The federal government is set to overhaul road user charging rules to cover electric vehicles as the sales of EVs continue to grow in Australia.
New data from the Australian Automobile Association showed a record number of EVs were sold in the June quarter as they accounted for almost one in 10 new car sales.
Anthony Albanese said that the new rules would be worked through this term of parliament.
“What I believe is that we need money to ensure that roads are adequate, and that is a long-held belief,” Albanese said.
“What we need to do is to work those issues through and to come up with a realistic plan that can be implemented. And we’ll await those discussions.”
This follows the federal budget being affected by declining fuel excise revenue in the past few years as people switch to battery-powered vehicles, avoiding a 51.6 cents per litre tax on petrol and diesel used for road repairs.
However, a high court ruling in 2023 delayed taxing on drivers after finding the Victorian Government’s attempt to impose a tax on EVs unconstitutional, as only the federal government had the power to impose excise taxes on consumption.
Federal and state treasurers have since been discussing ways to tax EV drivers while maintaining budget revenue.
In an interview with ABC earlier this week, Federal Environment Minister Murray Watt was asked about the potential of EV taxes being imposed and while he didn’t reveal details, he said it was no secret the government was working on it.
"I wouldn't want to jump ahead of any sort of decision-making with that," he told ABC News Breakfast this morning.
"It's no secret that we've said previously we'll work with the states and territories on this matter."
