A Road User Tax on Electrical Vehicles (EV) ignores the savings delivered to the Australian economy through avoiding tail pipe emissions, pollution and associated health impacts.
The transport sector is Australia’s third biggest emitter, responsible for approximately 22% of national emissions. Increasing emissions and transport-related air pollution is contributing to worse health outcomes for people living in Australia, and exacerbating health inequities across the country.
After a period of steady growth, revocations of government incentives for EVs, coupled with misinformation impacting buyers perceptions of EVs have led to a recent stall in sales. As advocates for climate and health, road use charging risks further disincentivising EV uptake at a crucial time.
Michelle Isles, CEO of peak body the Climate and Health Alliance said: "At a time when we need to be accelerating electric vehicle adoption to meet climate and health goals, a road user tax risks sending the wrong signal to Australians. This policy risks punishing people for making cleaner, healthier transport choices".
"Australia’s most vulnerable communities already bear the brunt of transport pollution. Disincentivising electric vehicles now will only deepen existing health and environmental inequalities."
The Climate and Health Alliance commissioned leading Australian experts on air pollution to tally the health costs through its Healthy Transport work; “traffic-related air pollution is linked each year to 11,000 premature deaths, 19,000 hospitalisations due to cardiovascular and respiratory disease, and 66,000 asthma cases in Australia”. Modelling from the US shows traffic-related air pollution has far-reaching health impacts, placing a significant burden on the healthcare system and affecting productivity (Figure 2).
The report also captured growing evidence of the impact of air pollution on human cognition including how increased exposure to ambient air pollution is linked to impaired neurodevelopment in children and that exposure to traffic-related air pollution may increase the risk of dementia among people with mild cognitive impairment.
Introducing a road user tax on EVs ahead of broader transport reform risks locking in short-term thinking at the expense of long-term sustainability. With the Federal Government’s Transport and Infrastructure Net Zero Roadmap and Action Plan yet to be released, now is not the time to introduce policies which pose a threat to Australia’s climate goals and health outcomes. Without a clear national strategy for zero-emissions transport, measures like this tax threaten to undermine broader goals for decarbonisation, health equity and economic prosperity.
"Australia needs a long-term vision for sustainable transport. Rushing through a road user tax now risks undermining confidence in EVs just when we need people to embrace them.
"We recognise the need for long-term road funding reform, but this tax is premature. Smart policy should support the transition – not penalise it.”
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