Australia news LIVE: Tax overhaul calls ahead of economic reform roundtable; Trump and Putin prepare to meet in Alaska
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7.02am
16 per cent of all six-year old boys on NDIS, new figures show
By Natassia Chrysanthos
Fresh data from the latest quarterly report from the National Disability Insurance Agency shows more than one in ten children between the ages of five to seven now rely on the National Disability Insurance Scheme.
The figures also disclose that about 80,000 people joined the NDIS in the last 12 months, bringing the total number of Australians relying on the scheme to 740,000 people.
The data is further proof that the scheme remains a lifeline for struggling children, with families seeking its support for their children's developmental delays.
The scheme costs grew by 10.8 per cent last financial year and is still one of the budget's biggest pressures. Its rising cost is set to come into focus at next week's economic roundtable.
6.48am
Teal MP calls for new income tax system ahead of economic roundtable
By Shane Wright, Paul Sakkal and Emily Kaine
Independent MP Allegra Spender has called for an overhaul of the income tax system in a plan she says aims to end 'intergenerational inequity' in the tax system.
The plan would shift the weight of personal income tax from younger working people onto older people, aiming to reward people who work for a wage rather than sink money into property.
The Coalition warned it would pull its support from next week's economic roundtable if the government raised taxes.
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Tax is expected to be the most contentious item on the roundtable's agenda, with business groups already pushing back on a proposal from the Productivity Commission for a deep cut in the corporate rate for firms.
Speaking on ABC's News Breakfast this morning, Spender said she was aiming to 'tilt the balance back to young people'.
'What we can do... is increase their access to their own money through not taxing them as much on their income and paying for that by reducing some of the concessions on wealth,' she said.
'We should be trying to reduce as much as we can that burden on younger people... we can't have a system that continues to focus its tax through increasing the burden on income tax and just through bracket creep.'
6.29am
Welcome
By Emily Kaine
Good morning and welcome to the national news blog from the Sydney Morning Herald and The Age. My name's Emily Kaine, and I'll be leading our coverage through the morning.
It's Friday, August 15.
Here's what's making news this morning.
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The Advertiser
an hour ago
- The Advertiser
Entitled generation: what adult kids are doing to ensure an inheritance
With the cost of living soaring and home ownership out of reach for many of the younger generations, some are hell-bent on protecting an inheritance they believe should be theirs. Over a quarter of Australians are not sure if they will have enough money for their retirement, according to Finder and with the average cost of a house now $1.002 million across the nation, many are hoping an inheritance will save them. But there are concerns an entitled attitude can lead to elder abuse and The Senior has already reported on "Inheritance Impatience", when family members pressure a person for early access to their money. And as the cost of health care for pensioners is set to rise on November 1 and an entry deposit into aged care soared up to $750,000 on July 1, some beneficiaries are trying to cut down their parents' costs. Council on the Ageing (COTA) NSW CEO Gohar Yazdabadi told The Senior the Government's changes to aged care mean that retirees will need to tap into more of their "savings, super and assets" so they can age "safely". "We're seeing more instances of 'inheritance protection', where family members stop older people from spending money on care, so there's more left to inherit, which is clearly a form of elder abuse," she said. "The idea that inheritance is a right, rather than a possibility, is shifting the dynamics of ageing." Ms Yazdabadi said the rise in inheritance impatience is making families forget or not care that retirees need their money to live and age well. "Older people are finding themselves in the difficult situation of having to navigate these expectations along with managing their own financial needs." she said. Eastern Community Legal Centre Managing Lawyer in Elder Abuse Paul Were said the chances of elder abuse can increase when choosing someone to make your medical decisions if you are incapacitated - and they are also in the will. "There's a chance that they might go and make bad decisions, potentially cheaper decisions, so they can try and retain their inheritance," he said. "Some of those medical decisions might be things like how to prolong someone's life. "If that person is also a beneficiary in the will ... they actually may benefit from the death of the person they're supposed to be caring for." The Victorian lawyer said it is hard to know if someone you love and trust might make a decision in their favour to speed up their inheritance, and if retirees are unsure who to appoint, they always have the option to not name anyone. The lawyer said the clients he usually sees are retirees who have discovered their adult children have been mishandling their funds. "Taking money from their bank accounts," he said. "Perhaps they're forcing them to sign documents against