The South Australian government is showing leadership on sustainable and fair road funding through its proposed road user charge for EVs from July 1.
That’s according to the Australian Trucking Association (ATA), although it says the move highlights the need for an increased uptake of EVs and it calls for continued incentives from governments.
“Governments should accelerate the uptake of EVs and make hydrogen trucks a commercial reality,” ATA acting chief executive Bill McKinley says.
While fuel duty is in structural decline, revenue is not keeping pace with increases in vehicle kilometres travelled, he adds.
“Road charges used to bring in more revenue than what was spent on roads.
“Without reform, the structural decline in fuel duty will mean roads need to be subsidised from other revenue, which would impact funds allocated for other priorities such as schools and hospitals,” McKinley explains.
“The burden of paying for roads would be forced onto the general public, even if they don’t use roads, as well as those who currently don’t have the ability to use an electric vehicle, especially in rural areas.”
McKinley says the existing system isn’t fair.
“Opponents of an electric vehicle road user charge (RUC) need to explain what other taxes should be increased or what services will be cut in order to sustainable and fairly fund safe roads into the future,” he states following criticism of the “EV tax” from the Electric Vehicle Council and the Federal Chamber of Automotive Industries (FCAI).
The Australian Automobile Association says the SA RUC proposal is a “step in the right direction” but it wants a national approach for consistency and fairness.
RUC isn’t about reducing EV uptake, McKinley says.
“Research shows us the main disincentive to electric vehicle uptake is the upfront price – governments should work to reduce these barriers.
“Even with a road user charge, electric vehicle costs over an average ownership period are likely to be lower than that of petrol and diesel vehicles.”
The ATA also urges governments to ensure RUC for electric heavy vehicles are calculated fairly and transparently.
“The South Australian electric vehicle road user charge should include heavy vehicles and be set within the existing national system for setting heavy vehicle charges,” McKinley adds.
“Electric trucks are a reality, and the South Australian road user charge must be set in a way which is nationally compatible and does not impose red tape on interstate operators.”
The ATA and its member associations collectively represent 50,000 businesses and 200,000 people in the Australian trucking industry.
