Australia may introduce a road tax for electric vehicles (EVs) as federal and state governments consider ways to offset declining fuel excise revenue, senior ministers said.
The proposal, which would apply to EV drivers in the future, is under discussion ahead of next week’s federal productivity roundtable. Treasurer Jim Chalmers flagged the idea in June, saying he was working with states and territories “on the future of road-user charging” for EVs.
Environment Minister Tanya Plibersek told Seven’s Sunrise program the move could be justified as part of a broader effort to fund infrastructure.
“I don’t think anything’s happening tomorrow, but I do think it’s sensible … for the states and territories, to look long term at what they do, to make sure that there’s enough money to build the roads that people want to drive on,” Plibersek said.
Revenue from the fuel excise — currently used to maintain and build roads — is expected to fall as the share of petrol and diesel vehicles declines. Plibersek noted the shortfall could become more significant in coming years.
Some states have already tested road-user charges for EVs. Victoria introduced a two cent per kilometre levy in 2023, but the High Court later struck it down. New Zealand currently imposes road-user charges on EVs, with plans to extend the policy to petrol cars.
Opposition Senator Jane Hume backed the idea, saying EV owners should contribute to the same infrastructure costs as other motorists.
“The fuel excise has been a shrinking tax base, and it’s one of the few taxes that’s hypothecated for road maintenance,” Hume told Sky News. “We want to make sure that those EV users are making sure that they’re responsible for road maintenance in the same way that petrol and diesel car users are.”
Industry leaders are expected to meet with Chalmers on Monday to discuss options before the roundtable begins.
Source: Smart Company
1 Comment
The easiest, fairest and administrative solution is to charge ALL ROAD USERS a surcharger/tax on new tyres. It would save money, easy to enforce, and catch everyone, from the trucker to the grannie who drive once a week. For example, lets say they state an EV driver should pay 2 cents a kilometer as a fair charge. If you assume a tyre lasts 50,000 km, well for a car thats 50,000 x2 equals $1,000 for the life of the 4 tyres, or $250 a tyre. So you pay that upfront whenever you buy new tyres. Very simple and fair. This then means it doesn’t mater how you drive, or how far, or where, you pay the right amount to your driving style.