their wishes, or transferring their property into their own name." The lawyer also said adding to the problem is when older Australians are being blamed for the housing crisis and the younger generation "develop a sense of entitlement" because they think they also deserve a house. "There's really strong links between elder abuse and ageism," he said. Mr Were did say that despite the risks, many parents feel a sense of "pride" knowing they will be able to gift an inheritance to their family members, which he thinks is "lovely". "It's just the crossover when there's this expectation of that happening ... which is what often leads adult children to take advantage of their parents when they are deteriorating." With the cost of living soaring and home ownership out of reach for many of the younger generations, some are hell-bent on protecting an inheritance they believe should be theirs. Over a quarter of Australians are not sure if they will have enough money for their retirement, according to Finder and with the average cost of a house now $1.002 million across the nation, many are hoping an inheritance will save them. But there are concerns an entitled attitude can lead to elder abuse and The Senior has already reported on "Inheritance Impatience", when family members pressure a person for early access to their money. And as the cost of health care for pensioners is set to rise on November 1 and an entry deposit into aged care soared up to $750,000 on July 1, some beneficiaries are trying to cut down their parents' costs. Council on the Ageing (COTA) NSW CEO Gohar Yazdabadi told The Senior the Government's changes to aged care mean that retirees will need to tap into more of their "savings, super and assets" so they can age "safely". "We're seeing more instances of 'inheritance protection', where family members stop older people from spending money on care, so there's more left to inherit, which is clearly a form of elder abuse," she said. "The idea that inheritance is a right, rather than a possibility, is shifting the dynamics of ageing." Ms Yazdabadi said the rise in inheritance impatience is making families forget or not care that retirees need their money to live and age well. "Older people are finding themselves in the difficult situation of having to navigate these expectations along with managing their own financial needs." she said. Eastern Community Legal Centre Managing Lawyer in Elder Abuse Paul Were said the chances of elder abuse can increase when choosing someone to make your medical decisions if you are incapacitated - and they are also in the will. "There's a chance that they might go and make bad decisions, potentially cheaper decisions, so they can try and retain their inheritance," he said. "Some of those medical decisions might be things like how to prolong someone's life. "If that person is also a beneficiary in the will ... they actually may benefit from the death of the person they're supposed to be caring for." The Victorian lawyer said it is hard to know if someone you love and trust might make a decision in their favour to speed up their inheritance, and if retirees are unsure who to appoint, they always have the option to not name anyone. The lawyer said the clients he usually sees are retirees who have discovered their adult children have been mishandling their funds. "Taking money from their bank accounts," he said. "Perhaps they're forcing them to sign documents against their wishes, or transferring their property into their own name." The lawyer also said adding to the problem is when older Australians are being blamed for the housing crisis and the younger generation "develop a sense of entitlement" because they think they also deserve a house. "There's really strong links between elder abuse and ageism," he said. Mr Were did say that despite the risks, many parents feel a sense of "pride" knowing they will be able to gift an inheritance to their family members, which he thinks is "lovely". "It's just the crossover when there's this expectation of that happening ... which is what often leads adult children to take advantage of their parents when they are deteriorating." With the cost of living soaring and home ownership out of reach for many of the younger generations, some are hell-bent on protecting an inheritance they believe should be theirs. Over a quarter of Australians are not sure if they will have enough money for their retirement, according to Finder and with the average cost of a house now $1.002 million across the nation, many are hoping an inheritance will save them. But there are concerns an entitled attitude can lead to elder abuse and The Senior has already reported on "Inheritance Impatience", when family members pressure a person for early access to their money. And as the cost of health care for pensioners is set to rise on November 1 and an entry deposit into aged care soared up to $750,000 on July 1, some beneficiaries are trying to cut down their parents' costs. Council on the Ageing (COTA) NSW CEO Gohar Yazdabadi told The Senior the Government's changes to aged care mean that retirees will need to tap into more of their "savings, super and assets" so they can age "safely". "We're seeing more instances of 'inheritance protection', where family members stop older people from spending money on care, so there's more left to inherit, which is clearly a form of elder abuse," she said. "The idea that inheritance is a right, rather than a possibility, is shifting the dynamics of ageing." Ms Yazdabadi