Liberal senator Bridget McKenzie has hinted at the possibility of a Coalition government introducing road user charges for electric vehicle owners. She expressed concerns about decreasing fuel excise and its impact on budgets required for road maintenance across Australia.
McKenzie, also the shadow transport minister, is currently developing the Coalition’s transport policy ahead of the next federal election. This policy will outline their vision for electric vehicles, with a road user charge being a potential consideration. Such a charge would replace fuel excise, as electric vehicles do not require petrol, which funds road repairs.
When questioned about road user charges for electric vehicles, McKenzie did not rule out the idea. She stressed that the government should already be addressing the issue. “The high court has ruled on the need for the treasurer to act on a national approach to tax EV users,” McKenzie stated. She added that “right now, it’s only petrol excise funding roads, and the government is doing nothing.”
The government faces increasing pressure from motoring groups to address the declining fuel excise revenue as electric vehicle sales continue rising. According to data from January to August, electric vehicles represented 7.6% of total car sales, while hybrid sales accounted for 15.5%.
McKenzie has repeatedly discussed the policy challenges associated with road user charges. In a previous statement to Guardian Australia, she called for a unified approach linking fuel excise and fuel efficiency standards. “There needs to be one policy discussion rather than a fragmented one,” she emphasized.
However, McKenzie distanced herself from following the U.S. policy on banning Chinese-made electric vehicles, a decision recently suggested by Barnaby Joyce. Joyce had voiced concerns over Chinese-made technology potentially serving “malevolent purposes” from totalitarian states.
McKenzie stated, “It is not the Coalition’s plan. We won’t be banning Chinese-made electric vehicles.” Her comments contrast with Joyce’s statements linking Chinese-made electric vehicles to the recent Hezbollah pager explosions in Lebanon. Joyce argued that Chinese-made technology could be exploited for harmful purposes, raising significant concerns.
Meanwhile, Energy Minister Chris Bowen has confirmed Australia will not follow the U.S. in banning Chinese-made electric vehicles. The debate over electric vehicle policies continues as Australia prepares for significant shifts in automotive industry dynamics.