The Australian Trucking Association (ATA) has called for the Federal Government to introduce a nationally consistent road user charge (RUC) for electric vehicles, in a submission to the Treasury’s 2025 Economic Reform Roundtable.
While the ATA supports the continued growth of electric vehicles (EVs) to help reduce emissions and improve Australia’s fuel security, it argues that now is the time to begin planning a fair and sustainable way for these vehicles to contribute to road funding.
“The lack of an EV charge is regressive and inequitable. At present, an enrolled nurse driving a 2005 Toyota Yaris worth $4,000 pays more to use the roads than a finance executive driving a Tesla Model Y Performance worth $82,900,” the ATA wrote in its submission.
A Future-Proofed Funding Model
The ATA proposes the introduction of an EV road user charge once EVs make up 30 per cent of new vehicle sales—first for light vehicles, and later for heavy vehicles when they reach the same threshold.
Fuel excise revenue is forecast to continue its long-term decline, dropping from 5.2 per cent of government revenue in 2008–09 to just 3.5 per cent by 2028–29. Without reform, this will erode the funding base for Australia’s transport infrastructure.
“Decisions need to be made now on the legislative and administrative framework for the charge,” the ATA warned, adding that rushing through policy later could lead to implementation failures similar to Victoria’s overturned EV road user charge, which was ruled unconstitutional by the High Court in 2023.
National Consistency Over State Fragmentation
The submission also cautioned against a fragmented state-by-state approach. Although Victoria’s charge was struck down, the 2025–26 NSW Budget still forecasts $73 million in revenue from its own EV charge by 2027–28 and $141 million by 2028–29.
The ATA argues for a single, nationally consistent model to prevent a patchwork of state-based schemes that would confuse consumers and create administrative burdens for businesses operating across jurisdictions.
Heavy Vehicles: A Fair and Gradual Transition
For heavy vehicles, the ATA supports the eventual introduction of invoice-based RUCs for electric trucks but believes that diesel-powered trucks should remain on the current system of registration charges and fuel tax credits into the 2030s.
“The existing model will be workable into the 2030s,” the ATA says, referring to the current fuel tax credit system, which ensures that operators are charged fairly for their use of the road network without being overcharged.
However, the organisation supports giving businesses the option to opt-in early to the invoice-based system if they wish.
Equity and Future Readiness
The submission reflects the ATA’s broader belief that EV adoption and road funding reform can be mutually reinforcing if approached strategically.
“We need to increase EV uptake to reduce Australia’s carbon emissions and support its sovereign fuel security. Every EV on the road reduces Australia’s need for imported fuel,” the ATA said.
But at the same time, road funding must remain equitable and sustainable as the nation transitions to a cleaner transport system.
For government, industry, and fleet stakeholders, the ATA’s submission offers a practical pathway to balance climate goals, user equity, and long-term infrastructure funding. The message is clear: plan now, implement later—but do it nationally, and do it right.
