AEVA opposes EV road tax, urges universal charging system
bioenergytimes.com, 30 Apr '26
The Australian Electric Vehicle Association (AEVA) has opposed proposals to introduce a road user charge specifically targeting electric vehicles (EVs), describing the concept as inappropriate and advocating for a universal levy applied to all vehicles regardless of fuel type, according to a local daily.
Debate over road user charging in Australia has intensified as fuel excise revenues decline. The current excise, set at AUD 52.6 cents (US$ 37.5 cents) per litre, has traditionally been used to fund transport infrastructure.
However, reduced fuel consumption, driven by increasing EV adoption, has led to calls for reform. A portion of the excise has also been temporarily reduced in response to the global fuel crisis.
While there is general agreement that some form of road user charge will be required, disagreement remains over its structure. Chris Bowen, Federal Energy and Climate Minister, recently downplayed concerns regarding an EV-specific tax, stating that any such system would only be implemented once fully developed.
A study by a research firm found that a road user charge could disproportionately affect working households in outer suburban areas.
AEVA has stated that a charge applied exclusively to EVs-particularly one intended to fund public charging infrastructure-could slow adoption and increase inequality, especially among lower and middle-income households. The association has proposed a universal system based on both vehicle mass and distance travelled, while retaining the fuel excise as a form of pollution tax.
Dr. Chris Jones, part of AEVA's policy working group stated that a flat-rate model would be inequitable, as it would treat lightweight EVs in the same manner as heavier vehicles, such as large SUVs, despite differing impacts on road wear and safety.
He further stated that heavier vehicles contribute more to infrastructure degradation and are associated with higher risks in pedestrian incidents, indicating that vehicle mass should be a central factor in any charging framework.
AEVA President James Pickering stated that EV owners should not bear the short-term costs of infrastructure that benefits all road users.
He stated that public charging networks are expanding through private investment supported by targeted government funding, and that the priority is to ensure reliability and service standards rather than to introduce new levies.
Pickering also called for long-term, coordinated policy development across governments, stating that future investment in charging infrastructure should be sourced from general revenue in partnership with industry, rather than through "one-off" tax measures.