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News.com.au
2 hours ago
- News.com.au
How the Albanese Government plans to revolutionise the taxes you pay for driving a car
Australia's new tax on electric vehicle drivers is set to kick off with a trial period for trucks before it stings cars. can reveal that the Albanese Government is looking at a staged rollout to test the proposed new EV tax and trucks will be the first cab off the rank. It is also interested in a new road user charge that sends price signals on the best time to be on the road, or the freeway. Over time, it could replace petrol taxes and apply to all cars based on distance travelled and when cars and trucks are on the road to tackle congestion. Free ride for EVs nearly over The free ride enjoyed by drivers of electric vehicles is coming to a close with Treasurer Jim Chalmers and state governments finalising plans for a new road-user charge. All Australian motorists who buy petrol and diesel at the bowser pay 51.6 cents a litre in fuel excise. But drivers of EV vehicles pay nothing. 'The status quo won't be sustainable over the next decade or two,'' Treasurer Jim Chalmers told 'As more and more people get off petrol cars and into EVs we've got to make sure that the tax arrangements support investment in roads. 'But we're in no rush, changes of this nature will be made, because the status quo won't work in 10 or 20 years.' The Treasurer made no secret of his support for a road user charge before the election, but favours a staged rollout of the changes. Based on a planned NSW road user scheme, a national rollout will depend on your mileage but might cost between $300 and $400 a year. Victorian Treasurer Tim Pallas said that electric vehicles are 'heavier and do more damage to the road network as a consequence than do internal combustion engine vehicles'. 'By giving drivers a clear signal about the cost of infrastructure, they would have an incentive to use it more efficiently,' the Productivity Commission report said. How does fuel excise work? The current rate of fuel excise is 51.6 cents in excise for every litre of fuel purchased. For a typical household with a car running on petrol, the tax costs more than $1200 a year. But the flat sales tax isn't paid by drivers of pure electric vehicles, who simply need to plug in their cars to recharge. While registration and driver's licence fees go to state and territory governments, fuel excise is collected by the federal government. Australian motorists paid an estimated $15.71 billion in net fuel excise in 2023-24, and are expected to pay $67.6 billion over the four years to 2026-27. However, governments have long-warned that a road-user charge will be required to fill the gap in the budget left by declining revenue from the fuel excise, as the petrol and diesel engines in new cars consume less fuel and Australians adopt hybrid and electric cars. What does the AAA say? The Australian Automobile Association (AAA) is calling for a national approach to road-user charging but wants a guarantee the revenue will be earmarked for road upgrades. The AAA backs a distance-based road-user charging as a fairer and more equitable way to fund land transport infrastructure. The 2024 federal budget forecasted a reduction in fuel excise receipts by $470 million over four years from 2024-25. Roadblocks to reform Currently, New South Wales is the only state with firm plans to introduce a road-user charge from 2027 or when EVs reach 30 per cent of new car sales. Plug-in hybrid EVs will be charged a fixed 80 per cent proportion of the full road-user charge to reflect their vehicle type. Western Australia has also stated an intention to implement a road-user charge. Meanwhile, Victoria's electric vehicle levy had to be scrapped following a ruling from the High Court. Two Victorian electric car owners launched a legal challenge on the basis the tax was not legal as it was an excise that only a federal government could impose. They won, with the High Court upholding the legal challenge. There have been several false starts to enshrine a road-user charge including in South Australia, where the former Liberal Government planned to introduce a charge for plug-in electric and other zero emission vehicles, which included a fixed component and a variable charge based on distance travelled. It was later pushed back to 2027 due to a backlash before the legislation was ultimately repealed. 'Gold standard' for reform Some experts argue the gold standard for reform is a variable rate that factors in the vehicle's mass, distance travelled, location, and time of day. But there's a big barrier to the Commonwealth imposing those charges because the Constitution prohibits it from imposing taxes that discriminate between states or parts of states.


