ATA backs road charges for electric vehicles

The Australian Trucking Association says it has welcomed the NSW Government’s support of electric vehicle road user charges, following the announcement of a similar scheme by South Australia earlier this week.

The South Australian Government is planning the introduction of a road-user charge for electric vehicles, set to commence from July 1, 2021.

Meanwhile, NSW Treasurer Dominic Perrottet yesterday pledged to support a road user charge for electric vehicles and is expected to introduce a user-charge policy to cabinet within the next year.

Acting CEO of the ATA Bill McKinley said the move was welcome news.

“The existing road user charging system is not fair. All road users must pay their fair share,” Mr McKinley said.

“Without reform, the burden of paying for roads would be forced onto the general public and impact funds allocated for other priorities such as schools and hospitals,” he said.

“This is an important national issue. Electric trucks are a reality, with an all-electric light truck entering the market in 2021 and thousands of electric cars already on our roads,” Mr McKinley said.

“Opponents of an electric vehicle road user charge need to explain what other taxes should be increased or what services will be cut in order to sustainable and fairly fund safe roads into the future.

“The ATA supports the uptake of electric vehicles, although is calling on governments to ensure road user charges for electric heavy vehicles are calculated fairly and transparently,” he said.

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Mr McKinley said any electric vehicle road user charge should include heavy vehicles and be set within the existing national system for setting heavy vehicle charges.

“Any road user charge must be set in a way which is nationally compatible and does not impose red tape on interstate operators,” he said.

Mr McKinley said that while fuel duty was in structural decline, revenue was not keeping pace with increases in vehicle kilometres travelled.

“Road charges used to bring in more revenue than what was spent on roads. Without reform, the structural decline in fuel duty will mean roads need to be subsidised from other revenue, which would impact funds allocated for other priorities such as schools and hospitals,” Mr McKinley said.

“The burden of paying for roads would be forced onto the general public, even if they don’t use roads, as well as those who currently don’t have the ability to use an electric vehicle, especially in rural areas,” he said.

Mr McKinley said road user charging was not about reducing electric vehicle uptake.

“Research shows us the main disincentive to electric vehicle uptake is the upfront price. Governments should work to reduce these barriers,” Mr McKinley said.

“Even with a road user charge, electric vehicle costs over an average ownership period are likely to be lower than that of petrol and diesel vehicles,” he concluded.