SA road user charge ‘will impede take-up of electric vehicles’

Plans to
introduce a road user charge for electric vehicles in South Australia have been
criticised as likely to slow the take-up of EV technology nationally.

State Treasurer Rob Lucas said the Government’s proposed charge would include a fixed component and a variable charge based on distance travelled, and would raise about $1 million per year, starting in July 2021.

Mr Lucas argued
that as fuel excise revenue became eroded over time by EVs replacing petrol and
diesel vehicles, a road user charge on non-petrol vehicles was needed to
replace it.

He said electric
vehicle drivers had to pay to use the road network, just as other motorists and
freight operators paid for roads through fuel excise duty.

Electric
Vehicle Council chief executive Behyad Jafari has said the new tax will “actively
discourage” people from buying electric cars and would send a message to the
sector to “move away from South Australia and keep doing your business
elsewhere”.

However, Infrastructure
Partnerships Australia chief executive Adrian Dwyer defended the proposed road
user charge.

“It is misleading
to suggest this reform is a disincentive for EV uptake when the package that
has been announced in SA is a net win for EV owners,” he said.

“The
Government is investing $18.3 million over the next four years into a
state-wide electric vehicle charging network, which will far outweigh any cost
borne by owners of EVs through a road user charge.

“Making a
fair contribution to the infrastructure we rely on should not be a novel
concept,” he said.

Roads
Australia also welcomed the SA Government’s decision, saying says it
underscores the need to be focused on equity and the pursuit of a nationally
consistent approach.

“Inequities
in the current system, where vehicles with lower fuel efficiency effectively
pay a higher distance-based road-user charge, need to be removed,” said RA
President Michael Bushby.