Australian Governments Plan Road-User Levy for Electric Vehicles

The Australian federal government is actively considering implementing a road-user charge for electric vehicle (EV) owners to ensure they contribute to road maintenance, as they currently do not pay fuel excise taxes that fund road infrastructure. Treasurer Jim Chalmers has been engaging with state governments and industry leaders to develop a national approach, with the Productivity Commission also advocating for such a levy. New South Wales has announced plans to introduce a road-user charge by July 2027 or when EVs reach 30% of new car sales, with fees indexed annually and differentiated by vehicle type. Victoria and other states support a revenue-sharing model and are working with the federal government on harmonizing a national charge, despite past legal challenges like Victoria's scrapped EV levy. The Australian Capital Territory suggests a nationwide administration of the levy for fairness and better distribution of funds, alongside calls for improved data sharing and harmonization of policies. This move addresses concerns over declining fuel excise revenue as EV adoption increases, aiming to maintain sufficient funding for road upkeep across Australia.