said the rise in inheritance impatience is making families forget or not care that retirees need their money to live and age well. "Older people are finding themselves in the difficult situation of having to navigate these expectations along with managing their own financial needs." she said. Eastern Community Legal Centre Managing Lawyer in Elder Abuse Paul Were said the chances of elder abuse can increase when choosing someone to make your medical decisions if you are incapacitated - and they are also in the will. "There's a chance that they might go and make bad decisions, potentially cheaper decisions, so they can try and retain their inheritance," he said. "Some of those medical decisions might be things like how to prolong someone's life. "If that person is also a beneficiary in the will ... they actually may benefit from the death of the person they're supposed to be caring for." The Victorian lawyer said it is hard to know if someone you love and trust might make a decision in their favour to speed up their inheritance, and if retirees are unsure who to appoint, they always have the option to not name anyone. The lawyer said the clients he usually sees are retirees who have discovered their adult children have been mishandling their funds. "Taking money from their bank accounts," he said. "Perhaps they're forcing them to sign documents against their wishes, or transferring their property into their own name." The lawyer also said adding to the problem is when older Australians are being blamed for the housing crisis and the younger generation "develop a sense of entitlement" because they think they also deserve a house. "There's really strong links between elder abuse and ageism," he said. Mr Were did say that despite the risks, many parents feel a sense of "pride" knowing they will be able to gift an inheritance to their family members, which he thinks is "lovely". "It's just the crossover when there's this expectation of that happening ... which is what often leads adult children to take advantage of their parents when they are deteriorating." With the cost of living soaring and home ownership out of reach for many of the younger generations, some are hell-bent on protecting an inheritance they believe should be theirs. Over a quarter of Australians are not sure if they will have enough money for their retirement, according to Finder and with the average cost of a house now $1.002 million across the nation, many are hoping an inheritance will save them. But there are concerns an entitled attitude can lead to elder abuse and The Senior has already reported on "Inheritance Impatience", when family members pressure a person for early access to their money. And as the cost of health care for pensioners is set to rise on November 1 and an entry deposit into aged care soared up to $750,000 on July 1, some beneficiaries are trying to cut down their parents' costs. Council on the Ageing (COTA) NSW CEO Gohar Yazdabadi told The Senior the Government's changes to aged care mean that retirees will need to tap into more of their "savings, super and assets" so they can age "safely". "We're seeing more instances of 'inheritance protection', where family members stop older people from spending money on care, so there's more left to inherit, which is clearly a form of elder abuse," she said. "The idea that inheritance is a right, rather than a possibility, is shifting the dynamics of ageing." Ms Yazdabadi said the rise in inheritance impatience is making families forget or not care that retirees need their money to live and age well. "Older people are finding themselves in the difficult situation of having to navigate these expectations along with managing their own financial needs." she said. Eastern Community Legal Centre Managing Lawyer in Elder Abuse Paul Were said the chances of elder abuse can increase when choosing someone to make your medical decisions if you are incapacitated - and they are also in the will. "There's a chance that they might go and make bad decisions, potentially cheaper decisions, so they can try and retain their inheritance," he said. "Some of those medical decisions might be things like how to prolong someone's life. "If that person is also a beneficiary in the will ... they actually may benefit from the death of the person they're supposed to be caring for." The Victorian lawyer said it is hard to know if someone you love and trust might make a decision in their favour to speed up their inheritance, and if retirees are unsure who to appoint, they always have the option to not name anyone. The lawyer said the clients he usually sees are retirees who have discovered their adult children have been mishandling their funds. "Taking money from their bank accounts," he said. "Perhaps they're forcing them to sign documents against their wishes, or transferring their property into their own name." The lawyer also said adding to the problem is when older Australians are being blamed for the housing crisis and the younger generation "develop a sense of entitlement" because they think they also deserve a house. "There's really strong links between elder abuse and ageism," he said. Mr Were did say that despite the risks, many parents feel a sense of "pride" knowing they will be able to gift an inheritance to their family members, which he thinks is "lovely". "It's just the crossover when there's this expectation of that happening ... which is what often leads adult children to take advantage of their parents when they are deteriorating."
