Rita Saffioti leads charge for EV tax following spike in electric vehicles amid fuel crisis

Rita Saffioti wants a per-kilometre tax on electric and hybrid vehicles phased-in so there’s no surprise sting for the thousands of drivers flocking to EV car yards as a result of the fuel crisis. Federal Treasurer Jim Chalmers has put a new road user tax on the Budget agenda as petrol prices surge, with reports Treasury has been asked to undertake modelling on options, who would collect the levy and how it would be administered. The West Australian understands states and territories have agreed to a proposal. WA’s Treasurer says a nationally consistent approach is needed and that she is “actively involved” in discussions that are underway. “Our Government supports phasing in of these reforms over time to ensure the policy settings are correct, and to provide clear guidance and certainty for motorists,” Ms Saffioti said. “The ongoing volatility in the fuel market reinforces the need to plan for long‑term, sustainable road funding.” She said a road user charge for electric and hybrid vehicles is necessary for the sake of fairness, as EV drivers avoid fuel excise at the petrol bowser. “The Cook Government supports a nationally consistent approach to road user charging for electric and hybrid vehicles, so all motorists contribute their fair share to road funding,” Ms Saffioti said. The McGowan Government had announced plans to introduce a charge of 2.5 cents per kilometre from 2027, and 2.5 cents per kilometre for plug-in hybrids. The WA tax plan was axed after a 2023 High Court ruling deemed Victoria’s state-based road user charge unconstitutional. There’s evidence that EV car sales have surged since petrol prices started soaring in the wake of the Middle East conflict. MoneyMe’s latest lending data revealed the number of EV car loans has increased by 90 per cent in a month and 270 per cent year-on-year, while loans for fuel vehicles fell 12 per cent. Analysis by Positive Economics Advisory found that an electric vehicle can save $289 a month, based on prices of $2.40 per litre for unleaded, but that upfront cost of remains a barrier. “Price isn’t the only hurdle, range anxiety and charging infrastructure remain concerns, particularly during peak travel periods like Easter,” National Automotive Leasing and Salary Packaging Association chief executive Rohan Martin said.