Incentives include stamp duty exemptions on EVs and cash rebates as well as other incentives as part of the plan for battery-powered cars to make up more than half of all new car sales by 2031.

But by 2027, EV drivers will need to pay a road-user tax to fund road and infrastructure spending to make up for fuel excise revenue loss to the state government.

The Nature Conservation Council (NCC) welcomed the announcement and said it signaled the beginning of the end of the internal combustion engine's 120-year monopoly on road transportation in NSW.

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NCC CEO Chris Gambian said it was a historic package and significantly increased the state government's commitment to climate action.

"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," he said.

Notably, the funding includes an allocation of $171 million for EV infrastructure, with $131 million going towards ultra-fast vehicle chargers, $20 million in grants for 'destination chargers' in regional areas and $20 million for charging infrastructure at public transport hubs on land owned by Transport for NSW.

SHASA president Kathryn Maxwell said the organisation was very excited about the announcement and wanted to ensure the South Coast received enough EV chargers.

"The South Coast of NSW is currently a black spot for EV chargers and we anticipate this package will result in the installation of EV chargers in Braidwood, Bungendore, Ulladulla, Milton, Moruya, Narooma and Cobargo," she said.

"This will ensure that the region does not lose tourists who drive EVs and ensures locals with EVs can travel with ease to Canberra and Sydney."

The $490 million EV package also included: