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Australia

Tesla urges Australia to apply a road user charge to all vehicles alongside fuel excise

By Eve

In its submission to the federal Select Committee on Productivity in Australia, Tesla recommended a distance-based road user charge, set in cents per kilometre, for all vehicles, to sit alongside the current fuel excise. The excise adds around 51 cents to each litre of petrol and diesel sold, and Tesla argues it is not seen as a usage fee and does not discourage unnecessary driving. Tesla acknowledged there would be "justifiable" community pushback, while experts have separately floated a charge of three cents per kilometre as fairer funding as electric and hybrid vehicles use less or no fuel.

Why it matters

A per-kilometre charge applied to every vehicle would change the running cost case for EV drivers, which could influence charging demand and utilisation assumptions in site business cases. CPOs and bidders should track the committee process, as the final design and timing could affect pricing strategy and long-term revenue forecasts.

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Original title
“Tesla recommends government implement road user tax for everyone”
Published
2 November 2026

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