Thats right Ppl, they want your older car off the road forever – Mick Raven
Electric vehicle owners will pay less tax after a major change to registration in the territory where petrol and diesel cars will be banned by 2035
- The car registration plan will charge drivers based on low emission levels
- ACT Chief Minister Andrew Barr said incentives work towards zero emission
- Zero Emissions Vehicle Strategy will see 90 per cent new electric cars by 2030
- The ACT plans to phase out sales of cars with combustion engines by 2035
The ACT has unveiled plans to charge electric car owners less tax and bump up fees on petrol-powered vehicles in a major overhaul of its car registration system.
Under the long-term zero emission vehicle plan to be released on Wednesday, motorists in the ACT will be charged registration based on emissions rather than the weight of their vehicle.
ACT Chief Minister Andrew Barr called the electric vehicle strategy a mixture of ‘carrots and sticks’ needed to encourage the uptake of electric vehicles.
ACT Chief Minister Andrew Barr (pictured) said motorists will be charged based on emissions rather than the weight of their vehicle, in a new zero emissions registration scheme
‘I think if you look at incentives and disincentives – so carrots and sticks – at this point we’re at the offering incentives phase,’ Mr Barr told The Canberra Times.
‘At the moment, their current fuel taxes serve that purpose in that the more fuel-guzzling your vehicle is, the more fuel tax you pay because you’re consuming more petrol.
‘We’ve got four or five different weight band brackets at the moment for registration fees.
‘Instead, we’ll have four or five different emission levels.’
(stock image, electric car plugged into a fast-charging port)
Electric car owners will be pay less tax on vehicle registration than petrol or diesel drivers as registration will be based on emission levels rather than vehicle weight
The complete ban of petrol vehicles in the ACT by 2035 has forced the government to rethink funding for road infrastructure flowing from fuel taxes.
Mr Barr said all governments were looking to change the way vehicle fees and taxes are collected as electric cars replace petrol or diesel-powered vehicles.
‘It’s an issue for every government,’ Mr Barr said.
‘We need a revenue stream but we also want to drive the uptake of EVs. And you’ve got car makers getting out of internal combustion vehicles altogether.’
The chief minister said plans were underway to add electric car fast-charging ports to major highways out of the ACT after he met with NSW Treasurer and Energy Minister Matt Kean.
The registration and road user charge policies are unlikely to be fully in place for several years despite Mr Barr’s hopes the new scheme would be developed in six to 12 months.
The ACT already offers electric car drivers free registration until June 30, 2024 and has projected 80 to 90 per cent of new vehicles sold in the territory will be electric by 2030.
The uptake of low-emission cars has forced governments to rethink road infrastructure revenue as current funding flows from fuel-based taxes (stock image, motorist filling their car with petrol in Surry Hills, Sydney)
Between 18,000 and 20,000 new electric vehicles a year are needed to reach the 2030 sales target.
Mr Barr said thousands of extra cars are needed and persuading major vehicle manufacturers to have them available in the ACT was imperative.
Major car manufacturers including Volvo, Ford, Honda and General Motors have all announced plans to phase out building internal combustion passenger models over the next 15 years.