Aussies EV Road Tax : While the iconic ute continues to top Aussie sales charts, owners of electric vehicles (EVs) could soon be paying more in road usage fees than traditional petrol drivers — and the backlash is already heating up across states like Victoria and NSW.
Electric Car Road Tax in Australia: What’s Changing?
Electric vehicle owners have long touted the environmental and long-term financial benefits of going green. But now, several state governments are introducing road user charges that critics say unfairly penalise EV drivers — some of whom may end up paying more than owners of petrol or diesel vehicles.
In Victoria, the controversial Zero and Low Emission Vehicle (ZLEV) Road-User Charge has already kicked in. EV and plug-in hybrid drivers must pay 2.8 cents per kilometre driven (or 2.3 cents for PHEVs), tracked through annual odometer readings.
For example, a Victorian EV driver clocking up 15,000 km per year will owe $420 in road tax — more than what many petrol car owners pay via fuel excise at the bowser.
NSW and Queensland to Follow Victoria’s Lead
New South Wales is set to introduce a similar EV road tax from July 2027, or earlier if EVs hit 30% of new car sales. Queensland has also signalled support, although specific timelines remain unclear. The shift has sparked fierce debate, particularly as EV adoption grows rapidly thanks to federal and state incentives.
While federal fuel excise is meant to fund road maintenance, EVs bypass that system by not using petrol or diesel. States argue that all road users should contribute fairly, but EV advocates warn that the timing and scale of these new taxes could discourage Australians from making the switch to electric.
EV Road Tax vs Fuel Excise: Who’s Really Paying More?
Let’s break down the numbers. Here’s how an electric car driver compares to a petrol vehicle owner in terms of road taxes over a typical year.
| Vehicle Type | Annual Distance Driven (km) | Fuel Consumption or Rate | Estimated Road/Fuel Tax |
|---|---|---|---|
| Petrol Car (8L/100km) | 15,000 | $0.445 per litre fuel excise | $534 |
| Electric Vehicle (VIC) | 15,000 | 2.8 cents per km | $420 |
| Plug-in Hybrid (VIC) | 15,000 | 2.3 cents per km | $345 |
On paper, EV owners may appear to pay slightly less, but the situation gets murkier when you consider charging costs, lack of rebates for used EVs, and differences in road funding at state vs federal levels.
How This Impacts Aussie Drivers Across the States
The national rollout of EV road taxes will hit some drivers harder than others, depending on location, lifestyle, and vehicle type. Here’s what you need to know if you own or plan to buy an EV in Australia:
- Victoria: Already implemented road-user tax. Rebate of $3,000 for new EVs under $68,740 (limited to 4,000 vehicles annually).
- NSW: Road tax begins in 2027 or earlier. $3,000 rebate on new EVs under $68,750.
- Queensland: No road user charge yet, but a $6,000 EV rebate applies for eligible models.
- South Australia: Had plans for EV road tax, but it was scrapped in 2023.
- Tasmania & ACT: No EV tax yet. Generous incentives remain in place.
Why Some Experts Say It’s Premature
Energy and transport experts argue that EV taxes are arriving too soon. With electric vehicles making up less than 10% of new car sales nationally, there’s concern these policies could undermine progress on emissions targets and pricing parity.
“We’re trying to encourage a greener future, but we’re slapping early adopters with charges before the market’s even matured,” said Dr. Eliza Munro, a transport economist based in Sydney.
Environmental groups like the Electric Vehicle Council have slammed the Victorian tax, calling it “the world’s worst EV policy.” Their argument? It penalises people for making sustainable choices while petrol SUVs still dominate sales charts.
Case Study: Inner Melbourne vs Regional QLD
Consider two Aussie drivers:
- Claire in Fitzroy, VIC: Drives a Hyundai Kona EV 12,000 km/year. She pays $336 annually in road user charges. She has access to public transport, but values her EV for longer trips to the Mornington Peninsula.
- Dave in Toowoomba, QLD: Drives a Toyota Corolla petrol. He clocks 18,000 km/year and spends around $2,000 annually on petrol — including $640 in fuel excise. No EV tax yet in QLD.
For Claire, her costs are lower, but she feels penalised for going electric. Dave, meanwhile, still has no financial incentive to make the switch.
The Bigger Picture: Are Aussie EV Policies Out of Sync?
Australia’s EV policy landscape remains patchy and inconsistent. While the federal government has introduced a National Electric Vehicle Strategy, actual incentives and taxes vary wildly between states.
This fragmented approach confuses consumers and delays mass adoption, especially when charging infrastructure remains limited in many regional areas. A Tesla Supercharger in Sydney might be convenient, but good luck finding one in Broken Hill or Bundaberg.
What Needs to Change to Support EV Growth?
To drive real change, experts say governments need to:
- Delay EV taxes until at least 30–40% market penetration
- Harmonise policies nationally — consistent rules across states
- Invest heavily in rural and regional charging networks
- Support used EV imports and incentives for low-income Aussies
Until then, the risk remains that Australia lags behind global peers like Norway and the UK, where EV adoption is surging due to coordinated policy frameworks and clear financial incentives.
Final Thought: A Fairer Road Ahead?
As more Australians eye the switch to electric, the question isn’t whether EVs should contribute to road maintenance — but when and how much. The current system may be tipping the balance too early, turning a clean-energy revolution into a cost burden for those leading the charge.
And with the Toyota Hilux still outselling every EV on the market, it’s clear that the road to electrification needs better paving — not more potholes.
