Australia Considers National Road-User Charge for Electric Vehicle Drivers
The Australian government is working on introducing a national road-user charge for electric vehicle (EV) drivers, with reports suggesting the fee may be fast-tracked as part of broader tax reform and productivity targets.
Treasurer Jim Chalmers flagged the establishment of road user taxes for EV drivers during the federal election in May, and it is believed to be a key topic of discussion at an economic summit in Sydney today.
Background
Petrol and diesel car drivers in Australia already pay a road-user fee through the fuel excise tax.
The government is now exploring ways to ensure EV drivers contribute to road maintenance costs, with Chalmers indicating he would push for the EV charge during Labor’s second term.
Government Response
Labor frontbencher Murray Watt downplayed the discussions, stating that the EV charge has been “no secret” and that the government would work with states and territories on the matter.
However, Watt refused to provide a timeline for the implementation of the charge, calling it “premature” to speculate.
State Governments’ Stance
The New South Wales government has already flagged plans to apply a road-user charge to EV drivers by July 1, 2027, or when EVs make up 30% of all new car sales, whichever comes first.
The charge would be indexed to the consumer price index for each financial year.
Victoria has also expressed support for a national road-user distance-based charge on EVs, provided a revenue-sharing model is established.