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Vic ZEVs Package Shows Incentives and Reform Go Hand In Hand

2 May 2021 - Roads Australia (RA), the peak body for roads within an integrated transport system, says the Victorian Government’s suite of incentive measures designed to enhance uptake of zero emissions vehicles (ZEVs) proves that the pursuit of sensible road user charging reform is entirely compatible with encouraging consumers to purchase ZEVs.

The Victorian Government’s announcement is a sensible, considered approach that strikes the right balance between supporting the shift to ZEVs and making certain those driving such vehicles make an appropriate contribution to the construction and maintenance of the roads they use,” said RA President Michael Bushby.

“Indeed, it is precisely because the Victorian Government is confident its modest proposed road user charge for low emissions vehicles from 1 July will support funding certainty that they can now establish an ambitious target of having 50 per cent of all new car sales being ZEVs by 2030.”

“Fuel excise was always intended to fund the construction and maintenance of our road networks. However, as vehicles have become more fuel efficient, the proportion of revenue generated by fuel excise has fallen.”

“The Commonwealth Parliamentary Budget Office has published research noting that revenue from fuel excise declined from 1.6 per cent of GDP in 2001/02 to 1 per cent in 2016/17. Unless this decline is addressed, Australia faces the prospect of being unable to pay for the delivery and maintenance of necessary modern road infrastructure.”

“The Victorian Government’s announcement clearly shows that the pursuit of sensible, responsible road user charging reform is no barrier to simultaneously using other policy levers to encourage greater uptake of ZEVs – including subsidies, discounts on registration and investment in charging infrastructure.”

“Roads Australia encourages other jurisdictions to emulate the Victorian Government’s approach – and to pursue the development of a fair, nationally consistent road user charging model capable of supporting efficient, safe and sustainable road infrastructure.”

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Roads Australia Insider - 7 May 2021