EVs and Road Taxes

The Federal Government currently funds road construction and maintenance by imposing an excise tax on vehicle fuels. Whilst this regime is problematic in some regards, up till now it has worked reasonably well on the basis that the amount of fuel used roughly proportional to the number of road miles travelled.

However, with the future pointing to petroleum powered vehicles being supplanted by Electric Drive Vehicles (EVs), this method of raising road funding comes into question - with EV owners paying no excise - and the government is scrambling to develop new methods of taxing EVs to compensate.

This is going to prove an extremely difficult exercise because:

• The tax couldn't be applied to the vehicles themselves because some EVs might be travelling extensively on the roads every day, whilst others are only used for short trips or are garaged for lengthy periods - ie the tax would not be proportional to road usage.
• The tax couldn't be applied to the amount of electricity used because it would be impossible to determine whether electricity consumed had been for domestic or commercial use, or for charging vehicles. To address this the government might legislate special vehicle charging plugs that monitored power usage, but that would create a whole new industry in illegal charging facilities and home-grown special charging stations which in turn would require government inspectors to root out those cheating the system.

The obvious answer would be to introduce a Roads Maintenance levy in the Federal Taxation system (similar to the Medicare levy). Whilst some might argue they use public transport and don't drive a car, they  nevertheless consume products that transport companies have to deliver by road and are therefore beneficiaries of the transport network. 

People also all have to pay via taxation for some things they might never use, but are required by the rest of society - the electricity grid despite some people having solar and being off-grid, Universities for people who will never require tertiary education, NDIS for people who don't need daily assistance - there are many things we pay for that we as individuals don't need but are essential for the successful functioning of a democratic society.