Leaked report shows state treasurers considered GPS tracking to collect tax on electric cars

A leaked report found that GPS tracking of electric vehicles was considered by state treasurers as a means of taxing their drivers.

State treasurers considered GPS tracking as a way to collect tax on electric vehicles, a leaked report has revealed.

The report also showed the treasurers were warned a tax on electric vehicles would slow down the take-up and could raise constitutional issues.

The Implementation Issues Paper, prepared by Victoria’s Treasury about a road-use charge for zero and low-emission vehicles, has laid bare the challenges in introducing such a tax.

However, South Australian Treasurer Rob Lucas said that the policy had found support across all political persuasions.

The report, obtained by think-tank The Australia Institute, showed a new electric vehicle (EV) tax would likely “discourage EV uptake” and “face strong opposition from industry and environmental stakeholders”.

The report found:

LIVE GPS tracking of all electric vehicles was being considered as a way to monitor and charge for a variable, per kilometre usage fee.

STATES were told to consider the need for legal advice around potential constitutionality issues relating to the tax.

DESIGNING and implementing an EV tax was likely to be “resource intensive” and EV owners living near state and territory borders might be unfairly disadvantaged.

The report showed a new electric vehicle tax would likely “discourage EV uptake” and “face strong opposition from industry and environmental stakeholders”.

The Australia Institute’s Climate & Energy Program director, Richie Merzian, said the document showed there were real risks associated with the introduction of a new tax on electric vehicles.

“EVs are a cleaner, quieter and safer transport alternative,” Mr Merzian said.

“Now is not the time to put a great big, new tax on this emerging industry.

“There is an argument to be made for a broad and comprehensive charge that accounts for the pollution being emitted by every vehicle on the road, but simply putting a new tax on EVs would be a backwards step.”

Mr Lucas, who announced the State Government’s intention to implement a road use tax for electric vehicles in last month’s Budget, said the technology was not yet available to implement mandatory tracking devices in vehicles. “There are obviously going to be challenges and issues with any transition from the existing scheme to a new one,” Mr Lucas said.

“We are looking at doing it some time early next year … but, basically, the parliament will have to resolve whether it wants to go down this particular path or not.”

Mr Lucas said that the issue was not something that was being pushed by Liberal governments widely.