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EV Tax

16 July 2021

All road users should pay

How would you feel if you knew your neighbour paid lower council rates than you because they grew vegetables, or if a work colleague paid less tax than you because they cycled to work?

Not happy? I thought so.

But what if a similar scenario existed for motorists, whereby you paid for the build and upkeep of the roads you drive on and some other road users paid a lot less, maybe nothing?

Some bodies want the owners of internal combustion-powered vehicles to do just that – pay for our roads, while those who choose electric vehicles escape paying their fair share.

The Victorian State Government has steered the right course on this debate. 

Its contentious Zero and Low Emission Vehicle Distance-based Charge Bill 2021 passed the Victorian Legislative Council recently, and a new road user charge came into play from 1 July.

Now, 2.5 cents per kilometre will be charged to owners of Zero Emissions Vehicles (ZEV) – which includes hydrogen, although few hydrogen passenger vehicles are commercially available in this country – and two cents for plug-in hybrid vehicles.

Some industry groups criticised the Bill, claiming it would discourage the uptake of low or no emissions vehicles. 

VACC contends that it’s the fairest way to improve and maintain the state’s road network – if a motorist uses the roads, they should help pay for the build and upkeep.

Let’s get one thing straight – the Victorian Government’s electric vehicle road user charge is not about the environment or being a gas guzzler or a greenie.

It’s about roads. That’s all.


Words: VACC CEO, Geoff Gwilym. As featured in the Herald Sun 16 July 2021.

Share your thoughts! E: ceo@vacc.com.au

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