It seems the possibility of the Federal Government introducing a road user charge is very much on the cards as revenues decline from the fuel excise, the tax on the sale of petrol and diesel fuel to fund road maintenance, as more and more drivers switch to zero and low emission cars. The current fuel excise of 50.8 cents per litre of petrol and diesel fuel would be replaced by a road user charge that will bill all drivers per kilometre travelled. Fuel excise revenue has been falling for some years with Treasury predicting it will account for 3.9 per cent of the total tax take in the 2024/25 financial year, down from 7.4 per cent in 1999- 2000. At last week’s Business Council of Australia dinner in Canberra, Federal Treasurer Jim Chalmers reportedly suggested an EV road user charge was very much on the agenda. I’m David Berthon.

Download this podcast here