Australia Considering National Road-User Charge for Electric Vehicles
The Australian government is exploring the possibility of introducing a national road-user charge for electric vehicles, amid concerns that declining fuel excise revenue is putting a strain on the country’s road infrastructure.
Ministers from the Albanese government have confirmed that the measure is being considered, citing the need to secure long-term funding for roads as the number of petrol and diesel vehicles on the roads decreases.
Declining Fuel Excise Revenue
The government has been criticized for overlooking the impacts of electric vehicles on fuel excise revenue, which is a major source of funding for road maintenance and construction.
As more Australians switch to electric vehicles, the revenue from fuel excise is dwindling, leaving a gap in funding for the country’s roads.
According to Social Services Minister Tanya Plibersek, the government is aware of the issue and is working to address it.
“It’s no secret that as the number of petrol vehicles and diesel vehicles goes down, the take from fuel excise decreases,” she said.
State-Based Attempts
In 2021, the state of Victoria attempted to introduce a State-based road-user charge, but the proposal was struck down by the High Court of Australia in 2023.
The Albanese government has since identified the need for a Federal-level scheme to address the issue.
Industry Support
The proposal has gained support from industry members, including Roads Australia chief executive Ehssan Veiszadeh, who welcomed the charge, saying there needed to be a fair, transparent, and future-ready fee system to ensure the country’s roads are adequately funded.
However, not everyone is in favour of the charge.
EV Council chief executive Julie Delvecchio warned against introducing a fee, suggesting that it should only be considered once electric vehicles reach 30 per cent of new vehicle sales.
International Precedent
New Zealand has already implemented an all road-user charge, providing a model for other countries to follow.
The Australian government is expected to discuss the proposal further at an economic reform roundtable next week.