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First in the world: SA imposes EV tax

  • November 11 2020
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First in the world: SA imposes EV tax

By Cameron Micallef
November 11 2020

The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury.

SA imposes EV tax

First in the world: SA imposes EV tax

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  • November 11 2020
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The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury.

SA imposes EV tax

Announced by Treasurer Rob Lucas during the South Australian budget, the state is set to be the only jurisdiction in the world that actively disincentivises the purchase of electric vehicles through taxes.

The scale of the new charge has not been decided, but it will comprise a fixed component like registration charges and a variable charge based on distance travelled. 

The government is set to announce that it will be applied to all vehicles that require a plug instead of fuel, including hybrids.

“While governments around the world are using every means possible to incentivise the uptake of electric vehicles, South Australia reckons they have it all wrong,” said Electric Vehicle Council chief executive Behyad Jafari.

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“If the revenue from fuel excise is falling because South Australians are burning less foreign oil, that should be considered a blessing.”

The Electric Vehicle Council pointed to other benefits as a cost savings measure, arguing it offsets the costs of electric vehicles.

“Overall, it’s good for air quality, it’s good for the health budget, it’s good for carbon emissions, and it’s great for economic sovereignty.”

“The last thing any sane government would do is try to hit the brakes on this trend,” he said.

A separate study by EY has shown that every driver who switches to an electric vehicle delivers a $1,370 boost to government coffers, and a $8,763 boost to the Australian economy.

Mr Jafari said South Australia can’t hit their net zero targets with this kind of policy approach. The state is currently at less than 1 per cent electric vehicle uptake and now they want to introduce the world’s first EV tax. 

“It’s like responding to a drop in the tobacco tax take by slamming a new excise on nicotine gum. 

“There’s no special bucket of money for roads. Roads need to be paid for from general revenue just like everything else. There is zero need for the SA government to slap a big new tax on an emerging technology that delivers so much for the community,” Mr Jafari concluded.

First in the world: SA imposes EV tax
SA imposes EV tax
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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

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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