Ute-driving tradies left to carry the load: ALP baulks at Tesla tax

Labor is threatening to block a Liberal plan to charge green ­motorists a fee so they contribute to the upkeep of roads.

James Smale with his 2010 Falcon ute in Craigmore, Adelaide. ‘I don’t think Labor get this issue,’ he says. Picture: Roy Van Der Vegt

The first salvo in the battle over the taxation of electric vehicles has been fired in South Australia, with Labor threatening to block a Liberal plan to charge green ­motorists a fee so they contribute to the upkeep of roads.

Labor has been accused of adopting an inner-city position that will punish blue-collar voters who cannot afford electric vehicles and must shoulder the road-funding burden alone through the nation’s $49.3bn fuel excise scheme.

Opposition Leader Peter Malinauskas said he was calling a caucus meeting to discuss the plan, which he described as “an extraordinary proposition that we are going to tax people for buying cars that don’t pollute the earth”. The battle is a taste of a looming national showdown as other states and territories consider road usage schemes for electric and zero-emission vehicles.

The Australian understands the idea has been canvassed on several occasions at national treasurers’ meetings over the past two years, with SA this week ­becoming the first to move. The state government ­announced in its budget on Tuesday that it intended to raise $1m in 2020-21 by applying a charge on all owners of electric and zero-emission vehicles.

The amount is yet to be determined but it will combine a standard registration-style fee and a separate usage-based component which may require motorists to use a log book.

The announcement by Treasurer Rob Lucas has been welcomed by the Australian Automobile Association as striking the right balance between sharing the revenue burden without discouraging the purchase of electric vehicles.

But Mr Malinauskas rubbished the idea as “a sure-fire way to make sure nobody buys electric cars”. “The idea of tax, apart from raising revenue for the government, is that you incentivise good behaviour,” he said. “This is an ongoing road user charge where mums and dads will be filling out log books, trying to work out how much tax they’re going to pay.”

Mr Lucas said he was stunned Labor would oppose the proposed charge before legislation had even been drafted. “This is typical of a leader who lacks the guts to look beyond cheer-chasing and short-term populism and support long-term reform that’s in the interest of the state,” he said.

While Labor’s position is likely to play well in affluent inner-city seats, it was going down poorly in outer suburban Labor-held electorates on Thursday with voters who can’t afford electric vehicles and have to drive long distances.

Craigmore resident James Smale is a former sign writer who is now unemployed after being laid off due to COVID. The 48-year-old drives a 2010 Ford FQ ute which cost him $12,000 and would love to upgrade his car.

“I don’t think Labor get this issue,” Mr Smale said. “There’s no way I could afford to buy an electric car and I don’t see why more well-off people who can don’t contribute like I do whenever I fill up.”