Federal Financial Relations Review – Electric Vehicles

PIAC responded to the Federal Financial Relations Review Panel’s draft report, specifically the its recommendations for Electric Vehicles (EV).

PIAC does not support the draft report’s recommendation to introduce a new tax specifically for EVs using a distance-based charge. The recommendation is based primarily on the concern EV owners do not pay fuel excise. This framing of the problem conflates ‘fossil’ and ‘liquid’ fuels, fails to acknowledge the broader economic, environmental and health benefits that a move to emission-free transport will bring, and prematurely assumes materiality of cross subsidy.

PIAC highlights the evidence of the economic, environmental and health benefits of EVs and recommends this evidence be considered in the final report to provide a more holistic understanding of the broader benefits of EVs that offset any avoided fuel excise.