Environmental and urban policy groups alike have praised the NSW government's plan to abolish stamp duty on electric vehicles and incentivise the adoption of the vehicles over the next decade.
The $500 million package, to be included in next week's budget, includes cash rebates and stamp duty exemptions on purchases of new EVs.
It also postpones the imposition of an EV "road user charge" until either 2027 or when new EVs make up 30 per cent of new vehicle purchases.
This charge compensates for the government's loss of fuel excise revenue.
The Nature Conservation Council said the package marked "the beginning of the end of the internal combustion engine's 120-year monopoly" in NSW.
"It will not only reduce the climate impact of road transportation, it will reduce the health impact that cars have on people by improving air quality across our congested cities," chief executive Chris Gambian said in a statement.
Committee for Sydney chief executive Gabriel Metcalf also praised the plan, saying in a statement that it was a "major public health win" which would reduce Sydney's air pollution and reduce emissions.
Mr Metcalf said the committee had advocated for an immediate imposition of a road user charge, but would accept the government's six-year delay.
The EV package was among a bevy of policy announcements made by Treasurer Dominic Perrottet on Sunday ahead of Tuesday's budget.
Community and mobile preschools in NSW were made free on a permanent basis, following on from emergency COVID-19 pandemic assistance.
Sydney's Macquarie Street will be revamped into a "cultural hub" in a $119 program, while NSW cultural institutions such as museums will be allocated an additional $40 million to attract international exhibitions.
In health, the government will spend $50 million on a children's neuroscience facility in Randwick and $8.6 million to support those with Parkinson's disease.
The budget will also add $57 million to a pre-existing program helping hundreds of rough sleepers into housing over the next two years.
© AAP 2021