EV Advocates Propose 'Double Tax' on Petrol Cars to Fund Road Use
A proposal suggests petrol and diesel vehicle owners should pay an additional charge on top of existing fuel excise to cover pollution costs and road wear.
An Australian electric vehicle (EV) advocacy group has proposed that drivers of petrol and diesel cars should face a "double tax" to account for the environmental and infrastructure costs associated with their vehicles. The Australian Electric Vehicle Association (AEVA) announced its plan on Wednesday, suggesting a new road user charge that would apply in addition to the existing fuel excise.
Under the current system in Australia, a fuel excise tax adds approximately 51 cents to every liter of petrol and diesel sold. AEVA's proposal, however, calls for a road user charge based on a vehicle's weight and the distance it travels annually. This charge would be calculated at a rate of three cents per kilogram per kilometer, according to a report by Nine's Drive publication.
AEVA's policy convenor, Dr. Chris Jones, stated that the intention is not to grant EVs a "free ride" but to ensure equitable road funding. "If two vehicles weigh the same and are driven the same distance each year, it's only fair that they pay the same road user charge," Dr. Jones said. "But if one of those vehicles burns petrol or diesel, they should pay for the cost of that pollution too."
This proposed "double tax" aims to accurately reflect road wear while simultaneously incentivizing the use of lighter and more fuel-efficient vehicles. For instance, a 2.1-tonne Toyota HiLux SR5 dual-cab traveling 13,000 km annually would incur an estimated road user charge of $823. In contrast, a lighter 2018 Suzuki Swift Sport weighing 970 kg would face a charge of $379 for the same distance.
The idea of a road user charge has garnered attention from government officials. Federal Minister for Climate Change and Energy, Chris Bowen, acknowledged last month that there is broad support for such a charge within the EV industry. "I think a road user charge is something that Australia should be working towards," Bowen stated. "It's got to be done right. It's got to be done carefully, and that includes timing. It's a very big undertaking. It should not be rushed unnecessarily."
Bowen indicated that the proposal was not included in the May 2026 budget because it requires further development and deliberation. He confirmed that discussions on the matter are ongoing between himself and the Treasurer, emphasizing the need for careful consideration before implementation.