Since early 1990s, policy advisors including the Productivity Commission, Infrastructure Partnerships Australia, the Harper Review, Infrastructure Australia, and Infrastructure Victoria have called on Australian governments to reform the way we pay for roads.

Over recent years however, the reform case has become increasingly urgent. The uptake of fuel-efficient vehicles has driven a rapid and terminal decline in fuel excise revenue – which makes up a major source of funding for our roads.

With electric vehicles set to become a dealership mainstay over the next decade, fuel excise revenue will simply fall off a cliff, meaning less money to pay for transport investment.

That is why Infrastructure Partnerships Australia is calling for a road user charge on electric vehicles. Applying a simple distance-based charge to electric vehicles will ensure every motorist makes a fair and sustainable contribution to the use of the roads.

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Fuel Tax

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