Automaker boss says road ‘slug’ must be fair
A leading automaker has savaged Labor’s move to rush through a new road tax as poorly thought out and unfair on millions of Aussie motorists.
A leading electric automotive brand has urged the Federal Government not to “slug” motorists with a new road user charge (RUC) that unfairly targets electric vehicle (EV) owners.
Polestar’s Australian boss Scott Maynard said the fuel excise gap created by EV adoption is an opportunity to consider the “whole transport ecosystem” not simply a new charge targeting zero-emission drivers.
“Motorists are already subject to stamp duty, registration fees, fuel excise, Fringe Benefits Tax (FBT), Luxury Car Tax (LCT) in some cases, as well as tolls and parking space levies in the CBD,” he said.
Earlier this week the Productivity Commission suggested a per-kilometre charge for electric vehicle (EV) owners as the fuel excise revenue is shrinking as more Australians switch to EVs.
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Maynard said the scheme, which Treasurer Jim Chalmers is fast-tracking, could be fair but only if it’s applied equally across all vehicles and not used to squeeze money from drivers.
“Driving is an essential activity, so it’s important the government has a clear understanding of what it would be seeking to achieve with a road user charge. Only when we understand that question can a framework be developed, and commentary applied,” he said.
The Swedish EV maker argued that revenue from any new scheme should be ring-fenced for road maintenance and infrastructure, unlike fuel excise which “just goes into the pot of government spending”.
“Transparency is key,” he said.
Maynard also warned against a “one-size-fits-all” approach that could penalise rural and regional drivers.
“We do need to be careful that people in regional and rural areas are not unfairly targeted given the long distances travelled to obtain services such as medical care, education, and household supplies,” he said.
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“We don’t want to have a situation where people who commute long distances from regional or rural areas are then at a disadvantage to drivers who can afford to live in the inner city.”
Maynard suggested Australia should look to “best practice other markets” and consider both distance and weight to reflect road wear, focus on the biggest emitters, such as heavy vehicles, if cutting carbon is a primary goal.
“I don’t think any driver – electric or otherwise – will have an issue with a road user charge system to replace fuel excise as long as it is fair and equitable,” he said.
Maynard added that the system should be designed on clear goals, whether reducing congestion, cutting emissions, of funding road maintenance - and if emissions reduction is the aim, “targeting heavy vehicles with higher emissions should be a priority”.
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“Australia will need to identify its goals with a road user charging system and establish a framework accordingly,” he said.
“There’s a myriad of issues that need to be addressed before a road user charge can be applied.”
The Treasurer’s office said that they “will work with the states and territories on policies in this area, but we’ll do it in a considered and consultative way and take the time to get it right”.
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