Feds need to step in for electric vehicle tax: RACQ

RACQ has again called for an overhaul of Australia’s road user charging system and urged the Federal Government to step up to help drivers transition to low emissions vehicles without impacting infrastructure budgets.

The Australian reported the New South Wales government would strongly consider the introduction of an electric vehicle tax similar to a scheme proposed by South Australia, within the next year.

RACQ Head of Public Policy Rebecca Michael said the Commonwealth should lead an Australia wide approach to facilitate the transition to electric vehicles.

“Rather than a piecemeal approach to road user charging, the Federal Government needs to work with the states to ensure any reforms are harmonised across the country,” Dr Michael said. 

“Currently fuel excise is a major source of funding for road and transport infrastructure, but the revenue raised from these taxes is under threat if something isn’t done soon to manage the growing uptake of low emissions vehicles.

“While we want to incentivise the uptake of electric vehicles into the future, it’s critical fuel excise tax at a federal level and state-based taxes ensure we have enough money to pay for the roads and infrastructure to keep the country moving. 

“We don’t want to see more taxes for motorists, but it’s important we overhaul our funding model and fuel excise arrangements, to make sure switching to electric vehicles is both affordable for drivers and ensure critical projects continue to be funded.”