The reason is that the state canceled the electric car discount

South Australians will no longer be able to claim a $3,000 rebate when buying an electric car in 2024.

The decision comes as the state government scrambles to find solutions to combat a projected $625 million debt blowout over the next few years.

In his mid-year budget review on Thursday, Treasurer Stephen Mulligan said the federal government's rebate was more of an incentive for people to buy electric cars than the state government's rebate offer.

“The electric car subsidies offered by the states and territories will be completely and utterly absorbed by the new incentives that have been put in place by the new federal Labor government in Albania,” he said.

“Commonwealth incentives are four times the level of state government incentives in Australia”.

The federal government is offering a $12,000 rebate to people who buy electric cars.

However, the treasurer says that those who have already placed an order for an electric car or intend to do so before December 31, 2023, will still be entitled to the government discount.

NSW and Victoria also scrapped their $3000 electric car subsidy earlier than planned.

Mr Mulligan said the subsidy was expected to end when the budgeted 7,000 subsidy was released; However, only 2500 have been paid till date.

A government subsidy was available for the sale of $68,000 worth of electric vehicles.

“What we're seeing now is a much higher number of EVs being purchased in South Australia, outside of the transactions that attract the subsidy,” Mr Mulligan said.

By reducing subsidies, the budget is expected to save 12 million dollars over two years.

The Mid-Year Budget Review predicts net debt will reach $38.2 billion by 30 June 2027, or $20,629.69 of the 1.85 million people currently living in South Australia.

Net debt will increase from $17.7 billion to $28.1 billion by 2027.

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