9 News
an hour ago
- 9 News
Embarrassing reason Aussies are wasting hundreds of dollars every year
Your web browser is no longer supported. To improve your experience update it here As Australians continue to battle the cost-of-living pressures caused by years of high inflation and interest rates, plenty are wasting hundreds of dollars a year on subscription services they never use, with many even having forgotten about signing up in the first place. Research released by Westpac this week revealed three in every 10 Aussies lose $600 a year on duplicate apps and services they don't use. It also found the average consumer spends an extra 20 per cent on subscriptions than what they realise – the equivalent of about $14 a month or $168 a year. Three in every 10 Australians waste $600 a year on apps they don't use. (Nine / Janie Barrett) "Convenience is clearly appealing to Australians and they're willing to pay for it. But our research has found these services might be running away from them a little bit," Westpac acting chief executive, consumer, Carolyn McCann said. "When we compared total estimated spend against customer transaction data, we could see customers are spending about $14 more each month than they think they are on subscriptions. "While subscription costs might not seem like much in isolation, they can quickly add up – especially if these are apps or services you no longer use. "This is hundreds or even thousands in potential savings that could be redirected elsewhere." Westpac also found its customers are spending more than $2200 a year on takeaway food. (Dominic Lorrimer) The research found that failing to cancel a service during a trial was the main reason people were spending more than they thought, while just under a third of consumers said they'd paid for a subscription they'd forgotten about. A similar proportion (31 per cent) said they found it too difficult to cancel certain services. Westpac also found Australians are spending $141 extra a year on subscriptions, an increase of 11.3 per cent from 2024. That comes as a number of popular streaming providers, including Spotify and Netflix , have increased their prices in consecutive years. Gaming services are the biggest money sinks for Australians, costing the average consumer $55.50 a month ($666 a year), followed by video streamers ($21.63 per month/$260 a year) and music ($16.98 a month/$204 a year). At the same time, Westpac also found its customers are spending a whopping $2200 a year on takeaway food. "Our data suggests customers are willing to spend on what makes life easier, with a significant uplift in spend on food services," McCann said. "But there's also growing awareness around value. "While spend on home and utility subscriptions recorded the second-highest spend growth, customers also said these services delivered the least value." Consumer national Australia finance money Cost of Living Westpac CONTACT US Property News: Rubbish-strewn house overtaken by mould asks $1.2 million.
