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Labor’s $363 EV Tax Proposal is Bad for the Future of Australia

blhouston • 27 Jun 2025 19:45

The story goes that electric vehicle drivers are getting a free ride. Hard working petrol and diesel car owners pay for the roads we drive on through fuel excise.


The story goes that electric vehicle drivers are getting a free ride. Hard working petrol and diesel car owners pay for the roads we drive on through fuel excise.

The truth is a little different. According to the Parliamentary Budget Office only about 30% of fuel excise goes to maintaining road infrastructure, the rest goes into the general coffers.

The petrol excise (50.8 cents per litre) should be looked on as a “sin tax”. Drivers are paying for pumping the remnants of burned hydrocarbons into our atmosphere. A study by Melbourne Climate Futures indicates that vehicle related pollution may cause over 11,000 premature deaths a year in Australia.   

Why are we de-incentivising the transition to clean technologies over dangerous legacy tech?  

Instead of additional taxes for EVs, many countries have taken the positive steps to incentivise the move away from ICE vehicles:

CountryIncentive TypeApprox. Amount (AUD)
SingaporeTax rebate on EV purchase~$46,000 AUD
RomaniaPurchase grant (w/ scrappage)~$18,700 AUD
GermanyEV subsidy (federal + manufacturer)~$14,500 AUD
United StatesFederal tax credit~$11,300 AUD
FranceBonus écologique~$9,700 AUD
CanadaFederal + Quebec provincial rebates~$12,400 AUD
ChinaPurchase tax exemption (per car)~$6,300 AUD
NorwayTax exemption (VAT + import duty)Variable – up to ~$20,000 AUD equivalent in savings


Instead of looking backwards, Australia needs to get on board for a cleaner, healthier, more energy efficient future for transport.


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