Reforms to make electric vehicle users pay their fair share of road maintenance costs should not discourage drivers transitioning away from petrol cars, the treasurer says.
Jim Chalmers held talks with his state and territory counterparts at a meeting of treasurers on Friday, where a proposal to implement a road user charge for EV drivers was on the agenda.
In a joint statement, Dr Chalmers said all governments needed to work together to introduce changes as the number of EVs on the road rose.
“Reforms should be designed to not deter the continued take-up of electric vehicles,” he said.
“The reforms to the treatment of electric vehicles will ensure more equitable treatment across vehicle types and provide certainty to support investment.
“The design of reforms should be as simple as possible and minimise administration and compliance burden.”
Road user charges had been floated as an area of reform because fewer drivers were paying an excise on fuel, which was then designated to road maintenance.
Dr Chalmers had previously ruled out applying a road user charge to all motorists because that would mean drivers of petrol and diesel cars would be double taxed.
But the final form of what a road user charge would look like was not agreed to at the meeting of treasurers.
“The design of reforms should be as simple as possible and minimise administration and compliance burden,” Dr Chalmers said.
“We will ensure any changes are phased to enable the productivity, climate and consumer benefits of increasing electric vehicle uptake over the coming years.”
A road user charge was discussed at the federal government’s economic roundtable in Canberra in August.
A national model for such a charge has been on the cards after a 2023 High Court ruling found a state-based levy unconstitutional.
NSW Treasurer Daniel Mookhey said Friday’s discussion was a “constructive meeting”.
“It’s important that everybody who uses our roads are making a contribution to their upkeep and their maintenance,” he told ABC News on Friday.
“The states are forward-leaning on this and are eager to assist the Commonwealth and developing this reform and rolling it out as soon as we can.
“Nobody wants to discourage people from using electric vehicles. We think we can get the balance right.”
Opposition transport spokeswoman Bridget McKenzie said an equitable system was needed for drivers of EVs and other cars that ran on fuel.
“The sooner all road users contribute to fixing our roads, the safer our roads will be,” she said.
“Mr Chalmers’ proposed tax should not just be to fill Commonwealth coffers or fund charging infrastructure, which the foreign EV manufacturers should be helping roll out.”
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