Victoria to tax electric and plug-in hybrid vehicles from 2021

By Rob Margeit 22/11/2020 
https://www.caradvice.com.au/903101/victoria-to-tax-electric-and-plug-in-hybrid-vehicles-from-2021/


Victoria will follow South Australia with a per-kilometre usage fee for pure 
electric and plug-in hybrid cars.

Dan Andrews’ Labor Government confirmed it would charge owners of electric and 
plug-in hybrid vehicles a usage fee from July 2021.

Victorian Treasurer Tim Pallas confirmed the per-kilometre-usage-fee on 
Saturday afternoon.

Under the new laws, full electric vehicles would be charged 2.5 cents per 
kilometre travelled while plug-in hybrid vehicles would face a usage tax of 2.0 
cents per kilometre travelled.

Using the average annual motor vehicle distance travelled of 15,000km (based on 
Australian Census data) that would mean electric cars would pay an additional 
$375 each year, while plug-in hybrids would face an additional $300 fee.

According to its data, the Victorian government anticipates raising around $30 
million annually via the electric vehicle tax, although Mr Pallas said owners 
of such vehicles would continue to pay less to use the state’s roads than 
drivers of vehicles fitted with petrol or diesel engines.

“Even after the introduction of this charge for usage of our road network, 
people driving electric vehicles will pay between 40 and 45 per cent less than 
motorists driving in a car fuelled by petrol or diesel,” said Mr Pallas.

The new charge has been brought in to offset the loss of revenue collected from 
the sale of petrol and diesel.

Currently, 42.3 cents from every litre of petrol and diesel sold at the bowser 
goes to the Federal Government. A portion of that – between 40 and 50 per cent 
in recent years – goes towards national transport infrastructure. The balance 
of fuel excise goes into consolidated revenue.

Electric Vehicle Council CEO Behyad Jafari was critical of this latest tax on 
electric vehicles, stating it was “built on a myth”.

“Fuel excise income is not quarantined for roads and will drop in the long 
run,” said Mr Jafari. “But as we shift away from petrol and diesel, diseases 
linked to air pollution and other costs associated with climate change will 
also decrease.

“Why would you tax a technology that will drive profound savings and economic 
benefit? Now is the time to be encouraging EVs, not holding them back with a 
new tax.”

Mr Jafari added the new charges could dis-incentivise buyers looking to make 
the switch to electric mobility.

The Victorian Government’s move to apply a usage charge on electric and plug-in 
hybrid vehicles comes a week after the South Australian government confirmed it 
would introduce an electric vehicle levy from 2021.

It also comes in the same week the Australian Capital Territory government 
promised to introduce free registration and interest-free loans for new 
electric-car buyers.


_______________________________________________
Link mailing list
Link@mailman.anu.edu.au
http://mailman.anu.edu.au/mailman/listinfo/link

Reply via email to