The Australian federal government is currently developing a phased road user charge for electric vehicles (EVs), as indicated by Treasurer Jim Chalmers this week. This proposed charge would replace the existing fuel excise tax traditionally paid by petrol and diesel vehicle owners.
Reports suggest that the initial implementation of this charge will primarily target heavy electric vehicles, as stated by industry insiders and highlighted by the Australian Financial Review. However, light electric vehicles and other low-emission models are expected to be exempt from the charge during the early rollout phase.
Currently, only a handful of EV owners would be impacted by this new charge, with around 700 electric trucks and vans reported on Australian roads by the Electric Vehicle Council. Until now, EV users have not had to pay the fuel excise tax of 51.6 cents per litre that applies to fossil fuel vehicles. As the popularity of electric vehicles grows, there is increasing pressure on the Albanese government to implement this charge.
In a proactive move, the New South Wales government has introduced a legislated charge set to commence on July 1, 2027, or once electric vehicles make up 30 per cent of new car sales. Recent figures reveal that EV sales in Australia have surged to record levels, achieving a near 10 per cent share of all new car sales during the quarter ending on June 30.
Chalmers is scheduled to meet with state treasurers soon to discuss the logistics and details surrounding the proposed EV road user charge. As discussions continue, the federal government is navigating the balance between encouraging electric vehicle adoption while ensuring equitable contributions to road maintenance and infrastructure funding.