Latest news with #lightvehicles
The Australian
4 days ago
- Automotive
- The Australian
New road user tax: How much Aussie EV owners could soon pay per kilometre
The Federal Government is advancing plans for electric vehicle owners to pay a new 'road-user charge', but it may not stop at EV drivers. In Australia, drivers currently pay a fuel excise of 51.6 cents per litre every time they fill up. According to the Government, that money goes towards building and maintaining the nation's roads. But EV drivers currently pay nothing. The Productivity Commission has warned that Australia's $12 billion a year fuel excise is in 'terminal decline' as more drivers switch to low-and zero-emission cars. The proposed solution, currently being discussed and advanced by Treasurer Jim Chalmers, is a distance-based charge for EV drivers, but industry experts say it could be rolled out more broadly to cover all light vehicles, like in New Zealand. If that happens, it could mean all motorists pay a set fee for every kilometre they travel, regardless of whether they drive a diesel ute, petrol SUV, hybrid small hatchback or electric sedan. MORE: New road charge coming for EV drivers The Productivity Commission says all road users should contribute to the cost of infrastructure. (AAP Image / Julian Andrews). What is the road-user charge? Currently, Australian drivers of petrol and diesel pay a fuel excise – a tax of 51.6c per litre – every time they fill up. This tax money is used to build and maintain roads. Electric vehicle (EV) owners currently pay nothing, meaning as more Australians switch to EVs, the government's road funding pool is shrinking. A road-user charge (RUC) would change that by making EV drivers pay for each kilometre they travel. The aim is to ensure all road users contribute to the upkeep of the network, regardless of what powertrain they drive. In New Zealand, the approach is going even further. From 2027, all light vehicles – petrol, diesel, hybrids, and electric will be charged based on distance travelled and vehicle weight. This national approach means everyone pays for the exact road use they generate, but it also means some are paying more than others. If the same road-user charge is applied to all light vehicles in Australia, it's understood that would be instead of paying fuel excise, not on top of it. However, this is a big shift and has not been discussed or committed to yet. MORE: EV tax 'makes no sense' Petrol and diesel drivers currently pay a 51.6c per litre excise to fund road maintenance. Picture: NCA NewsWire / Andrew Henshaw How would it work? Victoria implemented a road user charge for electric and plug-in hybrid vehicles that later failed a court challenge, leading to millions of dollars in refunds. It worked like this: – Flat rate for EVS of approximately 2.8c/km – Flat rate for Plug-in hybrids of approximately 2.3c/km – Distance measured by odometer photos or an app – Funds directed to road maintenance and construction There have been discussions about exemptions or rebates for regional motorists, who often drive far greater distances, and others argue the charge should eventually apply to all vehicles, not just EVs. New Zealand's Road User Charge (RUC) framework does not offer specific exemptions or rebates for regional motorists based on travel distance. However, there are exemptions for certain vehicle types, such as: – Electric vehicles over 3.5 tonnes (heavy EVs), remain exempt until 1 July 2027. – Light electric vehicles under 1,000kg remain exempt. – Vehicles unsuitable for public roads or used almost exclusively off-road can apply for exemptions. MORE: China unveils plan to take on Tesla in Australia From 2027 the New Zealand model will charge all light vehicles based on distance travelled and weight, not just electric cars. Picture: Jonathan Ng When could it happen? Prime Minister Anthony Albanese has ruled out new taxes this term, so not before 2027. Treasurer Jim Chalmers has signalled it as a 'second term' reform, after further consultation with states and industry. If the RUC is applied to EVs only Using Victoria's scrapped 2.8c/km rate: City driver – 12,000km/year – EV: $336 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise Regional driver (or high-mileage drivers) – 30,000km/year – EV: $840 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise If the RUC is applied to EVs only, then EV owners, especially high-mileage or regional drivers, will be impacted. Outer-suburban and regional drivers typically driver far more than inner city drivers, not because they want to, but because they have to. According to data buyers searching for home up to an hour from the CBD have dramatically more choice, with as much as eight times the number of houses available compared to a 30-minute radius. Electric vehicle owners could soon face a per-kilometre tax under new federal plans. Picture: Mark Bean What if it expands to all vehicles like New Zealand? If Australia adopts a national RUC for light commercial vehicles, like New Zealand, the impact on your wallet would depend heavily on the type of vehicle you drive and how far you travel each year. For example, a large ute or SUV such as a Toyota HiLux, Ford Ranger or Toyota LandCruiser Prado uses approximately 10L/100km, which means drivers would pay roughly $336 a year under a 2.8c/km charge if they drive the national average of 12,000km. That's about $283.20 less than the $619.20 you'd currently pay in fuel excise, and the savings would be even bigger for high-mileage regional drivers. High-mileage vehicles like utes could face high costs under distance-based road tax. Picture: Supplied If the RUC is applied to everyone, similar to what New Zealand is implementing in 2027, then heavy/less efficient vehicles like petrol or diesel utes and SUVs will come out ahead. While EVs and very efficient hybrids will pay more than under fuel excise. However, owning an EV and paying per-km RUC will still be cheaper than what ICE drivers pay via fuel excise. Danielle Collis Journalist and Reporter Danielle's background spans print, radio and television, she has contributed to outlets such as The Age, ABC, Channel Nine and many more. For more than four years, Danielle has worked as Liz Hayes' producer and investigative journalist on her show 'Under Investigation', covering everything from corporate scandals to Australia's most baffling crime cases. Danielle's covered a range of topics from breaking news, politics, lifestyle and now motoring. Danielle Collis
