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Road tax for Australian EV users ‘sensible’, Tanya Plibersek says ahead of key economic summit Road tax for Australian EV users ‘sensible’, Tanya Plibersek says ahead of key economic summit
(about 2 hours later)
Treasurer Jim Chalmers has said he is working with states and territories ‘on the future of road-user charging’ for electric vehicles as fuel excise revenue decreasesTreasurer Jim Chalmers has said he is working with states and territories ‘on the future of road-user charging’ for electric vehicles as fuel excise revenue decreases
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Electric car drivers could be hit with a road tax, with the federal MP Tanya Plibersek framing it a “sensible” move as more people switch to EVs.Electric car drivers could be hit with a road tax, with the federal MP Tanya Plibersek framing it a “sensible” move as more people switch to EVs.
Ahead of the federal government’s productivity roundtable next week, the idea of a road tax has been floated as an idea to ensure money is set aside for road upkeep. Ahead of the federal government’s productivity roundtable next week, the idea of a road tax has been floated.
The possibility was flagged by the treasurer, Jim Chalmers, during a speech in June. Chalmers had said he was working with the states and territories “on the future of road-user charging” for EVs.The possibility was flagged by the treasurer, Jim Chalmers, during a speech in June. Chalmers had said he was working with the states and territories “on the future of road-user charging” for EVs.
Transport industry leaders met on Monday ahead of next week’s roundtable.Transport industry leaders met on Monday ahead of next week’s roundtable.
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While the federal government has maintained the issue was for states and territories, the minister for social services, Tanya Plibersek, said a tax for EV users made sense.While the federal government has maintained the issue was for states and territories, the minister for social services, Tanya Plibersek, said a tax for EV users made sense.
“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,” she told Seven’s Sunrise program.“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,” she told Seven’s Sunrise program.
“It’s no secret that as the number of petrol vehicles and diesel vehicles goes down, the tax from fuel excise decreases [and] that means less money for building and maintaining roads.“It’s no secret that as the number of petrol vehicles and diesel vehicles goes down, the tax from fuel excise decreases [and] that means less money for building and maintaining roads.
“The states and territories have been looking at this for some time.”“The states and territories have been looking at this for some time.”
Money collected as part of the fuel excise is allocated for fixing roads but concerns have been raised there will be less set aside in coming years as the number of EVs on the roads increases. Money collected by the fuel excise helps fund the federal budget and is not directly allocated to roads but some motoring groups have urged governments to adopt road pricing as EV uptake grows.
Victoria tried to put in place a 2c per kilometre charge on EV users in 2023 but the proposal was overruled by the high court.Victoria tried to put in place a 2c per kilometre charge on EV users in 2023 but the proposal was overruled by the high court.
New Zealand has a scheme in place for road-user charges for EVs, with petrol cars soon to be added to the tax.New Zealand has a scheme in place for road-user charges for EVs, with petrol cars soon to be added to the tax.
The Coalition senator Jane Hume said more needed to be done to fix ailing roads, which a broader road tax could achieve.The Coalition senator Jane Hume said more needed to be done to fix ailing roads, which a broader road tax could achieve.
“The fuel excise has been a shrinking tax base, and it’s one of the few taxes that’s hypothecated for road maintenance,” she told Sky News.“The fuel excise has been a shrinking tax base, and it’s one of the few taxes that’s hypothecated for road maintenance,” she told Sky News.
“The rise of EVs is something that has happened exponentially in the last few years.“The rise of EVs is something that has happened exponentially in the last few years.
“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.”“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.”
This article was amended on 11 August 2025. A previous version incorrectly stated that fuel excise is set aside for roads spending. It is in fact part of the federal government’s consolidated revenue.