The Advertiser
2 hours ago
- The Advertiser
Charge ahead: road taxes may be closer than they appear
Rarely do Australians collectively put up their hands to volunteer for a new tax. But it appears to be happening in the automotive industry, with disparate groups calling for the introduction of a road-user charge for electric vehicles to support the nation's future transport needs. It is a proposal likely to be debated this week at the federal government's productivity roundtable after Treasurer Jim Chalmers signalled his support for future changes. But while infrastructure and transport groups agree on a road-user charge as a concept, they disagree on when it should be introduced, who should pay and whether petrol and diesel vehicle drivers should be charged more. While some argue the fee should only apply to electric vehicles not subject to fuel excise, others say a road-user charge would be more effective if applied to every vehicle. The debate over transport taxes follows record EV sales. Australians purchased more than 29,000 of them in the three months to June, according to the Australian Automobile Association, representing nine per cent of all car sales. It also comes amid falling fuel excise collection, which raised $15.71 billion in the 2024 financial year but could fall to zero by 2050 as electric vehicles replace fuel-powered cars, the Parliamentary Budget Office warns. Urgent changes are needed to address Australia's dwindling tax revenue for roads, Infrastructure Partnerships Australia chief executive Adrian Dwyer says. Groups attending a roundtable on the issue last Monday widely agreed the current system for charging motorists was "unfair, unsustainable and inefficient," he says. "A distance-based charge on light EVs is the logical starting point," Mr Dwyer says. "Heavy EVs can be included but starting there alone won't address the issues structural to this debate, namely the core issue of fairness as more light EVs join the fleet." But making electric vehicle drivers pay for all lost tax revenue would also be unjust, according to Polestar Australia managing director Scott Maynard. Fuel excise collection has been dropping for many reasons, he says, including more efficient internal combustion engines. "Petrol cars ... have come down and down in their usage of fuel; their economy has improved and it would be unfair to try and recoup all of the targeted fuel excise revenue strictly from electric vehicle drivers," he says. "To simply, in a really ham-fisted way, nail an addition cost to electric vehicles only at a transitional point where we're trying to get people to consider them as a true alternative to traditionally powered vehicles that pollute our air, is not the way to do it." Adding an ongoing charge to electric cars at early stage in their adoption could make potential buyers reconsider or delay purchases, Mr Maynard says. It is a concern shared by the Electric Vehicle Council, legal and policy head Aman Gaur says, which supports the introduction of a road-user charge but at a suitable time and if introduced for all vehicles. "We support fair funding of our roads but I think there's been really important considerations that have been left out of what I would call a pretty shallow debate about fuel excise at the moment," he says. "We would only support a road-user charge if it's universal; universal and focused on emissions intensity." Any road-user charge should apply to all light vehicles, Mr Gaur says, and should only be introduced to electric cars when their adoption hits 30 per cent. Several state governments have floated plans to introduce a road-user charge for electric and plug-in hybrid electric vehicles from 2027, including NSW, Tasmania, South Australia and Western Australia. However the legality of state-based charges is in question after the High Court found Victoria's Zero and Low Emission Vehicles charge unconstitutional in October 2023. The states' timeline for introducing a charge could be appropriate, Australian Electric Vehicle Association national president Chris Jones concedes, as the nation's electric fleet is likely to reach 30 per cent of new car sales by that date. A road-user charge should be based on a vehicle's mass and how many kilometres it travels each year, he says, and should apply to all vehicles regardless of their fuel source. "The average person drives 12,000km a year so it would work out to cost about $380 to $400 a year." The government should also leave existing fuel excise charges in place, as they would act as an incentive for motorists to purchase low-emission vehicles. "It's directly proportionate to how much pollution you cause," Dr Jones says. "It's an effective pollution tax and we want to discourage people from buying vehicles that run on petrol." While a road-user charge is likely to be discussed at the Economic Reform Roundtable from Tuesday, Dr Chalmers says the government will "take the time to get this right". In the meantime, Mr Gaur says he hopes the road tax reform debate can be tackled sensibly and suggestions EV drivers do not pay to use roads can be discredited as fees include registration, stamp duty, luxury car and fringe benefits taxes, and taxes on electricity. "EV drivers do pay tax," he says. "That