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Australian officials consider road-user charge for all motorists amid EV surge

The Australian government is planning a road-user levy that would apply to petrol, diesel and electric vehicles, according to industry input.

Australia is drafting a road-user tax that would be collected from all passenger-vehicle drivers, including those using petrol, diesel and electric cars. Scott Maynard, managing director of Polestar Australia, explained that the brand is collaborating with government officials to ensure the levy is applied uniformly rather than targeting only EV owners. The existing fuel excise of 53.7 cents per litre is adjusted biannually based on CPI, and officials are considering a review of that rate alongside the new charge.

Federal Minister for Climate Change and Energy Chris Bowen affirmed the need for a carefully timed rollout, emphasizing that the scheme should not be rushed. Meanwhile, New South Wales intends to introduce its own kilometre-based fee for electric and plug-in hybrid vehicles in July 2027, even though the High Court struck down a similar Victorian tax in 2023, ruling that only the federal parliament can impose customs and excise duties.

Why it matters

A universal road-user charge could reshape fuel taxes and affect the cost of driving for all Australians.

In this story

road-user chargefuel exciseelectric vehiclespolicy proposaltax reformScott MaynardChris Bowen
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