How much SA electric-vehicle owners likely to be charged revealed

The likely fee electric-vehicle owners could be slugged per kilometre has been revealed – while a decision is still to be made on abolishing stamp duty on the green cars.

South Australian electric-vehicle owners who travel 15,000km a year could be slugged an annual fee of $375 if the State Government follows Victoria’s lead.

Meanwhile, the Government says it has not ruled out a proposal to abolish or reduce stamp duty on electric vehicles – a move that could save buyers thousands of dollars.

Treasury and Finance Department chief executive David Reynolds has told a state parliamentary committee that while the Government was yet to settle on a charge-per-kilometre for SA-registered electric vehicles, it was considering Victoria’s new user-charge model.

Mr Reynolds said Victoria was planning to charge 2.5 cents per kilometre for an electric vehicle and 2 cents per kilometre for a plug-in hybrid car.

This would mean the owner of an electric car that travelled 15,000km a year would have to pay $375 while a hybrid clocking up the same distance would cost $300.

“We understand the intention is that when you register your vehicle, which you do online, you would have to enter the number of kilometres you have travelled, so then you will calculate how much you are required to pay,” Mr Reynolds said.

The State Government has not ruled out abolishing stamp duty on electric cars.

“Certainly there will be random checks (by police) based on what people’s odometer readings are, and when vehicles transfer ownership that will be required as well, to enter how many kilometres the vehicle has travelled.”

Mr Reynolds also told the parliamentary committee that a proposal to abolish or reduce stamp duty on electric vehicles to make them more affordable had been put to Treasurer Rob Lucas “but no decision has been made to do that”.

Mr Lucas said “we’re not ruling anything out” in relation to the idea to scrap or decrease stamp duty on the vehicles.

Stamp duty charges are based on the sale price.

For example, $1540 would be charged for $40,000, while 60,000 vehicle would incur a $2340 levy, and a $140,000 car would attracts a fee of $5540.

He also confirmed the Government was in discussions with its Victorian counterpart and was looking to model the SA levy on the eastern state’s user charge.

“We haven’t resolved anything yet in terms of the final shape and structure,” he said.

The Government’s plan to slug electric vehicle owners a levy was met with considerable backlash when it was unveiled in the State Budget in November.

Labor, the Greens and SA-Best have already flagged their opposition to the move, which will make it an uphill battle for the Government to get the legislation passed.

Under the proposal, electric vehicle owners would be required, from July 1 this year, to pay a fixed charge similar to an annual registration, and a variable charge based on distance travelled.

The initiative aimed to ensure electric vehicle users contribute to the future of road maintenance costs.

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

Opposition Treasury spokesman Stephen Mullighan said given the Government planned to make $1 million from the user charge, and there were about 1500 electric vehicle owners in SA, the fee could even be as high as around $650.

Mr Mullighan also questioned the rationale behind the levy.

“It is clear from the evidence to the ... committee that the government’s entire rationale for introducing this tax is based on a lie,” he said.

“Electric vehicle owners already make a direct contribution to the upkeep of South Australian roads and the claim that other motorists paying fuel excise is the way that they make a contribution to the roads has been debunked as a myth.”

Originally published as How much SA electric-vehicle owners likely to be charged revealed