State Government’s electric car levy opposed before it even reaches parliament

A plan to charge electric car owners a fee to use their cars looks set to fail before it has even reached state parliament.

An electric car charging station.

A controversial proposal to slug electric vehicle owners a user charge is already hanging by a thread, with the Opposition, the Greens and SA Best all poised to vote against the legislation before it has even been introduced into state parliament.

Unless the State Government can change its counterparts’ minds, its plan, which was unveiled during Tuesday’s State Budget, will be thrown out when it reaches the Upper House.

Privacy concerns have also been raised after Energy Minister Dan Van Holst Pellekaan told state parliament on Thursday that the Government might use GPS tracking to determine charges for its planned distance-based fees.

Under the proposal, electric vehicle owners would, from July next year, be required to pay a fixed charge similar to annual registration, and a variable charge based on distance travelled.

SA would become the first jurisdiction to introduce such a charge, which aims to ensure electric vehicle users contribute to future road maintenance costs.

Unlike fuel excise, it would be collected by the State rather than the Federal Government and is forecast to initially generate only $1 million in revenue a year.

Opposition Leader Peter Malinauskas said the proposed charges risked stymieing the growing market, hurting the environment and setting a dangerous precedent for a distance-based charging scheme to be applied across all vehicles.

“As a state, we must be doing everything we can to support sectors which are good for the environment and create jobs,” he said.

“We should be striving to be a national leader when it comes to electric cars, which would benefit our economy and our environment.

“Instead, Steven Marshall is whacking a new tax on electric cars, which will slam the brakes on the growing market here in South Australia.”

Labor’s opposition follows SA-Best yesterday voicing their disapproval for the proposal as it stands.

“The new levy will be a disincentive for new e-car sales,” SA Best MLC Frank Pangallo said.

Greens MLC Mark Parnell said based on what was known about the proposed Bill so far, his party would be opposing it.

“We should be providing incentives for EVs, not disincentives,” he said.

“Penalising green transport that doesn’t exacerbate climate change is entirely the wrong way to go.”

Should Labor, SA Best and the Greens vote against the bill in the Upper House, where the Liberals do not hold the majority, the legislation would be killed off.

However, Premier Steven Marshall said it was premature for parties to be making decisions about the bill before they had even seen it.

“Let’s just wait to see what happens – I think what we put forward will be sensible,” he said.

“I think most people appreciate that all road users should be making a contribution.”

Mr Marshall said the legislation would be introduced into parliament early next year.

Meanwhile, Energy Minister Dan Van Holst Pellekaan was asked in parliament on Thursday how the Government planned to determine how far an electric vehicle had travelled so it could levy its distance-based charge.

“There is more work to do with regard to getting the details figured out,” he said.

“But … there are a few ways that it could work. It could work potentially with GPS technology.”

Opposition Treasury spokesman Stephen Mullighan said motorists would be “shocked to learn that the Government is considering tracking their movements with GPS devices so they can impose this new tax.”

“Private citizens have the right to move about the community freely without being worried about how the Government’s got them under surveillance,” he said.

The bill has also raised the ire of SA Senator Rex Patrick and the Electric Vehicle Council.

Mr Patrick argued the Government should be doing more to encourage the uptake of new technologies and the new charge had come too early given the low uptake of electric vehicles.

“I understand the rationale because over time we’re going to end up with a lower level of fuel excise, but I think it’s ill-conceived to impose such a charge this early,” he said.