Federal and State Treasurers have agreed that future road user charges should not deter electric vehicle (EV) uptake, providing policy certainty for Australia’s transition to cleaner transport.
The Electric Vehicle Council (EVC) has welcomed the commitment, saying it gives manufacturers, investors and consumers a clear signal that Australia is backing EV growth.
The position aligns Australia with global markets that pair tax reform with support for cleaner transport technologies.
EVC chief executive Julie Delvecchio says the agreement confirms EV adoption remains a national priority across all jurisdictions.
“This position sends a strong, positive signal to manufacturers, investors, and consumers that Australia is backing the growth of electric transport,” Delvecchio says.
“An Australian fleet made up of energy-efficient vehicles powered by low-cost, home-grown energy just makes sense.”
The EVC says it has worked closely with governments on the issue and commends the Treasurers for their leadership on future-focused tax reform.
Conditions for implementation
Delvecchio says any road user charge for cars must be well-designed and properly timed, with specific conditions attached to implementation.
“One charge must apply to all cars and it must only be introduced when 30 per cent of all new car sales are battery electric,” she says.
The threshold would ensure EVs reach sufficient market penetration before additional charges are applied to all vehicles.
Heavy vehicle concerns
The EVC has cautioned against introducing road user charges for electric trucks and heavy vehicles during the early stages of the transition.
“We caution against a road user charge trial that targets electric trucks and other heavy vehicles,” Delvecchio says.
“Such a road user charge at such an early stage of the transition would stall the shift to clean freight, drive up trucking costs, and set back Australia’s emissions goals.”
She says electric trucks already face higher purchase prices compared to diesel alternatives, and adding tax would eliminate the lifetime fuel savings that make them commercially viable.
“More operators are recognising the value of electric heavy vehicles, but the transition is only just beginning,” Delvecchio says.
The EVC says it looks forward to working with Treasurers to ensure all future road user charges support clean, affordable and mainstream EV adoption across Australia.
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