Treasurer Jim Chalmers previously mentioned the possibility of road-user charging for EVs, emphasizing the need for collaborative efforts with states and territories.

Barnaby Joyce, a member of the Coalition, has voiced support for a road tax aimed at electric vehicle (EV) owners, arguing that they benefit from fuel levies paid by traditional vehicle users.

Federal MP Tanya Plibersek has described the proposed road tax for EV users as a 'sensible' initiative, especially as Australia transitions towards electric cars.

Plibersek acknowledged that the decline in petrol and diesel vehicles is resulting in decreased revenue from fuel excise, which is critical for road maintenance and construction.

The discussion around a road tax comes ahead of the federal government's productivity roundtable, highlighting the urgent need for funds to maintain roads as fewer petrol and diesel vehicles contribute through fuel excise.

State and federal officials are set to convene in Sydney to explore potential road funding solutions, including the proposed EV tax.

Coalition senator Jane Hume has stressed the importance of a broader road tax to ensure equitable contributions from all vehicle users, particularly as the number of EVs continues to rise.

Concerns have been raised regarding future funding for road maintenance as the number of EVs increases, which contribute less to road upkeep compared to traditional fuel vehicles.

She also noted that while immediate changes to road funding are not anticipated, it is essential to plan for long-term infrastructure funding given the ongoing decline in fuel excise revenue.

Looking to international examples, New Zealand has implemented a distance-based road usage duty for light vehicles, including EVs, setting a precedent for similar measures.

Joyce has criticized the government's green initiatives, claiming that in his region, combustion engine vehicles dominate and electric utes are virtually nonexistent.

Despite ongoing discussions about the tax, Plibersek has reiterated that the government's tax priorities remain focused on delivering tax cuts for Australians and ensuring fair contributions from multinational companies.