Australia doubts EV road tax

Australia’s transport minister has cast doubt on a national road-user tax for electric vehicles, saying a new charge could arrive at the wrong time for adoption. (abc.net.au) Catherine King made the comments on Australian Broadcasting Corporation television on April 12, 2026, after months of debate over whether drivers of battery-powered cars should start paying directly for road use. (abc.net.au) A road-user charge is a per-kilometre fee, usually tracked by odometer readings, meant to replace some revenue governments now collect when drivers buy petrol or diesel. Australia’s fuel-tax system still raises money from combustion-engine vehicles at the pump, while fully electric vehicles largely avoid that payment. (aph.gov.au) The timing matters because electric cars are still a minority purchase in Australia. The Federal Chamber of Automotive Industries said battery electric vehicles accounted for 103,269 sales, or 8.3 per cent of the 1,209,808 new vehicles sold in 2025. (fcai.com.au) Industry data has also shown softer demand at points during the past year. In March 2025, battery electric vehicles were 4.9 per cent of sales reported to the chamber, down from 9.5 per cent a year earlier, though the group noted that two non-member electric brands had not yet publicly reported that month. (fcai.com.au) Australia has already seen one version of the policy fail in court. Victoria’s zero and low emission vehicle charge stopped after the High Court’s October 18, 2023 decision, and VicRoads later refunded eligible motorists in full. (vicroads.vic.gov.au) That ruling did not end the revenue problem. As more drivers shift away from petrol and diesel, governments still face the question of how to fund roads when fuel excise brings in less from each kilometre driven. (aph.gov.au) The Albanese government has been pushing a broader electric-vehicle transition through its National Electric Vehicle Strategy, which went through public consultation with more than 500 submissions representing more than 2,150 individuals and organisations. (consult.dcceew.gov.au) King’s comments leave Canberra balancing two goals that pull in opposite directions: keeping electric vehicles attractive to buyers in 2026, and finding a replacement for fuel-based road funding later on. (abc.net.au)