In a closed-door meeting, Treasurer Chalmers identified the establishment of a road user charge for EVs as a priority for tax reform, although he has not publicly pursued the initiative.

Support for a fair contribution from EV drivers towards road maintenance costs has been echoed by Nationals MP Barnaby Joyce, who raised concerns about inequities between urban and regional drivers.

Federal environment minister Murray Watt emphasized the importance of collaboration with states and territories on this issue, but noted that it is still premature to finalize any plans.

Estimates suggest that the proposed road-user charge could cost between $300 and $400 annually based on mileage, with New South Wales officials projecting $73 million in revenue by the 2027-2028 financial year.

International examples, such as road pricing in London and New York, illustrate potential benefits like reduced traffic congestion and increased funding for sustainable transport projects.

The urgency for a national road-user charge has increased following a High Court decision that invalidated a proposed state-based charge in Victoria, emphasizing the need for a cohesive federal approach to road funding.

Currently, New South Wales is set to implement a road-user charge for EVs by July 2027, contingent on EV sales reaching 30% of new vehicle sales, while Western Australia is also considering a similar charge.

The Australian Government is exploring a national road-user charge for electric vehicle (EV) owners as traditional petrol and diesel vehicles decline, which is significantly impacting fuel excise revenue essential for road funding.

The Productivity Commission's analysis, presented to Treasurer Jim Chalmers, recommends that the government address declining fuel excise revenues and consider a comprehensive road-user charge.

This High Court ruling not only blocked Victoria's previous attempt to impose a distance charge on EVs but also highlighted that only the Commonwealth has the authority to implement such taxes.

The Commission advocates for a clearer signal regarding infrastructure costs through user charges that reflect actual road maintenance expenses, which could incentivize efficient usage.