{"id":93829,"date":"2025-08-13T07:04:30","date_gmt":"2025-08-12T21:34:30","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=93829"},"modified":"2025-08-13T16:47:55","modified_gmt":"2025-08-13T07:17:55","slug":"ev-road-charges-mb3246","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/ev-road-charges-mb3246\/","title":{"rendered":"EV Road User Charge Discussions Accelerate"},"content":{"rendered":"

\"Driving<\/p>\n

A road user charge for electric vehicle use in Australia seems not a matter of if, more a question of when. But should common sense prevail, it won’t just apply to EVs.<\/p>\n

Early this year, Federal Treasurer Jim Chalmers was said to have floated the idea<\/a> at a private dinner event, and again mentioned road user charges in June<\/a> \u2014\u00a0but not specifically in relation to electric vehicles. The subject was also reportedly raised<\/a> at meeting of transport leaders and government officials at a forum Sydney this week.<\/p>\n

Now it appears a road user charge will see further discussion at The Economic Reform Roundtable<\/a>, being held in Canberra from 19 to 21 August. The event involves leaders from business, unions, the community, government and various experts. They’ll be getting their heads together to build consensus on ways to improve productivity in Australia, enhance our economic resilience and strengthen budget sustainability.<\/p>\n

The reasoning often put forward for introducing an EV road user charge is two-fold.<\/p>\n

Fuel Excise Avoidance<\/h2>\n

Electric vehicle<\/a> owners don’t pay fuel excise (aside from those with plug-in hybrids when they top-up with petrol), and fuel excise pays for roads.<\/p>\n

Sort of.<\/p>\n

The current rate for fuel excise is 51.6 cents for every litre of fuel purchased, but a rebate (tax credit) is provided to some eligible businesses.\u00a0Fuel excise is collected by the Federal Government1<\/a><\/sup> and goes into general revenue, which can be spent on just about anything; including roads2<\/a><\/sup>.<\/p>\n

According to<\/a> the Parliamentary Budget Office:<\/p>\n

“Since 1992, successive Australian Governments have established road funding levels solely in the budget process and there has been no effective link between fuel excise and road expenditure.”<\/p><\/blockquote>\n

The Australian Automobile Association states<\/a> it works out only 57% of the value of fuel excise collected went back into land transport projects in the decade to 2022-23.<\/p>\n

But it’s not just electric vehicles that have (some, but increasing) impact on fuel excise collection. Fuel excise has declined as a proportion of Australian Government revenue over the last 40 years<\/a>; long before electric vehicles hit the scene. And as vehicles generally become more efficient and fuel more expensive, the federal government will be collecting less at the pump.<\/p>\n

So, something has to give; but it’s not just an EV issue.<\/p>\n

Road Damage<\/h2>\n

Electric vehicles can be on the heavy side due to the weight of their batteries and it’s claimed this will lead to increased road damage. But the number of big utes and SUVs on the roads is also growing.<\/p>\n

The Federal Chamber of Automotive Industries (FCAI<\/a>) says July’s top 3 best- selling vehicles in Australia were:<\/p>\n