“It should not be rushed:” Bowen says road user charge will only happen “when it is ready”

Federal Energy and Climate Minister Chris Bowen has emphasised that any introduction of a road user charge on electric vehicles (EVs) will only occur when the policy is fully developed and ready for implementation. This statement comes amid growing calls from major motoring groups for a levy of three cents per kilometre on EVs, aimed at offsetting declining fuel excise revenues as the market shifts away from petrol and diesel vehicles. Bowen acknowledged the need for such a charge in principle but stressed that it must be carefully calibrated to ensure fairness across all vehicle types and avoid discouraging the ongoing transition to electric transport. The push for a road user charge is driven by concerns over the erosion of government revenue from traditional fuel taxes, which have been declining not only due to the rise of EVs but also because of improved fuel efficiency standards for petrol vehicles and the increasing popularity of hybrids. Bowen highlighted that this is a complex issue that should not be rushed, describing the road user charge as an important policy goal that requires thorough consideration to get right. He suggested that an arbitrary deadline for implementation would be counterproductive, signalling a preference for a measured approach that balances fiscal needs with environmental objectives. The surge in EV sales, particularly in March, has been attributed to heightened fuel prices linked to geopolitical tensions in the Middle East, which have disrupted global oil supplies. This spike in demand is expected to persist, with manufacturers reporting extended waiting times and committing to import larger volumes to meet consumer interest. While the EV industry accepts that some form of road user charge is inevitable, it advocates for a system that treats all vehicles equitably and supports the broader adoption of electric technology rather than penalising it. Beyond the EV debate, some industry figures have called for the removal or capping of fuel excise rebates currently enjoyed by sectors such as mining. Andrew Forrest, head of Fortescue Metals Group, has argued that ending these rebates would incentivise the adoption of battery-powered equipment, aligning with broader decarbonisation goals. Similarly, analyst David Leitch has suggested that the coal industry, which has increased diesel consumption, should lose its rebate, or at least face a limit on the amount received. These perspectives highlight the wider challenges governments face in balancing revenue, environmental targets, and industrial competitiveness in the transition to cleaner energy.