EV repair and servicing gets federal funding in Australia

Key highlights:

• EV workshops can claim 80% of equipment costs, capped at $50,000
• Mechanics can receive a $3000 rebate for each eligible EV charging plug
• Funding expands the original DRIVEN program as EV sales accelerate

Finding a mechanic equipped to service a new electric vehicle (EV) should become easier and cheaper now, with the Federal Government announcing new funding to help workshops buy EV-specific equipment.

Dealers, repairers and mechanics can claim 80% of the cost of eligible EV workshop tools and equipment, up to $50,000 per site, and the government has also introduced a $3000 rebate for each EV charging plug.

The latest announcement expands the Federal Government’s existing $20 million DRIVEN Charger Rebate Stream started in 2024. The program runs from 2026 to 2029 and now includes support for EV-specific workshop equipment, alongside the charging-related assistance.

New funding for EV workshops

Climate Change and Energy Minister Chris Bowen announced the expanded repair support as EV sales continue to climb across Australia.

The funding aims to help dealerships, repairers and mechanics upgrade their facilities as more Australians switch from petrol-powered vehicles to EVs.

Workshops can also retrospectively claim the subsidy for tools they have already purchased, provided the costs were incurred on or after 12 May 2026.

Bowen said, “As electric vehicle sales overtake petrol car sales for the first time in Australia, now’s the time for dealerships, repairers and mechanics to update and upgrade their facilities so more Australian families can power up at a location closer to home.”

Dealers welcome the funding

AADA CEO James Voortman said, “AADA welcomes the Government for recognising that Australia’s transition to electric vehicles requires more than charging infrastructure alone.”

Voortman said franchised dealers already spend millions of dollars on specialised equipment and workplace safety measures to support the growing EV fleet and that the expansion of the DRIVEN Program recognises those costs.

He added, “Recent record EV sales demonstrate that the transition is happening now. These changes will help dealers meet the challenges of the fastest transition the Australian automotive industry has ever experienced while ensuring motorists continue to have access to safe, high-quality EV sales, servicing and repair facilities.”

Also read: Solar Sharer could save Australian EV owners up to $1900

AADA says its advocacy helped

The dealer body also credited its own advocacy for the expansion.

Voortman said, “By adopting AADA’s recommendation to expand the DRIVEN Program, the Government has delivered a practical policy outcome that reflects the realities of modern automotive retailing.”

The AADA represents franchised new-car and truck dealers across Australia.

The Federal Government’s lobbyist register lists AADA as a client of DPG Advisory Solutions, a lobbying firm run by a former adviser to Prime Minister John Howard.

DPG Advisory Solutions has an extensive client list that includes BP, Afterpay, Uber and Facebook.

EV sales surge past petrol-only vehicles

Electric vehicle sales have recorded an unprecedented surge this year, and that growth culminated in August 2026, when EV sales surpassed petrol-only vehicles for the first time in the continent’s history.

Interest in EVs has remained strong since earlier this year, when war in the Middle East pushed fuel prices higher and raised concerns about domestic fuel supplies.