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Victoria follows South Australia and imposes electric car road tax

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Re: Victoria follows South Australia and imposes electric car road tax

#2
Governments that have fuel excise taxes will do anything to keep their income flowing, including sabotaging EVs and public transport. This is why I would always snicker when reading Tom Friedman's harping on a fuel excise tax: https://www.nytimes.com/2009/09/20/opinion/20friedman.html

Every new tax always leads to increased spending then to more tax ad nauseum.

Re: Victoria follows South Australia and imposes electric car road tax

#4
In Australia most already fall under the Federal “Luxury Car Tax”[1]. Cars with a luxury car tax (LCT) value over the LCT threshold attract an LCT rate of 33%.

A Tesla model 3 starts at $AUD 66,900 in Australia.

https://www.ato.gov.au/rates/luxury-car-tax-rate-and-thresho...

Re: Victoria follows South Australia and imposes electric car road tax

#6
I'm not really sure there's a good answer here.

Fuel tax is 43 cents a litre. Australian cars right now avg about 13.1 litres per 100km. So you're looking at ~$5.6 per 100km for fuel tax.

This tax is adding $2.5 tax per 100km for electric.

Right now, EVs are absolutely creating an regressive tax situation with regards to fuel. Those who can afford to buy newer, efficient cars can usually save money on tax over those who can't. For electric, it was worse - because they do tend to be more expensive to purchase up front, and they paid no fuel tax at all.

And frankly, infrastructure is expensive, and governments need to plan on continuing to maintain it.

That said - I think the only real answer here is a more thorough overhaul of how you tax road usage. Perhaps it's time to ditch the fuel excise tax entirely, and tax all drivers based on (vehicle weight * kms driven * some constant).

Encourage drivers to move to lighter vehicles which cause less wear and tear on the road, and drop the disparity between fuel and electric. They both use the same tires.

Re: Victoria follows South Australia and imposes electric car road tax

#7
In many countries, fuel taxes don't go into general revenues, they are ring-fenced and allocated for road maintenance. Even if they aren't, a reduction in revenue must be offset.

The fact that they aren't charged taxes for use of the roads was the incentive. This is removing it in recognition that electric vehicles are now enough of a percentage of the fleet to affect tax revenue.

New Zealand does the same, with diesel and commercial vehicles already paying "road user charges" (RUC) to fund road maintenance. Petrol (gasoline) vehicles pay this tax at the pump.

EVs are exempt from the RUC until they represent 2% of the fleet.

https://www.transport.govt.nz/area-of-interest/environment-a...

https://www.stuff.co.nz/motoring/107372241/ev-drivers-are-bl...

Re: Victoria follows South Australia and imposes electric car road tax

#8

I'm not really sure there's a good answer here. Fuel tax is 43 cents a litre. Australian cars right now avg about 13.1 litres per 100km. So you're looking at ~$5.6 per 100km for fuel tax. This tax is adding $2.5 tax per 100km for electric. Right now, EVs are absolutely creating an regressive tax situation with regards to fuel. Those who can afford to buy newer, efficient cars can usually save money on tax over those…

> The EV industry accepts that a road user charge is inevitable as the car fleets transition to electric, but argue it should be introduced fairly and evenly. It points out the petrol excise goes into general revenue rather than road funding, and EV owners pay more tax than petrol car owners due to higher taxes from GST, stamp duty, and luxury car tax.

I think it's ok for one particular tax to be regressive if the general taxation scheme is not.

Re: Victoria follows South Australia and imposes electric car road tax

#10
post #9

I don't understand the opposition to this. These vehicles continue to use roads but don't pay any taxes that would help maintain roads if they were gas or diesel cars. How is that fair?

Trucks do...wait for it...1,400x more damage to roads than standard passenger vehicles do.
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