is a really pernicious and completely untrue part of this conversation." Rarely do Australians collectively put up their hands to volunteer for a new tax. But it appears to be happening in the automotive industry, with disparate groups calling for the introduction of a road-user charge for electric vehicles to support the nation's future transport needs. It is a proposal likely to be debated this week at the federal government's productivity roundtable after Treasurer Jim Chalmers signalled his support for future changes. But while infrastructure and transport groups agree on a road-user charge as a concept, they disagree on when it should be introduced, who should pay and whether petrol and diesel vehicle drivers should be charged more. While some argue the fee should only apply to electric vehicles not subject to fuel excise, others say a road-user charge would be more effective if applied to every vehicle. The debate over transport taxes follows record EV sales. Australians purchased more than 29,000 of them in the three months to June, according to the Australian Automobile Association, representing nine per cent of all car sales. It also comes amid falling fuel excise collection, which raised $15.71 billion in the 2024 financial year but could fall to zero by 2050 as electric vehicles replace fuel-powered cars, the Parliamentary Budget Office warns. Urgent changes are needed to address Australia's dwindling tax revenue for roads, Infrastructure Partnerships Australia chief executive Adrian Dwyer says. Groups attending a roundtable on the issue last Monday widely agreed the current system for charging motorists was "unfair, unsustainable and inefficient," he says. "A distance-based charge on light EVs is the logical starting point," Mr Dwyer says. "Heavy EVs can be included but starting there alone won't address the issues structural to this debate, namely the core issue of fairness as more light EVs join the fleet." But making electric vehicle drivers pay for all lost tax revenue would also be unjust, according to Polestar Australia managing director Scott Maynard. Fuel excise collection has been dropping for many reasons, he says, including more efficient internal combustion engines. "Petrol cars ... have come down and down in their usage of fuel; their economy has improved and it would be unfair to try and recoup all of the targeted fuel excise revenue strictly from electric vehicle drivers," he says. "To simply, in a really ham-fisted way, nail an addition cost to electric vehicles only at a transitional point where we're trying to get people to consider them as a true alternative to traditionally powered vehicles that pollute our air, is not the way to do it." Adding an ongoing charge to electric cars at early stage in their adoption could make potential buyers reconsider or delay purchases, Mr Maynard says. It is a concern shared by the Electric Vehicle Council, legal and policy head Aman Gaur says, which supports the introduction of a road-user charge but at a suitable time and if introduced for all vehicles. "We support fair funding of our roads but I think there's been really important considerations that have been left out of what I would call a pretty shallow debate about fuel excise at the moment," he says. "We would only support a road-user charge if it's universal; universal and focused on emissions intensity." Any road-user charge should apply to all light vehicles, Mr Gaur says, and should only be introduced to electric cars when their adoption hits 30 per cent. Several state governments have floated plans to introduce a road-user charge for electric and plug-in hybrid electric vehicles from 2027, including NSW, Tasmania, South Australia and Western Australia. However the legality of state-based charges is in question after the High Court found Victoria's Zero and Low Emission Vehicles charge unconstitutional in October 2023. The states' timeline for introducing a charge could be appropriate, Australian Electric Vehicle Association national president Chris Jones concedes, as the nation's electric fleet is likely to reach 30 per cent of new car sales by that date. A road-user charge should be based on a vehicle's mass and how many kilometres it travels each year, he says, and should apply to all vehicles regardless of their fuel source. "The average person drives 12,000km a year so it would work out to cost about $380 to $400 a year." The government should also leave existing fuel excise charges in place, as they would act as an incentive for motorists to purchase low-emission vehicles. "It's directly proportionate to how much pollution you cause," Dr Jones says. "It's an effective pollution tax and we want to discourage people from buying vehicles that run on petrol." While a road-user charge is likely to be discussed at the Economic Reform Roundtable from Tuesday, Dr Chalmers says the government will "take the time to get this right". In the meantime, Mr Gaur says he hopes the road tax reform debate can be tackled sensibly and suggestions EV drivers do not pay to use roads can be discredited as fees include registration, stamp duty, luxury car and fringe benefits taxes, and taxes on electricity. "EV drivers do pay tax," he says. "That is a really pernicious