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South Australia imports ‘world’s worst EV tax’

  • June 24 2021
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South Australia imports ‘world’s worst EV tax’

By Cameron Micallef
June 24 2021

The South Australian Treasurer looks to import the “world’s worst EV tax” from Victoria, an industry expert has warned.

South Australia imports ‘world’s worst EV tax’

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  • June 24 2021
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The South Australian Treasurer looks to import the “world’s worst EV tax” from Victoria, an industry expert has warned.

electric vehicle

Last year, the South Australian government announced its intentions to introduce a road user charge for electric vehicles ranging from plug-in to zero-emission vehicles.

South Australian Treasurer Rob Lucas said the proposed charge was to include a fixed component and a variable charge based on distance travelled.

On Tuesday, the Treasurer said, “Consistent with the commitment in last year’s budget and now that legislation has passed in Victoria, the government will introduce in the coming weeks its promised bill for a road user charge for electric vehicles.”

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According to the Australian Institute’s SA director, Noah Schultz-Byard, South Australia is following the wrong state, with NSW and the ACT adapting more environmentally friendly policies.

electric vehicle

“The Treasurer may say he’s not in the business of importing taxes from Victoria, but that’s exactly what he’s doing on electric vehicles,” Mr Schultz-Byard said.

Dan Andrew’s EV tax is set to see drivers slugged an additional 2.5 cents per kilometre travelled starting from 1 July 2021.

The tax is expected to raise $30 million in revenue over the next four years, costing the average EV owner between $260 and $300 per year on the assumption drivers travel between 10,400 and 12,000 km a year.

“Victoria made themselves a laughing stock by introducing an EV tax early and failing to adequately support consumers and the industry as they did so,” Mr Schultz-Byard said.

According to the Australian Institute, South Australia should learn from Victoria’s mistakes and adapt a more friendly transition to greener energy.

“The South Australian government should do a U-turn on this policy and pursue a far more balanced and measured approach, as the NSW Coalition government have done,” he said.

The Australian Institute also highlighted the importance of national leadership to help guide a transition to cleaner vehicles.

“With the federal government abandoning the EV policy space, it has been left up to the states to usher in the clean transport revolution. South Australia needs to get on with the job, not get in the way,” Mr Schultz-Byard concluded.

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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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