SA Labor Leader Peter Malinauskas to axe “EV tax” if he wins the state election

Electric cars were out on the track in Adelaide on Sunday, and the state’s Labor Opposition showed up with a promise to axe a controversial road tax.

Labor has vowed it will axe the tax on electric vehicles, called a “road user charge”, if it is elected in March.

State opposition leader Peter Malinauskas made the announcement at the Victoria Park Racecourse on Sunday.

“South Australian Labor if successful at the next election will repeal Steven Marshall’s electric vehicle tax,” he said.

“We do that in the name not of just good policy, when it comes to incentivising the tax of EVs, but more importantly good policy when meeting our obligation to a future generation of South Australians.”

The Australian Institute and Solar Citizens organised the event, Electrify SA: Putting EVs on the Fast Track, which included a display of 30 EVs, including many privately-owned cars.

The Mitsubishi Eclipse Cross plug-in hybrid EV was the crowd-pleaser because it also powered free popcorn.

The state government wants electric cars to be the preferred choice by 2030, and the default choice by 2035.

But polling by the Australia Institute has shown seven out of 10 South Australians would not buy an EV if they had to pay the road user charge.

Treasurer Rob Lucas said the Labor policy was “no great surprise” because they were likely to “promise the world when they’re in opposition”,

“But it’s inevitable,” he said.

“(Otherwise) there’ll be no funding available for road maintenance or upgrades.”

The EV Levy Amendment passed state parliament late last month, backed by SA Best and independent John Darley.

SA Best transport spokesman Frank Pangallo said he successfully argued for extra incentives for motorists, including extending the $3000 subsidy to the first 7000 (up from 6000) cars sold in SA, and providing a three-year motor registration fee exemption for battery EVs bought in SA once the Bill passes – up until June 30, 2025.