Australian automotive dealerships, repairers, and mechanics can now access significantly expanded federal government support, with up to $50,000 per site available to upgrade their facilities for electric vehicles (EVs). The Albanese Labor Government announced the expansion of its DRIVEN program on September 8, 2026, targeting a critical need for charging infrastructure and specialised servicing equipment as EV adoption accelerates across the country.
This timely federal investment, part of an $18.8 million rebate stream allocated between 2026 and 2029, arrives as Australia recorded a historic milestone in August 2026: electric vehicles outsold pure petrol and diesel cars for the first time.
Minister for Climate Change and Energy, Chris Bowen, emphasised the program’s role in supporting the automotive sector through this transition.
“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.”
DRIVEN Program Expansion: Key Details for Businesses
The DRIVEN (Dealership and Repairer Initiative for Vehicle Electrification Nationally) program aims to bolster Australia’s capacity to sell, service, and repair the growing fleet of electric vehicles. The latest round of support, open for applications until April 30, 2027, introduces crucial new elements and an increased overall cap per site.
Previously, the program primarily focused on EV charger installations. The expanded scope now includes a substantial rebate for essential EV-specific workshop tools and equipment, addressing a key barrier for many businesses hesitant to invest in the specialised gear required for high-voltage vehicle maintenance.
Rebate Structure Overview
| Incentive Category | Maximum Rebate per Item | Category Cap per Site | Overall Site Cap |
|---|---|---|---|
| EV Charging Plugs | Up to $3,000 per plug | $21,000 | |
| EV Workshop Equipment/Tools | Up to 80% of eligible costs | No specific cap | $50,000 |
Eligible workshop equipment includes high-voltage toolkits, personal protective equipment (PPE), and battery diagnostics machinery. The overall $50,000 site cap ensures comprehensive support for businesses looking to make significant investments in their EV readiness.
James Voortman, CEO of the Australian Automotive Dealer Association (AADA), welcomed the expansion, noting it would provide confidence to dealers investing millions in necessary upgrades.
Why This Matters: Addressing Australia’s EV Boom
The timing of this program expansion is directly linked to the rapid acceleration of EV sales in Australia. August 2026 data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC) revealed that 27,078 battery-electric vehicles were sold, representing 24.9 per cent of the total new car market. This figure surpassed sales of both petrol-only (25,824 units) and diesel-only (23,608 units) vehicles.
The Tesla Model Y continued its strong performance, emerging as Australia’s best-selling vehicle overall in August, with 6,414 units sold. Beyond Tesla, Chinese brands are increasingly dominating the market, with BYD, Geely, Zeekr, and Jaecoo making up a significant portion of the top-selling EVs.
This surge in EV uptake creates an urgent need for a robust support ecosystem, from accessible charging points in suburban areas to qualified technicians and properly equipped workshops. The DRIVEN program directly addresses these challenges by facilitating:
- Increased Charging Availability: By subsidising charger installations at dealerships, the program contributes to expanding Australia’s public and semi-public charging network. While many EV owners primarily charge at home, a reliable public network is crucial for longer trips and for those without dedicated home charging access. For tips on reducing home charging costs, read our guide on Slash Your EV Home Charging Costs by 70% in Australia 2026: A Smart Guide.
- Enhanced Servicing Capabilities: The provision for workshop equipment means that more local mechanics will be able to safely and effectively service EVs, reducing potential bottlenecks and increasing consumer confidence in long-term EV ownership. This also aligns with the broader push for grid integration, where EVs can play a role in energy stability. Learn more about how your EV could contribute to grid stability in our article V2G/V2H in Australia 2026: Is Your EV a $7,000 Home Battery Worth It?.
The total investment for this rebate stream is part of the larger $60 million DRIVEN program, initially announced in 2024. This ongoing commitment highlights the federal government’s strategy to support the automotive industry’s electrification journey, ensuring that the necessary infrastructure and expertise are in place to meet consumer demand. Businesses interested in applying should consult Business.gov.au for full terms and conditions.
With new vehicle efficiency standards also incentivising manufacturers to bring more EV models to Australia, the expanded DRIVEN program is a critical component in ensuring the nation’s automotive sector is prepared for a fully electric future.