A SINGLE Road User Charge (RUC) should be introduced to Australia, replacing the existing fuel excise, the Federal Chamber of Automotive Industries (FCAI) said as part of a submission on moving the Australian light duty vehicle market to 'net zero' emissions.
The submission was made to the Federal Government's Transport and Infrastructure Net Zero Consultation Roadmap consultation paper.
While the submission covered areas including the uptake of electric vehicles, incorporating Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (PHEV), as well as the development of Low Carbon Liquid Fuels (LCLF), an RUC would represent a major change in how vehicle owners and operators pay for travel.
Currently, Federal fuel excise is 50.6 cents per litre, with the FCAI calling for this to be removed and replaced by a charge based on the number of kilometres travelled.
The FCAI said the fuel excise raised more than $23 billion in the 2023/24 financial year, however it predicts this figure will reduce as more electric vehicles (EVs) enter service, leaving a 'gap' in government budgets.
Instead, the FCAI submission said 'there needs to be consideration given to the development of a scheme which could replace fuel excise, providing a technology agnostic approach to road charging'.
A key aspect of the FCAI submission was the need for an RUC to be 'technologically agnostic', applying equally to all powertrain methods, including electric, hybrid, petrol and diesel.
Tony Weber, FCAI Chief Executive, said the policy must 'look beyond just electrification of vehicles' and include features like low-carbon liquid fuels, ongoing development and expansion of electric vehicle recharging infrastructure and elimination of inefficient taxes such as the Luxury Car Tax, as well as any road user charge.
“The introduction of the New Vehicle Efficiency Standard provides industry with certainty regarding the expectations and ambitious targets of the Government,” Mr Weber said.
“However, this is not a ‘set and forget’ direction. There is a need to continue to focus on the broader enabling environment, and how can we reduce emissions in the existing fleet while the transition occurs."
The development of public and private electric vehicle recharging infrastructure remains a major priority for consumers and Mr Weber acknowledged the activity of the Commonwealth, State and Territory governments.
“Governments understand the importance of the development and performance management of recharging infrastructure and significant investments are being made,” Mr Weber said.
“There are big challenges ahead, particularly the roll out of infrastructure to regional and rural Australia. This is a complex piece of work that must be done in parallel with the capability and capacity of the electricity distribution network.”
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