New South Wales treasurer Dominic Perrottet will cement his state’s status as the dirty car capital of the world if he follows through with a scheme to whack a tax on EVs, the Electric Vehicle Council (EVC) says.
Perrottet’s puzzling position, if retained, would be a crushing disappointment to those who could see the abundant potential of EVs for NSW, EVC chief executive Behyad Jafari says.
“No other jurisdiction in the world – aside from the South Australian Coalition Government – has thought it sensible to apply a special new tax to electric vehicles,” Jafari says.
“Yes, in the long run governments won’t be receiving as much in fuel excise as people drive more efficient vehicles. But that’s a good thing. Burning less foreign oil in our cars is good for our city air, it’s good for our health, it’s good for our climate, and it’s good for our economic sovereignty.
“The money paid in fuel excise doesn’t get quarantined for roads. That’s a myth. If tax is dwindling from one area, governments don’t have to make it up from that same area. That would be like whacking a new tax on nicotine gum because you’re worried about a drop in the tobacco excise. It’s madness.”
Jafari says when EVs start becoming common place, the time may come to consider new taxes.
“But at this point in our history, when we should be doing everything possible to encourage people to switch to electric vehicles, this tax would be pure poison.
“Of all the jurisdictions in the world New South Wales would have to be one of the last who should worry about the speed of EV uptake. It’s already languishing up the back of the pack in the global race toward electric vehicles. Perrottet now wants to blow out our tyres.”
Jafari points to modelling by EY which shows every electric car sold today is a net win for government coffers and a net win for the economy more broadly.
“As any Liberal worth their salt will tell you, when you whack a big new tax on something you discourage its use,” he says.
“That’s exactly what would happen here to the detriment of every citizen in New South Wales – and to the detriment of the planet.”
The Federal Chamber of Automotive Industries (FCAI) has also criticised both the NSW and SA EV road user charge stance while lauding Tasmania’s aims to introduce an all-electric fleet within 10 years.
Meanwhile, the Australian Trucking Association (ATA) welcomes the NSW government’s support of EV road user charges, following the announcement of a similar scheme by South Australia.
Perrottet is expected to introduce the user charge policy to cabinet within the next year.
“The existing road user charging system is not fair. All road users must pay their fair share,” ATA acting chief executive Bill McKinley says.
“Without reform, the burden of paying for roads would be forced onto the general public and impact funds allocated for other priorities such as schools and hospitals,” he says.
“This is an important national issue. Electric trucks are a reality, with an all-electric light truck entering the market in 2021 and thousands of electric cars already on our roads,” McKinley adds.
“Opponents of an electric vehicle road user charge 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.
“The ATA supports the uptake of electric vehicles, although is calling on governments to ensure road user charges for electric heavy vehicles are calculated fairly and transparently.”
This is a crazy new tax being unfairly placed on a minority of road users. EVs account for less than 0.2% of all vehicle sales.
You only have to look at the road damage around Marulan to understand where most of the road damage comes from. It comes from trucks. Maybe NSW should increase the levies on all trucks to ensure road damage is fairly apportioned.