A proposed road tax for eclectic cars sparked a massive fight between Albanese minister Tanya Plibersek and Nationals MP Barnaby Joyce on Monday, with the latter accusing Plibersek of trying not to upset her inner-city electorate.
Ahead of the federal government’s productivity roundtable next week, the idea of a road tax for electric vehicles has been floated as a way to set aside money for road upkeep.
Treasurer Jim Chalmers said in June he intended to work with state and territory governments “on the future of road-user charging” for EVs.
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Currently, money from the fuel excise is allocated for fixing roads.
On Monday, Plibersek was quizzed on the introduction of a road user tax.
Plibersek told Sunrise: “This is a discussion that the states and territories have been leading for some time.

“It’s no secret that as the number of petrol vehicles and diesel vehicles goes down, the take from fuel excise decreases, that means less money for building and maintaining roads.’
She continued: “(But) I don’t think anything is happening tomorrow.
“But I do think it’s sensible to look long-term for the states and territories at what they do to make sure that there’s enough money to build the roads that people want to drive on and to make sure they’re maintained as well after all this rain we’ve had.
“People would have noticed that there’s a lot of potholes around. It’s an expensive thing to build and maintain the road network we’ve got. We’ve got to make paying for that.”
Joyce took aim at the number of electric vehicles in Plibersek’s electorate of Sydney. The federal Sydney seat has 2725 registered electric vehicles, with the fourth highest in the entire country.
Joyce replied: “I got a sense there’s a lot of EVs in Tanya’s electorate, so she doesn’t want to jump right in there, got to be careful about that, but we (in regional NSW) are overwhelmingly combustion engines because as you can see it is different terrain.”
Joyce added there is a difference in tone between Prime Minister Anthony Albanese and Treasurer, Jim Chalmers. He said the Chalmers was clearly eyeing off a new tax for EV-owners.
Joyce continued: “Remember Tanya said, ‘look, we’re only going to bring in the taxes that the Prime Minister talks about before the election.’ Fine. (But) that’s not what the Treasurer is doing, he is doing something else.
“There is a bit of a conflict going on there — there’s two balls (in) the paddock on that one.”
Plibersek shot back that Joyce didn’t vote for tax cuts.
Barr, however, pressed Plibersek on the possibility of a new tax.
In 2023, Victoria tried to put in place a 2 cent per kilometre charge on EV users, but the proposal was overruled by the High Court.
New Zealand has a scheme in place for road-user charges for EVs, with petrol cars soon to be added to the tax.
Barr said: “Call it what you will, but if EV drivers have to pay more. It’s an increase. Isn’t it?”
Joyce shot back, “absolutely”
Plibersek chimed in: “Nothing is happening tomorrow. It’s a sensible conversation to look at long term. You’re all getting very excited over one conversation.
“I think it’s a very sensible discussion for the state and territories to be having at the moment. But it’s a long-term discussion. Nothing is changing tomorrow.”
- with AAP
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