Is the Coalition planning to overtake Labor and tax rich inner-city EV drivers?

Take road user charging. When all vehicles were driven by internal combustion, it was easy to charge drivers for the upkeep of roads by putting an excise on fuel.

This continues a long history of the court siding with the commonwealth in taxation matters, a history that has resulted in the fiscal imbalance at the heart of Australian federalism. In December treasurers agreed instead to establish a working group to develop options to respond, such as “long‑term options for zero emission vehicles user charging”, according toThis didn’t surprise me, as internal Treasury advertisements in January trying to recruit eager mandarins to the road user charge unit described a zero emissions vehicle tax as an “emerging government priority”.

Will the next election be a duel between Labor’s fuel efficiency standards and the Coalition’s EV tax? Or could Labor neutralise theEV campaign by agreeing to road user charging, whoever wins the election? Either way it would be a fascinating development. It is a little surprising that, having obtained the desired result, the commonwealth has been so flat-footed to respond.

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