South Australian Government Abolishes Road-User Tax For Electric Vehicles Drivers

Once the controversial road-user charge was eliminated, South Australian owners of electric vehicles can now loosen up. Electric car users are urged to pay 2.5 cents per kilometre.

This tax intends to compensate for the revenue lost from fuel excise; a chunk of the budget will then go to the road fund.

The government has come to terms this past few days to delay the implementation of the pay-per-kilometre tax. It is scheduled to go into effect in July 2027, or when the electric vehicle sales contribute 30 percent to the state’s new-car sales.

When the planned modifications were announced in May 2022, South Australian Minister for Transport and Infrastructure Tom Koutsantonis issued a media release.

“We want more South Australians making more environmentally-friendly choices, not putting in barriers that dissuade them,” Koutsantonis said.

The Electric Vehicle Council of Australia said it was “pleased” with the news, noting that it would make electric cars more accessible to South Australians.

“The feedback we received from the community was overwhelming; the [previous government’s] decision to introduce this tax would have reduced community uptake [of electric cars],” Tom added.

Overall, the news of South Australia’s decision to reverse its position on the pay-per-kilometre tax for electric vehicles has been welcomed by green organisations and drivers alike. The move will make electric cars more accessible to people in the state and contribute to the further growth of electric vehicle sales across Australia.

It remains to be seen whether other states in Australia, like Victoria, will follow South Australia’s lead and abandon similar taxes on electric vehicles. Still, the decision is a positive step forward for those looking to switch to electric cars.

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