News.com.au
5 days ago
- Automotive
- News.com.au
Petrol, diesel, hybrid or EV: What new road user charge could mean for you
The Federal Government is advancing plans for electric vehicle owners to pay a new 'road-user charge', but it may not stop at EV drivers. In Australia, drivers currently pay a fuel excise of 51.6 cents per litre every time they fill up. According to the Government, that money goes towards building and maintaining the nation's roads. But EV drivers currently pay nothing. The Productivity Commission has warned that Australia's $12 billion a year fuel excise is in 'terminal decline' as more drivers switch to low-and zero-emission cars. The proposed solution, currently being discussed and advanced by Treasurer Jim Chalmers, is a distance-based charge for EV drivers, but industry experts say it could be rolled out more broadly to cover all light vehicles, like in New Zealand. If that happens, it could mean all motorists pay a set fee for every kilometre they travel, regardless of whether they drive a diesel ute, petrol SUV, hybrid small hatchback or electric sedan. What is the road-user charge? Currently, Australian drivers of petrol and diesel pay a fuel excise – a tax of 51.6c per litre – every time they fill up. This tax money is used to build and maintain roads. Electric vehicle (EV) owners currently pay nothing, meaning as more Australians switch to EVs, the government's road funding pool is shrinking. A road-user charge (RUC) would change that by making EV drivers pay for each kilometre they travel. The aim is to ensure all road users contribute to the upkeep of the network, regardless of what powertrain they drive. In New Zealand, the approach is going even further. From 2027, all light vehicles – petrol, diesel, hybrids, and electric will be charged based on distance travelled and vehicle weight. This national approach means everyone pays for the exact road use they generate, but it also means some are paying more than others. If the same road-user charge is applied to all light vehicles in Australia, it's understood that would be instead of paying fuel excise, not on top of it. However, this is a big shift and has not been discussed or committed to yet. How would it work? Victoria implemented a road user charge for electric and plug-in hybrid vehicles that later failed a court challenge, leading to millions of dollars in refunds. It worked like this: – Flat rate for EVS of approximately 2.8c/km – Flat rate for Plug-in hybrids of approximately 2.3c/km – Distance measured by odometer photos or an app – Funds directed to road maintenance and construction There have been discussions about exemptions or rebates for regional motorists, who often drive far greater distances, and others argue the charge should eventually apply to all vehicles, not just EVs. New Zealand's Road User Charge (RUC) framework does not offer specific exemptions or rebates for regional motorists based on travel distance. However, there are exemptions for certain vehicle types, such as: – Electric vehicles over 3.5 tonnes (heavy EVs), remain exempt until 1 July 2027. – Light electric vehicles under 1,000kg remain exempt. – Vehicles unsuitable for public roads or used almost exclusively off-road can apply for exemptions. When could it happen? Prime Minister Anthony Albanese has ruled out new taxes this term, so not before 2027. Treasurer Jim Chalmers has signalled it as a 'second term' reform, after further consultation with states and industry. If the RUC is applied to EVs only Using Victoria's scrapped 2.8c/km rate: City driver – 12,000km/year – EV: $336 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise Regional driver (or high-mileage drivers) – 30,000km/year – EV: $840 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise If the RUC is applied to EVs only, then EV owners, especially high-mileage or regional drivers, will be impacted. Outer-suburban and regional drivers typically driver far more than inner city drivers, not because they want to, but because they have to. According to data buyers searching for home up to an hour from the CBD have dramatically more choice, with as much as eight times the number of houses available compared to a 30-minute radius. What if it expands to all vehicles like New Zealand? If Australia adopts a national RUC for light commercial vehicles, like New Zealand, the impact on your wallet would depend heavily on the type of vehicle you drive and how far you travel each year. For example, a large ute or SUV such as a Toyota HiLux, Ford Ranger or Toyota LandCruiser Prado uses approximately 10L/100km, which means drivers would pay roughly $336 a year under a 2.8c/km charge if they drive the national average of 12,000km. That's about $283.20 less than the $619.20 you'd currently pay in fuel excise, and the savings would be even bigger for high-mileage regional drivers. If the RUC is applied to everyone, similar to what New Zealand is implementing in 2027, then heavy/less efficient vehicles like petrol or diesel utes and SUVs will come out ahead. While EVs and very efficient hybrids will pay more than under fuel excise.
