Businesses will be able to apply for grants under the second round of an expanded $250 million Future Fuels Fund to support uptake of low and zero emissions vehicles over the next four years.
Energy Minister Angus Taylor says up to $128 million will be available to support the integration of electric vehicle technologies into both light and heavy vehicle fleets.
The initiative will also support the commercialisation of hydrogen as a transport fuel in fleets and be managed by the Australian Renewable Energy Agency.
Mr Taylor said more than $2 billion has been committed in total to the future fuels strategy to partner with industry on the uptake of low and zero emissions vehicles.
"Through co-funding the essential enabling infrastructure such as charging stations or even electrical upgrades to three phase power, we will ensure Australian business can embrace technologies that will help to both save on their operation costs and reduce emissions," he said in a statement on Saturday.
"Including hydrogen refuelling as a priority area will help accelerate the decarbonisation of heavy and long-distance vehicle fleets where battery EVs may not be a viable option."
Mr Taylor says the fleets-first approach will also create a larger market for second-hand vehicles, which will improve affordability and accessibility for other consumers.
The future fuels strategy was released in November.
"We will not be forcing Australians out of the car they want to drive or penalising those who can least afford it through bans or taxes," Prime Minister Scott Morrison said at the time.
"Instead, the strategy will work to drive down the cost of low and zero emission vehicles and enhance consumer choice."
The government's latest expectation is that more than $500 million in total private and public co-investment will result in about 84 per cent of the Australian population having access to fast charging and create more than 2600 jobs.
