Tesla and Hyundai oppose NSW EV road tax, warn electric car owners would subsidise hybrid drivers
By Eve
Tesla and Hyundai have submitted objections to a proposed New South Wales EV road tax during a parliamentary inquiry, arguing it would penalise electric vehicle owners more than hybrid drivers. Tesla calculated that a Toyota Yaris Hybrid driving the Australian average of 11,025 km annually contributes 249.25 dollars in fuel GST and excise, meaning any EV road user charge above 1.62 cents per kilometre would see EVs paying more tax than comparable petrol hybrids. Hyundai described the outcome as perverse, while most submissions to the inquiry have opposed the tax, with motoring group NRMA a notable exception.
Why it matters: A state based road user charge that disadvantages EVs relative to hybrids could slow fleet electrification and undermine the business case for charge point operators relying on growing EV adoption. The inquiry outcome may influence policy settings in other Australian states considering similar levies.