compliance mark for electrical and electronic equipment, Part 2: Specific requirements for particular regulatory applications; and
  • not obstruct vehicular, cyclist or pedestrian access and firefighting equipment.

Exempt development: EVC Units installed in private homes, commercial, public or private car parks, service stations and public administration buildings do not require planning approval prior to installation but must comply with existing development consent conditions, including the property rights of owners of adjoining properties, such as easements. In some instances, public authorities can construct EVC Units on existing electricity or lighting poles, parking meters, street signs and rubbish bins without planning approval.

To benefit from the planning approval exemption, the proposed EVC Unit must meet the following requirements:

  1. comply with applicable deemed-to-satisfy provisions of the Building Code of Australia and be structurally adequate. Apartment buildings constructed from October 2023 must include base infrastructure for EVC Units, including future cabling needs and control-point installation;
  2. minimal impact on any state or local heritage or heritage conservation area;
  3. must not involve the removal or pruning of a tree or other vegetation without ministerial consent; and
  4. if installed in a service station or highway service centre, comply with AS/NZS IEC 60079.10.1:2022, Explosive atmospheres, Part 10.1: Classification of areas—Explosive gas atmospheres in addition to AS/NZS 3000:2018 and AS/NZS 4417.2:2020 relating to installation, wiring and compliance marks for electrical equipment.

Development with consent: relevant local governments can issue development approval for the installation of an EVC Unit, where installation does not fall within an exemption. This would include installing an EVC Unit on a public street for the use of a homeowner or occupier, provided the EVC Unit is only used for non-commercial purposes, connected to the owner or occupier’s electricity meter and all cables are underground and fully retractable.

"The CPO must be an authorised retailer or hold an exemption to supply electricity."

Advertising on an enabled charging station

Advertising-enabled EVC Units, where advertising is integrated into the EVC Unit, are automatically permitted under the ‘without consent’ and ‘exempt development’ categories (as set out above) and, in some cases, may be installed after obtaining necessary approval for all other EVC Units. Regulations on the size and content of the advertising will apply.

Electricity supply laws and regulations

The source of electricity and the location of the EVC Unit, whether it is located on a street, in a public carpark or supermarket, at a service station or on a highway will determine the applicable laws and regulations in relation to the supply of electricity. A number of national, and state or territory energy laws and regulations apply to an EV charge point operator (“CPO”), as owner and operator of the EVC Unit and retailer of electricity.

The National Electricity Law (“NEL”), National Electricity Rules (“NER”), National Energy Retail Law (“NERL”), and the National Energy Retail Rules (“NERR”) will apply to and govern EVC Units, which connect an EV to a source of electricity and not to a general power outlet and the supply of electricity to the EVC Units in the National Electricity Market (“NEM”). Metering, connections to the network and sale of electricity to customers are regulated by the Australian Energy Regulator (“AER”). The regulatory regime does not consider EVC Units as a distinct form of demand. Other than the Northern Territory and Western Australia, all Australian states and territories are part of the NEM.

The supply of electricity by a CPO to the occupier of residential or business premises is regulated by the NERL and NERR. The CPO must be an authorised retailer or hold an exemption to supply electricity. It must also comply with regulations governing the sale and supply of electricity to customer connections and minimum energy-specific consumer protection, including in relation to billing, payment, pricing, customer complaints and dispute resolution.

A CPO may be required to register with the Australian Energy Market Operator (“AEMO”) if it purchases electricity from the electricity wholesale market for its customers and complies with requirements relating to participation in the energy and ancillary service markets, network connections and metering under the NEL, NER and AEMO procedures. CPOs do not require AEMO registration as network service providers if the EVC Units are directly connected to the local distribution network or are covered by a deemed network exemption that covers EVC Units within a private network including a privately owned charging station located in a public area, hotel, shopping centre, or university.

In some states and territories in the NEM, licences are required for the sale and supply of electricity. A CPO will potentially require a connection agreement with the electricity distributor for connection of the EVC Unit to the distribution network for the connection services. Current market practice is to provide prior notice to electricity distributors to enable them to assess the impact the proposed EVC Unit(s) may have on the grid and advise of any network upgrades that may be required. The Service and Installation Rules of NSW require distributors to approve any load increases prior to connection.

"CPOs in Australia include Australian roadside assistance businesses, EV manufacturers, oil majors and retailers expanding their businesses to cater to the EV infrastructure needs."

Existing subsidies and tax benefits to incentivise the construction or operation of EV charging points.

Driving the Nation’ fund and state schemes

The Strategy announced the federal government’s commitment to roll out the National EV Charging Network, a truly national network of EV charging infrastructure installed at 117 sites on major highways at an average interval of 150km through the AU$500m ‘Driving the Nation’ Fund.

State governments have also been active in providing incentives for the construction and operation of EV charging stations/points:

  • NSW announced AU$209m for an EV charging network, which includes funding to co-fund installation and operation of ultra-fast charging stations at 100km intervals across the state and every 5km in metropolitan areas. This will support CPOs to construct fast charging stations across the state. To benefit from the fund, applicants must fund a minimum of 50% and 30% of the total project capital cost of standard and fast-track stream sites;
  • Victoria committed AU$19m to accelerate the roll-out of EV charging infrastructure across regional Victoria by 2024;
  • Western Australia (“WA”) committed AU$37m to the WA EV Network to build charging stations along major travel routes, subsidise charger installation by not-for-profit organisations and SMEs and to trial the installation of chargers at train stations; and
  • Queensland announced an AU$10m Electric Vehicle Charging Infrastructure Co-Fund Scheme for the installation of public charging in partnership with third-party providers.
Other benefits for EV users

In terms of federal benefits, the Australian Taxation Office increased the LCT threshold for EVs to AU$84,916 in 2023. Since 1 July 2022, no customs duty is payable on EVs imported into Australia, other than from Russia and Belarus. The Electric Car Discount legislation exempts eligible employers and EV owners from FBT.

"The government’s initiatives to promote EV charging networks across Australia provide significant and tangible opportunities and benefits for CPOs to own and operate charging networks."

Some of the key incentives provided by the respective state and territory governments include rebates on purchase price, stamp duty exemptions or reduced stamp duty rate for new and used EVs, discounts on registration fees and other benefits. For instance, in NSW, EV drivers are permitted to use T2 and T3 transit lanes across NSW. In the Australian Capital Territory, an EV purchaser can access up to AU$15,000 in interest-free loans on EVs priced at AU$77,565.

The different business models in the Australian e-mobility market

CPOs in Australia include Australian roadside assistance businesses, EV manufacturers, oil majors and retailers expanding their businesses to cater to the EV infrastructure needs. While there are no restrictions on electricity distributors installing, owning, and operating EV charging stations, electricity distributors do not currently and generally own and operate EV charging stations. Current market practice is that CPOs, which provide the infrastructure for the construction and operation of EV charging stations, do not supply electricity to those chargers but can be involved in the sale of electricity from the charge points to consumers.

The government’s initiatives to promote EV charging networks across Australia provide significant and tangible opportunities and benefits for CPOs to own and operate charging networks. Australian EV charging companies are applying the petrol service station business model while navigating the unique challenges of long distances between major cities across Australia. While some companies focus on installing high-power public chargers, others are focussed on fast-charging bays which rely on smartphone technology. Whether government incentives assist one or both will only be clear in a few years.

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