SA EV tax proposal ‘beyond belief’

Joining the chorus of criticism about the South Australian government’s proposed road user charges (RUC) for EVs, the Federal Chamber of Automotive Industries (FCAI) says it’s “simply beyond belief”.

The Electric Vehicle Council has already panned the suggestion and now FCAI chief executive Tony Weber has waded in.

“The announcement that the South Australian Government plans to introduce a road user charge for low and zero emission vehicles (LZEVs) is simply beyond belief,” he says.

“All around the world, developed countries recognise the environmental and health benefits of low and zero emission vehicles.  These countries encourage the uptake of LZEVs through incentivisation and the deployment of infrastructure,” Weber adds.

“With its proposal to tax LZEVs through a road user charging tariff, South Australia is discouraging the uptake of environmentally friendly motoring and is turning its back on the topic of climate change.”

The FCAI says it believes this charge will make South Australia the only jurisdiction in the world that actually opposes the uptake of low and zero emission vehicles.

Weber says the automotive industry realises that excise, and the treatment of motorists and their vehicles, is a long-term issue. 

“We recognise that road user charging is a complex topic that needs to be discussed in a holistic manner and on a national basis,” he adds.

“But first, we need to have a sophisticated discussion about how we encourage the uptake of all low and zero emission vehicles into our marketplace.  These vehicles offer economy wide benefits, including improved health outcomes, and will make a major contribution to improving our environmental scorecard.”

In New Zealand, light EVs are exempt from RUC until December 30, 2021, while heavy EVs are exempt until December 31, 2025.