MTA Position on EV Taxes

There has been extensive consultation with MTA members on a range of taxation and incentive measures proposed by various State Governments for electric vehicles (EVs).

“It’s not to say that Governments can’t choose to incentivise EVs, but road user charges are probably not the right mechanism to achieve that,” said Kaes Cillessen, the MTA’s Industry and Government Engagement Manager.

“We also have a concern about state and territory governments getting involved in what’s really a federally administered area, which is fuel excise.

“It risks double dipping and different jurisdictions creating different market environments for different technologies.

“Whatever is put in place should be consistent and national.

“We’re not against the spirit of what state governments are proposing but we don’t think that it’s the right tier of government.

“It’s important to recognise that EVs and other lowemission and hybrid vehicles are paying less or no fuel excise.

“That creates a gap in funding, which traditionally is used for road safety and infrastructure improvements.”

The MTA has made a submission in response to the SA Government’s Road User Charge for Zero and Low Emission Vehicles consultation document which sets out in simple terms its plan for what some have coined an ‘EV Tax’.

“While Governments across Australia look towards the future uptake of electric vehicles, transitioning towards new supply chains, business opportunities and skilling requirements must be prioritised by decision makers,” said MTA CEO, Paul Unerkov.

But while the MTA believes all road users should contribute to infrastructure and safety upgrades on our roads, it has cautioned that as with fuel excise, any reform must remain the responsibility of the Federal Government.