and completely untrue part of this conversation." Rarely do Australians collectively put up their hands to volunteer for a new tax. But it appears to be happening in the automotive industry, with disparate groups calling for the introduction of a road-user charge for electric vehicles to support the nation's future transport needs. It is a proposal likely to be debated this week at the federal government's productivity roundtable after Treasurer Jim Chalmers signalled his support for future changes. But while infrastructure and transport groups agree on a road-user charge as a concept, they disagree on when it should be introduced, who should pay and whether petrol and diesel vehicle drivers should be charged more. While some argue the fee should only apply to electric vehicles not subject to fuel excise, others say a road-user charge would be more effective if applied to every vehicle. The debate over transport taxes follows record EV sales. Australians purchased more than 29,000 of them in the three months to June, according to the Australian Automobile Association, representing nine per cent of all car sales. It also comes amid falling fuel excise collection, which raised $15.71 billion in the 2024 financial year but could fall to zero by 2050 as electric vehicles replace fuel-powered cars, the Parliamentary Budget Office warns. Urgent changes are needed to address Australia's dwindling tax revenue for roads, Infrastructure Partnerships Australia chief executive Adrian Dwyer says. Groups attending a roundtable on the issue last Monday widely agreed the current system for charging motorists was "unfair, unsustainable and inefficient," he says. "A distance-based charge on light EVs is the logical starting point," Mr Dwyer says. "Heavy EVs can be included but starting there alone won't address the issues structural to this debate, namely the core issue of fairness as more light EVs join the fleet." But making electric vehicle drivers pay for all lost tax revenue would also be unjust, according to Polestar Australia managing director Scott Maynard. Fuel excise collection has been dropping for many reasons, he says, including more efficient internal combustion engines. "Petrol cars ... have come down and down in their usage of fuel; their economy has improved and it would be unfair to try and recoup all of the targeted fuel excise revenue strictly from electric vehicle drivers," he says. "To simply, in a really ham-fisted way, nail an addition cost to electric vehicles only at a transitional point where we're trying to get people to consider them as a true alternative to traditionally powered vehicles that pollute our air, is not the way to do it." Adding an ongoing charge to electric cars at early stage in their adoption could make potential buyers reconsider or delay purchases, Mr Maynard says. It is a concern shared by the Electric Vehicle Council, legal and policy head Aman Gaur says, which supports the introduction of a road-user charge but at a suitable time and if introduced for all vehicles. "We support fair funding of our roads but I think there's been really important considerations that have been left out of what I would call a pretty shallow debate about fuel excise at the moment," he says. "We would only support a road-user charge if it's universal; universal and focused on emissions intensity." Any road-user charge should apply to all light vehicles, Mr Gaur says, and should only be introduced to electric cars when their adoption hits 30 per cent. Several state governments have floated plans to introduce a road-user charge for electric and plug-in hybrid electric vehicles from 2027, including NSW, Tasmania, South Australia and Western Australia. However the legality of state-based charges is in question after the High Court found Victoria's Zero and Low Emission Vehicles charge unconstitutional in October 2023. The states' timeline for introducing a charge could be appropriate, Australian Electric Vehicle Association national president Chris Jones concedes, as the nation's electric fleet is likely to reach 30 per cent of new car sales by that date. A road-user charge should be based on a vehicle's mass and how many kilometres it travels each year, he says, and should apply to all vehicles regardless of their fuel source. "The average person drives 12,000km a year so it would work out to cost about $380 to $400 a year." The government should also leave existing fuel excise charges in place, as they would act as an incentive for motorists to purchase low-emission vehicles. "It's directly proportionate to how much pollution you cause," Dr Jones says. "It's an effective pollution tax and we want to discourage people from buying vehicles that run on petrol." While a road-user charge is likely to be discussed at the Economic Reform Roundtable from Tuesday, Dr Chalmers says the government will "take the time to get this right". In the meantime, Mr Gaur says he hopes the road tax reform debate can be tackled sensibly and suggestions EV drivers do not pay to use roads can be discredited as fees include registration, stamp duty, luxury car and fringe benefits taxes, and taxes on electricity. "EV drivers do pay tax," he says. "That is a really pernicious and completely untrue part