Comment: EV road user tax ‘makes no sense'
If the government is serious about improving air quality, reducing the nation's reliance on foreign energy sources and reaching carbon emissions goals, it shouldn't discourage people from choosing electric cars.
It's like tackling on the obesity problem by introducing a salad tax.
It makes no sense.
Hitting EV owners with an extra $500 per year – or thereabouts – in road user fees will only discourage people from going green.
Yes, electric car owners do not pay the fuel excise tax that helps build and repair our roads.
I reckon that's a fair price to pay, at least today, for the broader social benefits of electric cars.
There are more EVs on sale than ever, and the price gap between petrol and electric cars continues to shrink.
But electric cars still struggle for traction.
Aussie drivers have bought 54,364 electric cars this year – just 97 more than the same period in 2024.
You could hardly call that growth.
Especially when sales of other vehicle types continue to grow, and electric vehicle market share has slipped from 7.4 to 7.0 per cent this year.
Introducing a new pay-by-the-mile tax on electric cars would only serve to push motorists away from zero emission vehicles, back toward combustion-powered cars.
And EVs need all the help they can get.
Hyundai just launched the Ioniq 9, an electric cousin to the Santa Fe and Palisade. The electric model starts at about $130,000 drive-away, roughly double the asking price of its combustion-powered cousins.
Kia's electric EV9 is outsold by the combustion-powered Sorento by about 30 to 1, and Volkswagen's battery-powered ID. 4 and ID. 5 duo are outsold 10 to 1 by the petrol Tiguan.
Over at Toyota, deliveries of the electric bZ4X represent just 0.3 per cent of its 142,700 sales this year.
EVs are here.
Customers just aren't choosing them.
There are headlines just about every day from car companies trying to figure out how to handle EVs in Australia.
Hyundai says it has done 'a terrible job' convincing customers to make the switch, Honda says there is 'a lot of noise' surrounding EVs while people quietly buy hybrids and Suzuki, plainly, says they 'just don't think the Australian market wants them'.
They might be right.
We quizzed more than 50,000 readers earlier this year as part of The Great Aussie Debate and found that only 14.9 per cent of people were considering an EV for their next car.
That represented a drop from 18.9 per cent in 2023.
The government wants us to get behind the wheel of electric cars, even if we don't want to choose them.
A new tax is a strange way to try and change that.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


West Australian
11 hours ago
- West Australian
Free ride could soon be over for EV owners as the Australian Government eyes national road-user charge
The free ride could soon be over for electric vehicle owners with the Australian Government confirming it's eyeing a national road-user charge. As petrol and diesel cars disappear from the roads, senior Labor ministers admit it's 'no secret' EV drivers may soon face new fees to help pay for Australia's crumbling infrastructure amid speculation it's on the agenda at next week's economic reform roundtable. Tanya Plibersek said the measure was being considered as declining numbers of petrol and diesel vehicles eroded Australia's fuel excise revenue — a major source of road funding. 'It's no secret that as the number of petrol vehicles and diesel vehicles goes down, the take from fuel excise decreases. That means less money for building and maintaining roads. So, the States and Territories have been looking at this for some time,' she said. She stressed any charge 'wouldn't be happening tomorrow' but said it was important to consider long-term measures to secure road funding. 'I'm sure the Treasurer will be very interested in the discussion,' she said. Fellow frontbencher Murray Watt downplayed the discussions. 'It's no secret that we've said previously we'll work with the states and territories on this matter,' Watt said. Senator Watt said it was too 'premature' to say when the charge would be enforced: 'I wouldn't want to jump ahead of any sort of decision-making with that'. 'You'd be aware that there was a High Court decision which really raised this issue front and centre and ever since then, we've been working with the states and territories,' he added. Victoria had tried to implement a State-based road-user charge in 2021 but the proposal was struck down in 2023 by the High Court of Australia. Identifying that it needs to be introduced at a Federal level the Albanese Government is working on a scheme of its own. Federal Labor support for the charge came as Treasurer Jim Chalmers attended an Infrastructure Partnerships Australia-hosted road-user charging forum alongside industry members and public servants in Sydney on Monday. IPA chief executive Adrian Dwyer told the ABC momentum was growing to introduce a distance-based charge for EV owners and said it would have little impact on EV adoption. Nationals MP Barnaby Joyce said he supported EV drivers paying their fair share. 'They definitely should, 100 per cent they should,' Mr Joyce said. Mr Joyce said current system unfairly benefitted city drivers who were less likely to use combustion-powered vehicles than those in the regions. 'I have a sense there's a lot of EVs in Tanya's electorate. We out here are overwhelmingly combustion engines because… it's different terrain and we feel that we're paying the excise that other people in the inner city are getting away with,' he said. Opposition leader Sussan Ley accused the Albanese Government of convening the three-day roundtable next week to 'work out how they can levy more taxes on Australians' using the EV charge as an example. 'They're getting ready for their productivity roundtable. It's three days of working out how they can levy more taxes on Australians. We're watching them closely,' she told 4GB radio on Monday. Roads Australia chief executive Ehssan Veiszadeh was among guests at the Sydney forum and welcomed the charge, saying there needed to be a fair, transparent and future-ready fee system. 'Fuel excise revenue is in terminal decline. Without reform, we risk a future where our roads are underfunded, unsafe, and unable to support the demands of a growing population,' Mr Veiszadeh said. 'We're not just talking about replacing a tax — we're talking about rebuilding equity in how we fund the roads Australians rely on every day,' Mr Veiszadeh said. Australian Automobile Association managing director Michael Bradley was also in attendance. Other nations, including New Zealand, have already implemented all road user charge.


