Fuel tax modernisation more urgent than ever

The AAA congratulates the Australian Government for its handling of the fuel supply and security impacts of the war in Iran. However, the AAA urges the Government to now get on with progressing its mooted Road User Charge, as the events of recent months make this more urgent, not less.

The AAA supports the Government's objective of modernising Australia's vehicle fleet and recognises that the war's fuel price shock has done much to drive uptake of electric vehicles (EVs) across Australia.

But if this shift is to be sustained, Australia's re-charging network requires significant investment, as range anxiety and a lack of confidence in public EV re-charging continue to be the major impediments to most Australians' adopting EV technology.

The AAA expects that across much of Australia re-charging investment will continue to require government support, and that this creates the opportunity to modernise the way Australians pay for transport infrastructure.

The AAA has long supported the introduction of a Road User Charge on vehicles no longer adequately captured by Australia's fuel excise regime, and the AAA believes Road User Charging revenue should in the short-term be used to co-invest in re-charging infrastructure.

In the wake of the High Court's 2023 ruling against the constitutionality of Victoria's road user charge on EVs, the onus now sits with the Commonwealth to modernise Australia's motoring taxes so that all Australians using public roads, help pay for them.