of this conversation." Rarely do Australians collectively put up their hands to volunteer for a new tax. But it appears to be happening in the automotive industry, with disparate groups calling for the introduction of a road-user charge for electric vehicles to support the nation's future transport needs. It is a proposal likely to be debated this week at the federal government's productivity roundtable after Treasurer Jim Chalmers signalled his support for future changes. But while infrastructure and transport groups agree on a road-user charge as a concept, they disagree on when it should be introduced, who should pay and whether petrol and diesel vehicle drivers should be charged more. While some argue the fee should only apply to electric vehicles not subject to fuel excise, others say a road-user charge would be more effective if applied to every vehicle. The debate over transport taxes follows record EV sales. Australians purchased more than 29,000 of them in the three months to June, according to the Australian Automobile Association, representing nine per cent of all car sales. It also comes amid falling fuel excise collection, which raised $15.71 billion in the 2024 financial year but could fall to zero by 2050 as electric vehicles replace fuel-powered cars, the Parliamentary Budget Office warns. Urgent changes are needed to address Australia's dwindling tax revenue for roads, Infrastructure Partnerships Australia chief executive Adrian Dwyer says. Groups attending a roundtable on the issue last Monday widely agreed the current system for charging motorists was "unfair, unsustainable and inefficient," he says. "A distance-based charge on light EVs is the logical starting point," Mr Dwyer says. "Heavy EVs can be included but starting there alone won't address the issues structural to this debate, namely the core issue of fairness as more light EVs join the fleet." But making electric vehicle drivers pay for all lost tax revenue would also be unjust, according to Polestar Australia managing director Scott Maynard. Fuel excise collection has been dropping for many reasons, he says, including more efficient internal combustion engines. "Petrol cars ... have come down and down in their usage of fuel; their economy has improved and it would be unfair to try and recoup all of the targeted fuel excise revenue strictly from electric vehicle drivers," he says. "To simply, in a really ham-fisted way, nail an addition cost to electric vehicles only at a transitional point where we're trying to get people to consider them as a true alternative to traditionally powered vehicles that pollute our air, is not the way to do it." Adding an ongoing charge to electric cars at early stage in their adoption could make potential buyers reconsider or delay purchases, Mr Maynard says. It is a concern shared by the Electric Vehicle Council, legal and policy head Aman Gaur says, which supports the introduction of a road-user charge but at a suitable time and if introduced for all vehicles. "We support fair funding of our roads but I think there's been really important considerations that have been left out of what I would call a pretty shallow debate about fuel excise at the moment," he says. "We would only support a road-user charge if it's universal; universal and focused on emissions intensity." Any road-user charge should apply to all light vehicles, Mr Gaur says, and should only be introduced to electric cars when their adoption hits 30 per cent. Several state governments have floated plans to introduce a road-user charge for electric and plug-in hybrid electric vehicles from 2027, including NSW, Tasmania, South Australia and Western Australia. However the legality of state-based charges is in question after the High Court found Victoria's Zero and Low Emission Vehicles charge unconstitutional in October 2023. The states' timeline for introducing a charge could be appropriate, Australian Electric Vehicle Association national president Chris Jones concedes, as the nation's electric fleet is likely to reach 30 per cent of new car sales by that date. A road-user charge should be based on a vehicle's mass and how many kilometres it travels each year, he says, and should apply to all vehicles regardless of their fuel source. "The average person drives 12,000km a year so it would work out to cost about $380 to $400 a year." The government should also leave existing fuel excise charges in place, as they would act as an incentive for motorists to purchase low-emission vehicles. "It's directly proportionate to how much pollution you cause," Dr Jones says. "It's an effective pollution tax and we want to discourage people from buying vehicles that run on petrol." While a road-user charge is likely to be discussed at the Economic Reform Roundtable from Tuesday, Dr Chalmers says the government will "take the time to get this right". In the meantime, Mr Gaur says he hopes the road tax reform debate can be tackled sensibly and suggestions EV drivers do not pay to use roads can be discredited as fees include registration, stamp duty, luxury car and fringe benefits taxes, and taxes on electricity. "EV drivers do pay tax," he says. "That is a really pernicious and completely untrue part of this conversation."
