SA govt to introduce road user tax for electric vehicles

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mjcrow
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SA govt to introduce road user tax for electric vehicles

Post by mjcrow »

South Australian EV owners will be charged a road user tax from next year.
https://www.afr.com/policy/economy/elec ... 109-p56czk
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Re: SA govt to introduce road user tax for electric vehicles

Post by jonescg »

I don't know what they have in mind, but given there's ~1000 EVs in SA, and they drive an average of 14,000 km per year, and they're talking about $1 million in the first year, that sounds like 7c/km, which is a hell of a lot! Easily twice what it should be.

Secondly, why aren't petrol and diesel cars charged a road user fee? They use the road too.
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Re: SA govt to introduce road user tax for electric vehicles

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It could well be cheaper to drive my hybrid than my ev, and there is no link between the revenue raised from petrol tax and funding for roads, it all goes to general revenue.
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Re: SA govt to introduce road user tax for electric vehicles

Post by Chuq »

Quick check, this recent news story - https://www.drive.com.au/news/the-austr ... nts-124474 - suggests 1700 EVs in South Australia. Not sure how accurate it is but the Tassie number is about 2/3 of the actual number, so SA could be as high as ~2500.
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Re: SA govt to introduce road user tax for electric vehicles

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From the budget statement 2020-21 https://statebudget.sa.gov.au/budget-do ... tement.pdf

p.10. In addition to the measures announced in the budget, the government is intending to introduce a road user
charge for electric and zero emission vehicles. The user charge is expected to commence from 1 July 2021
subject to the completion of required system administration charges and the timing of the passage of
legislation through Parliament. The charge will include a fixed component (similar to current registration
charging) and a variable charge based on distance travelled. Electric vehicles do not attract fuel excise and
therefore make a lower contribution to the cost of maintaining our road network. The proposed road user
charge will address this inequity, ensuring that all vehicles make a contribution to the maintenance of our road
network.

p.37. Collections from the proposed user charge are expected to be very low across the forward estimates while
there are still very few electric and zero emission vehicles in South Australia. It is estimated it could generate
less than $1 million per annum in additional revenue across the forward estimates. No revenue from the
proposed user charge has been included in the budget estimates at this time, noting the details of the scheme
are subject to finalisation.


Then from the budget measurement statement https://statebudget.sa.gov.au/budget-do ... 21_bms.pdf

p.59. South Australia's Electric Vehicle Action Plan
This initiative provides $18.3 million over four years to deliver the Electric Vehicle Action Plan which will
position South Australia as a national leader in electric vehicle uptake
and rapid charging capability by 2025.
The action plan will establish a statewide electric vehicle charging network to increase the uptake of electric
vehicles, accelerate smart charging and vehicle-to-grid charging trials, transition the state government’s fleet to
plug-in electric vehicle models over time, and encourage greater uptake in the non-government fleets amongst
other actions.


Surely an EV tax is not the best way to achieve "South Australia as a national leader in electric vehicle uptake". How will the government know how many kilometers an EV has travelled, we don't have annual inspections in SA, will they introduce annual inspections for EV owners only? Will they trust us to self report?

Will Plug-in hybrid owners have to pay for the kilometers they drive in EV only mode, if not then it would be absolute stupidity to by a pure ev, just buy a plug-in hybrid and never put petrol in it, and never pay the tax! Of course this means when you try to sell your pure EV, it will sell for less than a hybrid version of the same vehicle as the hybrid will not be subjected to the tax.

The Ernst & Young report comissioned by The Electric Vehicle Council https://electricvehiclecouncil.com.au/r ... rue-value/ "Uncovering the hidden costs and benefits from Electric Vehicles" showed that the "The average net benefit to government and society of an EV replacing an ICEV was $8,763. So perhaps all of us EV owners should instead send the Government an invoice.

And as someone who also rides a bicycle, then I suppose the next step in this misguided logic " Electric vehicles do not attract fuel excise and therefore make a lower contribution to the cost of maintaining our road network", it's only a matter of time before they hit me up here as well!
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Re: SA govt to introduce road user tax for electric vehicles

Post by brunohill »

If they do it in Victoria I think they had better seal the roads around here first or at least grade out the corrugations and pot holes, or will I subsidize ICE vehicles driving on freeways. It is the local councils around here that maintain the roads and I pay my council rates. Maybe we should get our local councils to try and claim their share of the fuel excise for their share of km of road.
Perhaps they could get their lost revenue from the projected savings from the Medicare budget or climate change mitigation costs.
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Re: SA govt to introduce road user tax for electric vehicles

Post by sleeperpservice »

I don't have an objection to paying road tax but it does need to be done fairly and given the dearth of incentives rushing in a EV tax is backwards. It doesn't exactly gel with the big EV announcements for little benefit.

Current fuel excise on a passenger car is 42.3c a litre at the pump. Given I have not filled up 890L to travel 8600km my old car would have consumed this has meant I have not paid $384 in road taxes. For a full year that would be $625 or about 5c a km.

Average consumption in Australia is 10.8L/100km (and going up) so anything above 5c per km would be a rort and it should be akin to what a more fuel efficient car would pay.

Not sure how it would be counted barring having your ODO read.

Also cars are no where near as destructive on road surfaces as HGVs which can claim tax credits for use on public roads.
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Re: SA govt to introduce road user tax for electric vehicles

Post by reecho »

Chuq wrote: Tue, 10 Nov 2020, 15:12 Quick check, this recent news story - https://www.drive.com.au/news/the-austr ... nts-124474 - suggests 1700 EVs in South Australia. Not sure how accurate it is but the Tassie number is about 2/3 of the actual number, so SA could be as high as ~2500.
So they are including PHEV's in this as well?
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Re: SA govt to introduce road user tax for electric vehicles

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"for electric and zero emission vehicles."

so there going bill bikes, rollaskets, wheelchairs, prams?
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Re: SA govt to introduce road user tax for electric vehicles

Post by jonescg »

They must be. 2500 plug-ins is about right.
That would make it about 4c/km then, which is again, at the high end of the scale. Till we get details it's all a bit surprising.
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Re: SA govt to introduce road user tax for electric vehicles

Post by Chuq »

It looks like Labor, Greens and the crossbench will be voting this one down. https://indaily.com.au/news/2020/11/12/ ... c-car-tax/
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Re: SA govt to introduce road user tax for electric vehicles

Post by necrogt4 »

So this will generate less than $1,000,000 in revenue. How much is it going to cost the tax payers for it to be put in place? And then when the next government comes along and this madness is scrapped for something a little more forward thinking? I don't see how this benefits anyone...
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