Yahoo
07-07-2025
- Automotive
- Yahoo
Government subsidies drive China's vehicle market up
China's loght vehicle (LV) market continued its strong performance in May 2025, with sales rising by 10% YoY to approximately 2.1 million units. The increase was primarily driven by robust demand for PVs (passenge vehicles or cars), which expanded by 12% YoY to 1.9 million units, representing 88% of total LV sales for the month. Government stimulus measures played a crucial role in supporting the market's performance, particularly the extended vehicle trade-in and scrappage incentive programs. These policies significantly boosted domestic demand, with NEVs being notable beneficiaries. In contrast, LCV sales suffered a moderate 9% YoY decline. On a YTD basis, LV sales in January-May grew by 12% compared to the same period in 2024. The national subsidy program that encourages consumers to replace older vehicles with newer models remained a key driver of spending. The seasonally adjusted annualized selling rate for May stood at 27.9 million units, a 5% decrease from April's figure but still a historically strong level. The Chinese government has been instrumental in accelerating the growth of the LV market through a comprehensive suite of supportive policies. The extension of vehicle trade-in and scrappage incentive programs—now valid until the end of 2025—has significantly boosted domestic demand, particularly for NEVs. These incentives, which include additional subsidies of up to CNY5,000 ($698) for NEV purchases compared to traditional fuel vehicles, have effectively lowered ownership costs and encouraged consumer adoption. The rapid expansion of China's e-commerce sector has profoundly impacted the LV market, particularly in the Commercial Vehicle segment. The surge in online retail and last-mile logistics has heightened demand for LCVs, which are now a critical component of modern supply chains. However, despite this structural demand, LCV sales in May saw a modest 9% YoY decline, reflecting broader macroeconomic pressures and a shift in business investment patterns. In May 2025, total LV production reached 2.6 million units, marking an 11% YoY increase, though only a 1% MoM rise. YTD production for 2025 stands at 12.3 million units, up by 13% compared to the same period last year. PVs, which account for 90% of total LV output, continued their strong performance with May production hitting 2.3 million units (+12% YoY). In contrast, LCV production grew marginally by 0.5% YoY to 263k units, underscoring the segment's slower recovery amid shifting logistical demands and policy focus on NEVs. In May 2025, China's LV exports continued their upward trend and reached 519k units—a 15% YoY increase. This figure made up 20% of total LV production, underscoring the growing importance of overseas markets. The PV segment remained the key growth driver, with shipments rising by 17% YoY to 467k units. In contrast, CV exports saw a slight 0.5% YoY decline to 53k units, reflecting subdued global demand for logistics and transport equipment. On a cumulative basis, China's auto exports totaled 2.1 million units in the first five months of 2025, up by 6% YoY. The recent interim agreement in US-China trade negotiations—which reduced mutual tariffs until August 10, 2025—has provided temporary relief to exporters. However, the long-term outlook remains uncertain as negotiations continue, with potential policy shifts posing risks to trade flows. The export market has become a critical pillar of China's LV industry, contributing significantly to production volumes and manufacturer revenues. While current growth trends are positive, the sector faces headwinds from geopolitical tensions, evolving trade policies, and competitive pressures in key markets. Automakers are closely monitoring developments, as any further changes in tariffs or trade rules could materially impact the export sector in the second half of 2025 and beyond. Based on stronger-than-expected market performances in recent months, we have revised our 2025full-year forecast upward by approximately 200k units. This adjustment reflects the resilience of both domestic demand and export markets, which have demonstrated limited sensitivity to US tariff policies thus far. Domestically, market growth continues to be primarily policy-driven, with promotional incentives and trade-in schemes remaining crucial demand drivers. However, the export sector faces a more nuanced risk profile. While Russia currently serves as the largest single export destination, potential market contraction there would require alternative demand sources to compensate. The industry's ability to diversify exports to other emerging markets—particularly in Southeast Asia, the Middle East, and Latin America—will be critical in maintaining overseas growth momentum. Moving forward, we remain cautiously optimistic in terms of the outlook. The domestic market's policy-supported foundation appears stable in the near term, though export strength will depend on both geopolitical developments and manufacturers' capacity to adapt to shifting global trade patterns. Continued monitoring of Russian market dynamics and trade policy evolution remains essential for risk assessment. This article was first published on GlobalData's dedicated research platform, the . "Government subsidies drive China's vehicle market up – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. 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