SBS Australia
5 hours ago
- SBS Australia
McCarthy raises 'concerns' with NT about return of spit hoods and youth incarceration
The federal government has raised concerns about youth incarceration and the re-introduction of spit hoods in jail in a meeting with the Northern Territory Chief Minister Lia Finocchiaro. Minister for Indigenous Australians Malarndirri McCarthy held talks with Finocchiaro on Wednesday. "Earlier this week I met with the Northern Territory chief minister, in those discussions I made very clear the concerns I have in regards to First Nations youths in watch houses and the reintroduction of spit hoods," McCarthy said in a statement. "As minister for Indigenous Australians, I will continue working with my ministerial colleagues to keep state and territories accountable for their commitments to close the gap on justice outcomes." Finocchiaro described the meeting as "productive". She said she outlined the Territory government's "clear focus on reducing crime, rebuilding the economy, and restoring our Territory lifestyle," she said. "Today's NT Police statistics confirm our approach is working — with 605 fewer victims of crime in just the past six months." 'As we enter our second year of government, our priorities are clear: get more kids to school, hold parents accountable, and create productive pathways for young people. Tackling these drivers is critical to reducing crime and building safer, stronger communities.' The Country Liberal Party-led NT Government has a parliamentary majority with 17 out of 25 seats and passed legislation to amend the Youth Justice Act earlier this month. The changes included bringing back spit hoods in youth detention centres, a practise banned by the former NT Labor government following a royal commission into juvenile justice and child protection in the NT. The amendments also included removing detention as the last resort for children and increasing the scope of reasonable force for Youth Justice Officers, along with increasing the number of offences that are not required to prioritise a youth diversion program instead of prison. Closing the Gap outcomes worst in NT The legislation fuelled concerns raised at the Garma Festival in North East Arnhem Land about the likelihood that it would lead to increasing numbers of children in the NT prison system, and would be at odds with the agreements between the NT and Federal Government to Closing the Gap . One of the Closing the Gap targets is to ensure 'young people are not overrepresented in the criminal justice system", specifically to cut the rate of Aboriginal and Torres Strait Islander young people between the ages of 10 and 17 in detention by at least 30 per cent by 2031. The Australian Human Rights Commission has raised concerns the NT Government's legislation is discriminatory and a complaint on behalf of human rights lawyers and Indigenous leaders has been lodged with the United Nations. "Children's exposure to the justice system is a symptom of systemic racism and intergenerational trauma that compounds complex unmet needs and underlying issues such as poverty, homelessness, disability, health and mental health issues and domestic, family and sexual violence," the Aboriginal and Torres Strait Islander Social Justice Commissioner Katie Kiss said when the legislation was being canvassed. McCarthy also addressed the meeting of federal, state and territory attorneys general on Friday in Sydney. "I highlighted the escalating numbers of First Nations people in prisons across the country, in particular our youth, and reiterated that deaths in custody have to stop," she said. "I called on state and territory Attorneys-General to do more to reduce the incarceration rates of First Nations adults and young people." "State and territory governments have a responsibility to make decisions that align with their commitments under the National Agreement on Closing the Gap." She said the NT had the worst Closing the Gap outcomes. Finocchiaro said the tough crime measures that have been imposed by her government have reduced the number of victims of crime by 4.7 per cent in the last six months. Compared to the same period in 2024 she said the number of house break ins has been reduced by 375 and property offences are down by 503 cases. "Our plan to reduce crime is working, but my team and I know there is much more work to do, and we are getting on with the job." "We will continue to work with police, courts and corrections to deliver stronger laws and enforcement, better victim support, and faster justice." "Community safety will always come first under our CLP government," Finocchiaro said. She said the change since taking office was evidence that the former Labor NT government did not have the right policies in place, had placed offenders first and 'scarred' the community.


ABC News
5 hours ago
- ABC News
Guy Montgomery's Guy Mont Spelling Bee (NZ): S2 Episode 1 Guy Montgomery's Mum, I'm Coming For You Now
Guy Montgomery's Guy Mont Spelling Bee (NZ) NEW SEASON Competition & Quiz Shows Entertainment Feel-Good Watch Article share options Share this on Facebook Twitter Send this by Email Copy link WhatsApp Messenger Guy Montgomery and co-host Sanjay Patel return in this fast-paced hilarious comedy that puts four famous faces through their paces, as they attempt to spell as best they can to be crowned that week's best speller.