West Australian
12 hours ago
- West Australian
Premier's verdict on Riverside Drive facelift that could become the new home for Rio Tinto
Roger Cook has thrown his support behind a major facelift for Perth's convention centre amid concerns about the cost and only days after his deputy called the project 'hypothetical'. Senior Government sources claim Treasury officials are baulking at the cost of the project, 18 months after the Cook Government trumpeted the proposed design as an 'exciting' vision. On Monday, the Premier denied the redevelopment is in danger of being shelved and confirmed he has even lobbied mining giant Rio Tinto to move-in 'We did encourage Rio Tinto to consider that as one of the sites that they're looking to base their new WA headquarters at,' Mr Cook said. 'And two, the project is not in limbo. We continue to work with the project proponents. They've put a proposal to the State and we'll consider it in due course.' The West Australian understands the proposal will be examined by Cabinet's powerful expenditure review committee this week, but that a final decision on funding could be delayed over concerns about a potential $1 billion price tag. Responding to concerns about traffic disruption during construction last week, Treasurer Rita Saffioti said the project was no certainty. 'These are all hypothetical, we haven't agreed to the full details of that project yet,' she said. On Sunday, Ms Saffioti said she remained 'very keen' to see the project go ahead, but refused to be drawn on a budget. 'We all want to see a new convention centre, but we have to go through the process and make sure we understand the cost for the State,' Ms Saffioti said. 'We need to make sure we get the best value for money for the State, we need to go and make sure that this project can be delivered as we wanted. So we're going through all those processes now. It's a big, big project.' The Government has already spent $35.5 million on the project definition phase, with joint venture partners Wyllie Group and Brookfield. Construction was tipped to start in late 2025, with a target completion date of 2029 in time to host the LNG 2029 conference that Queensland's State Government has now put it's hand up to host - if Perth can't. The PCEC has been labelled an eyesore or 'white elephant' since it opened in 2004, with the Cook Government promising a redeveloped site would provide billions of dollars worth of economic and tourism benefit. The expanded venue would fit up to 7,000 conference delegates and include 23,500 square metres of floorspace for exhibitions. The project also includes space for a new home for SciTech, a new ferry terminal, a hotel and residential apartments, as well as commercial and hospitality venues on prime waterfront real estate.

News.com.au
12 hours ago
- News.com.au
Comment: EV road user tax ‘makes no sense'
COMMENT: Electric car owners should pay their way, but now isn't the time to smash them with a new tax. If the government is serious about improving air quality, reducing the nation's reliance on foreign energy sources and reaching carbon emissions goals, it shouldn't discourage people from choosing electric cars. It's like tackling on the obesity problem by introducing a salad tax. It makes no sense. Hitting EV owners with an extra $500 per year – or thereabouts – in road user fees will only discourage people from going green. Yes, electric car owners do not pay the fuel excise tax that helps build and repair our roads. I reckon that's a fair price to pay, at least today, for the broader social benefits of electric cars. There are more EVs on sale than ever, and the price gap between petrol and electric cars continues to shrink. But electric cars still struggle for traction. Aussie drivers have bought 54,364 electric cars this year – just 97 more than the same period in 2024. You could hardly call that growth. Especially when sales of other vehicle types continue to grow, and electric vehicle market share has slipped from 7.4 to 7.0 per cent this year. Introducing a new pay-by-the-mile tax on electric cars would only serve to push motorists away from zero emission vehicles, back toward combustion-powered cars. And EVs need all the help they can get. Hyundai just launched the Ioniq 9, an electric cousin to the Santa Fe and Palisade. The electric model starts at about $130,000 drive-away, roughly double the asking price of its combustion-powered cousins. Kia's electric EV9 is outsold by the combustion-powered Sorento by about 30 to 1, and Volkswagen's battery-powered ID. 4 and ID. 5 duo are outsold 10 to 1 by the petrol Tiguan. Over at Toyota, deliveries of the electric bZ4X represent just 0.3 per cent of its 142,700 sales this year. EVs are here. Customers just aren't choosing them. There are headlines just about every day from car companies trying to figure out how to handle EVs in Australia. Hyundai says it has done 'a terrible job' convincing customers to make the switch, Honda says there is 'a lot of noise' surrounding EVs while people quietly buy hybrids and Suzuki, plainly, says they 'just don't think the Australian market wants them'. They might be right. We quizzed more than 50,000 readers earlier this year as part of The Great Aussie Debate and found that only 14.9 per cent of people were considering an EV for their next car. That represented a drop from 18.9 per cent in 2023. The government wants us to get behind the wheel of electric cars, even if we don't want to choose them. A new tax is a strange way to try and change that.