Looking More Closely At Victoria’s Road Usage Tax For Electric Vehicles

Recently, Victoria became the first jurisdiction in the world to introduce a toll tax for Plug In Electric Vehicles. Other states plan to follow here in Australia. Victorian EV owners were forced to send their mileage information to the government so the tax could be calculated. If they do not comply, they are threatened with cancellation of their registration.

Do I want another treasure? No. Do I think it has been implemented at the right time (when only 2% of car sales in Australia are electric)? No. Do I think the case has been handled in a careful and polite way? Absolutely not!

But when you do the math, it’s not a big deal.

From an economic point of view: the tax is 2.5 øre per. Km. An average Australian driver drives 15,000km a year. The costs per Year would therefore be $ 375 ($ 31.25 / month). This is a very small price. Weigh these cost benefits of an electric car. In my case, I went from a V6 registration (over $ 1000) to a four-cylinder registration ($ 600) – plus, at 15000 km driven, I would pay about $ 1000 state tax on the gasoline, my car used, and another $ 1000 federal tax. Against this, $ 375 is a small amount.

The people who really feel the pinch are the PHEV drivers – they have to pay the toll and the petrol.

If you had not heard, petrol has hit $ 2 a liter in Australia, and the only suggestion coming in the media is to fill your tank before it rises further. No mention of electric cars of course. Ioniq a sign of the great demand for electric cars here in Australia – 240 Ioniq 5 electric cars arrived the other day and were sold out within a few hours. There were lots of gripes on Facebook about people missing out. The demand for electric cars is great here; supply (apart from Tesla) is very limited.

To those who complain about this tax, and even worse, are fighting against it in the High Court, I would say: accept the tax graciously. In terms of PR, that can be a good thing. EV drivers in Australia are already considered freeloaders because we do not pay petrol tax. This view is being pushed by politicians who want to perpetuate the lie that the petrol tax is being used to build and maintain roads.

I think fighting this minimal tax is counterproductive.

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