Canberra households are set to benefit from expanded financial support for electric vehicle (EV) purchases and home energy efficiency upgrades, following the ACT Government’s recent budget announcement on June 11, 2026. The popular Sustainable Household Scheme has increased its low-interest loan offering from $15,000 to $20,000, while also introducing a new price cap for eligible EVs, aiming to accelerate the territory’s transition to a net-zero future.
This move reinforces the ACT’s position as a leader in EV uptake, having recorded the highest market share nationwide at 36.5 per cent in May 2026, with EVs now comprising 4.5 per cent of its existing vehicle fleet. The enhanced scheme provides a tangible financial incentive for Canberrans looking to reduce their transport and energy costs.
Expanded Loans and New Eligibility Criteria
Under the updated Sustainable Household Scheme, ACT residents can now apply for low-interest loans of up to $20,000 at a fixed rate of 3 per cent. This represents a significant increase from the previous maximum of $15,000, offering greater financial flexibility for larger investments in sustainable technologies.
Crucially for EV buyers, the eligibility criteria for vehicles has been refined. Previously, any EV (excluding plug-in hybrids) below the Luxury Car Tax (LCT) threshold (which currently stands at $91,661 for fuel-efficient vehicles as of July 1, 2026) was eligible. The scheme now applies a specific $60,000 price cap for eligible electric vehicles.
“The ACT government has expanded the size of its low interest loan scheme for EVs and appliances that boost home efficiency, and has also included electric cargo bikes for the first time.”
This adjustment aims to focus the scheme’s benefits on more affordable EV models, making the transition to electric transport accessible to a broader range of households. While some higher-priced EVs may no longer qualify, the move is expected to stimulate demand in the mid-range and entry-level segments of the market. For those considering their first electric vehicle, understanding these incentives is crucial. Our guide, From Petrol to Plug: The Ultimate First-Time Buyer’s Guide to Switching to an EV in Australia 2026, offers comprehensive advice.
What the Changes Mean for Canberran EV Buyers
The $60,000 price cap means that popular models such as the BYD Atto 3, MG4, GWM Ora 5, and the entry-level Tesla Model 3 and Model Y variants will continue to be eligible, or become more attractive under the scheme. For instance, the GWM Ora 5, which recently saw its first shipment arrive in Australia with a starting drive-away price of $33,990, falls well within this new cap.
Meanwhile, the Hyundai Kona Electric, with its entry-grade now priced from $46,000 before on-road costs following recent price adjustments, also remains a strong contender for the loan. The new cap aligns the ACT scheme with a growing segment of the Australian EV market focused on affordability.
| Vehicle Segment | Example Eligible Models (approx. price before ORCs) |
|---|---|
| Small Hatchbacks | BYD Dolphin (from $32,698.90 drive-away), MG4 (from $37,990 drive-away) |
| Small SUVs | BYD Atto 3 (from $48,011), GWM Ora 5 (from $33,990 drive-away), Leapmotor B10 (from $37,888) |
| Medium Sedans | Tesla Model 3 (entry-level, typically under $60k depending on specification and offers) |
| Small-Medium SUVs | Hyundai Kona Electric (from $46,000) |
It is important for prospective buyers to factor in on-road costs when assessing whether a vehicle meets the $60,000 cap. Dealerships can provide precise drive-away pricing.
Beyond EVs: Supporting Sustainable Homes
The expanded loan scheme isn’t limited to electric vehicles. It also continues to support a range of home energy efficiency and electrification upgrades. Eligible items include:
- Electric cooktops
- Heat pump hot water systems
- Reverse cycle air conditioning
- Ceiling insulation
- Solar hot water systems
- Home batteries
This comprehensive approach allows Canberrans to invest in a greener home environment, reducing reliance on fossil fuels and lowering household energy bills. For those looking at broader home energy solutions, options like smart home energy systems can further optimise consumption. Our guide on Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30% provides additional insights.
The Australian Electric Vehicle Association (AEVA) ACT branch has welcomed these measures, noting that they will assist the territory in achieving its net-zero by 2045 target and enhance resilience against volatile fuel supplies. Such low-interest government schemes are a powerful tool for accelerating the uptake of sustainable technologies, complementing federal initiatives like the Fringe Benefits Tax (FBT) exemption for eligible EVs. For a broader understanding of green loan options, our guide Unlock 0% to 4% Green Loans: Your 2026 Guide to Australia’s Household Energy Upgrades Fund (HEUF) provides further context on national programs.
By increasing the loan amount and refining the EV price cap, the ACT Government aims to ensure that its financial incentives effectively support the shift towards more affordable electric transport and sustainable living, directly benefiting Canberran households in 2026 and beyond.