Will EV travel tax effect Australian uptake?

We often hear about the timid and slow uptake of electric vehicles within Australia and policy changes to taxes on electric vehicles may further hinder the progress.

The Victorian government introduced a tax on electric vehicle drivers, charging then between 2-2.5 cents for every kilometre they drive.

Drivers of electric vehicles are required to submit annual odometer readings to state authorities from which an annual charge is calculated. The purpose of this charge aims to pay for local infrastructure but is it too soon?

“It is premature to be introducing additional taxes on electric vehicles when the local market is still in the early stages of development,” head of policy at the Electric Vehicle Council, Jake Whitehead said.

Despite criticism towards the initiative, other states are ready to follow suit as New South Wales and South Australia passed legislation to begin charging drivers once electric vehicles make up 30% of new vehicle sales or by 2027.

The Victorian government explained the tax is as a way of ensuring electric vehicle drivers are contributing towards road use when they are not paying fuel excise.

Nick Foa, head of transport services in Victoria’s Department of Transport describes the tax as a fair and sustainable revenue base to fund investment in the road network and its infrastructure.