Hybrids Vs PHEVs vs All Electric, page-1773

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    Australian electric-car road-user tax now a Federal Government ‘priority’


    A tax on electric cars is closer than ever – this time as a national measure, after Victoria's version was struck down by the High Court – with the aim of recouping falling revenue from fewer motorists purchasing petrol and diesel.

    A national tax on electric-vehicle (EV) drivers – a road user charge that could bill drivers per kilometre travelled – is said to be a "priority" of the Federal Government, which may rely on the current party being elected for a second term.

    It is being pitched to fill the gap in the budget left by declining revenues from the fuel excise – the tax on the sale of petrol and diesel that is intended to fund roads – as more drivers switch to low- and zero-emissions cars.

    Federal Treasurer Jim Chalmers reportedly told a Business Council of Australia dinner in Canberra last week an EV road user charge is on the agenda, according to attendees speaking with The Australian Financial Review.

    Parliamentary Budget Office figures cited by the AFR show Treasury predicts the fuel excise to account for 3.9 per cent of total tax revenue in the 2024-25 financial year, down from 7.4 per cent in 1999-2000.

    Close to 92,000 battery-electric vehicles were reported as sold last year – or approximately 7.4 per cent of new-car deliveries – which consume zero petrol or diesel.

    In some states, electric vehicles pay reduced or no stamp duty at the time of purchase, and many models are eligible for national Fringe Benefits Tax (FBT) exemptions on novated leases – both sources of revenue for State and Federal Governments.

    Victoria's road user charge came into force on 1 July 2021, and charged a 2.8-cent tax on every kilometre driven by battery-electric or hydrogen-powered vehicles, or 2.3 cents per kilometre for plug-in hybrids (PHEVs)

    It was criticised for taxing PHEVs twice, as drivers were required to pay fuel excise when filling up with petrol, as well as the road-user charge – irrespective of whether they were driving their vehicle on petrol or electric power.

    Prior to the axing of the Victorian levy, New South Wales announced plans for a charge of 2.906 cents per kilometre driven by electric and hydrogen cars, and 80 per cent of that – 2.324 cents per kilometre – for PHEVs.

    Looks like they are running out of our money - who would have think that?
 
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