Victorian Government to introduce distance based electric vehicle charge

Ahead of the State Budget announcement on Tuesday the Victorian Government has confirmed the Budget will include a distance based charge for electric vehicles.

Electric, hydrogen and other zero‑emission vehicles will pay a 2.5 cent charge per kilometre driven and plug-in hybrid-electric vehicles will face a charge of two cents per kilometre driven. The $100 registration concession for these vehicles, will still apply.

These fees will come in place of the fuel excise.

Alongside this plan, Tuesday’s State Budget is expected to make investments that will help to accelerate the adoption of zero and low-emissions vehicles.

A Victorian Government spokesperson said, this is a fair and sensible change that makes sure all Victorian motorists pay their fair share for the record investments in our roads network.

“It’s not fair that a tradie driving a ute is paying to maintain our roads, but someone driving a Tesla is not,” they said.

“Tuesday’s Budget will include funding for measures that accelerate the take-up of electric and low emissions vehicles, ensuring Victoria pushes towards a clean energy future.”

In early November, the South Australian Government also released plans in it’s budget to introduce a road user charge for plug-in electric vehicles.

In South Australia the tax will include a fixed charge and a variable charge based on distance traveled. The state budget outlines that revenue will be used to ensure road maintenance funding is sustainable into the future.


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