Australia will be an EV “laughing stock” as NSW rules out distance-based tax… for now

The NSW Government says Australia will be an EV “laughing stock” if Victoria’s distance-based electric vehicle tax is introduced, as it rules out following suit – at least for now.

As NSW Treasurer Dominic Perrottet unveiled the earliest stages of the state’s EV plan, which promises to be a “holistic approach” to EV sales, incentives and taxes, the state’s Transport Minister has used some of the strongest language we’ve heard to date, essentially hammering Victoria’s proposed 2.5cm-per-kilometre EV charge as threatening to turn Australia into an international laughing stock.

“What we will do is make ourselves the laughing stock of the world,” Constance told the Sydney Morning Herald “The rest of the world will have moved to full manufacturing of electric vehicles and here we are sort of struggling.”

It’s the firmest offical rebuke of the distance-based tax system we’ve seen to date, but it’s also worth noting NSW hasn’t actually ruled out introducing a similar system. The key difference, though, is when.

Mr Constance says introducing an EV surcharge before electric vehicle take up is around 50 per cent would hold-back the industry, with the NSW Treasurer also flagging and eventual “drop-dead date” for a total switch to EVs.

While Victoria has taken heat over its EV tax plan, the state has also announced some nation-leading incentives to encourage EV ownership.

Premier Daniel Andrews has set a target to make half of all vehicles zero emissions by 2030, as Victoria announces a $3k EV subsidy – the centrepiece of a $100m package that will see it leading the charge to a zero-emissions future. 

The government says the package will both encourage the uptake of EVs and improve charging infrastructure across Victoria, promising the moves “will encourage more drivers to consider purchasing a zero-emissions vehicle”.