Beginning next year, the Victoria and New South Wales governments are considering charging roadside fees for electric vehicles as a starting point for tax reforms for car users. Victoria is likely to be a pioneer, and sources confirm that in order to prepare for the state budget for May next year, government and industry executives have begun to investigate the use of royalties. NSW talked closely about Victoria’s movements and used it as a benchmark for action, but NSW Finance Ministers have begun discussions with related industries.
Detailed source confirmation: Given that Victoria and NSW are looking for new stimulus economic reforms, the relevant taxes are on the agenda and have been “multiple rounds of dialogue.” Federal Finance Minister Josh Frydenberg has urged states to find new policies in the transportation and infrastructure sectors to ease productivity slowdowns. As a revolutionary initiative advocated by the Australian infrastructure, the road usage fee for drivers based on the number of kilometers traveled will be the first step to motivate all drivers to use public transportation to avoid congestion in downtown streets.
The federal government is actively responding to a fuel tax reduction of about 11.3 billion yuan. According to forecasts from the Infrastructure, Transportation and Rural Economics Bureau, 60% of new cars will be electric vehicles by 2046. The government’s fuel tax revenue has fallen by 30% since 2001. Studies have shown that for the entire life of an electric vehicle, at a cost of 40 cents per kilometer, the cost of the electric vehicle owner will still be at least 3,600 less than the fuel vehicle in eight years.
