EVs present generational reform opportunity for treasurers

29 November 2019

Australia has a once in a generation opportunity to deliver major reform and a fairer road funding system by introducing a distance-based charge on electric vehicles, according to a new report released today by Infrastructure Partnerships Australia.

“Treasurers around the country are looking for ways to boost the productivity of their economies, and they need look no further than levelling the playing field on how we pay for roads,” said Infrastructure Partnerships Australia, Chief Executive Adrian Dwyer. “

Right now, a person driving a petrol car is paying fuel excise at the pump, while electric vehicle drivers pay nothing to drive on the roads.

“Applying a simple distance-based charge to electric vehicles will ensure every motorist makes a fair and sustainable contribution to the use of the roads and will help secure a vital stream of transport funding for generations to come.

“While a shift to electric vehicles could be great for the environment, we still need to make sure we can fund transport services to help people spend less time in their cars.

“That is why Infrastructure Partnerships Australia is calling for a road user charge on electric vehicles.

“Governments have a brief window of opportunity to implement this whole of network reform before there is an electric car in every driveway, but they have to move quickly,” Mr Dwyer said.

Electric vehicle road user charging could be initiated by the Federal Government or led by state and territory governments. Each of these options has potential advantages and challenges.

“Applying a road user charge on electric vehicles is a smart, future-focused decision because as more electric vehicles take to the roads, there will be less money to pay for those roads,” Mr Dwyer said.

“Any new charging system need not detract from electric vehicle uptake. In fact, a road user charge can provide certainty to prospective electric vehicle owners about future costs and be set at a rate equivalent to fuel excise.

“Reform of Australia’s transport networks can unlock major productivity benefits, but unless we act now to update our road funding system, Australia is going to be stuck in the slow lane,” Mr Dwyer said.

 Read the Infrastructure Partnerships Australia report here, https://infrastructure.org.au/wp-content/uploads/2019/11/Road-User-Charging-for-Electric-vehicles.pdf.

 Infrastructure Partnerships Australia is the nation’s leading infrastructure think tank, providing independent policy research focused on excellence in social and economic infrastructure.




Source:  Infrastructure Partnership Australia - www.infrastructure.org.au

Contact:  N/A

External Links:  https://infrastructure.org.au/wp-content/uploads/2019/11/Road-User-Charging-for-Electric-vehicles.pdf

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