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EV levy plan sets up revenue fight with states

Victoria and NSW are demanding they receive revenue from a proposed new distance-based road user levy on electric vehicles that federal Treasurer Jim Chalmers has flagged he is working on with the states.

The Victorian government said it was willing to work with Chalmers on a national-led road user levy for EVs and wanted revenue for its roads, after the High Court in 2023 struck down the state’s EV charge of up to 2.6¢ per km driven.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
Sumeyya Ilanbey is the Victorian political correspondent for The Australian Financial Review. Connect with Sumeyya on Twitter. Email Sumeyya at sumeyya.ilanbey@afr.com.au

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    Original URL: https://www.afr.com/policy/tax-and-super/ev-levy-plan-sets-up-revenue-fight-with-states-20250714-p5meq7