Summary
- Liberal senator Bridget McKenzie is considering implementing a road user charge on electric vehicle owners due to declining fuel excise impacting road repair budgets
- McKenzie is developing the Coalition’s transport policy for the next election, which may include plans for electric vehicles
- The government is facing pressure from motoring groups to address the declining fuel excise take as EVs become more popular
- McKenzie has previously discussed the policy challenges of road user charges and the importance of contributing taxes for road maintenance
- McKenzie stated that Australia would not ban Chinese-made EVs, despite concerns raised by Nationals colleague Barnaby Joyce about technology being exploited by totalitarian states for malicious purposes.
Article
Liberal Senator Bridget McKenzie has indicated that the Coalition government may impose a road user charge against owners of electric vehicles due to concerns about decreasing fuel excise impacting road repair budgets. However, she also stated that the Coalition would not follow the US in banning Chinese-made EVs, which contradicted earlier comments from Nationals colleague Barnaby Joyce. McKenzie mentioned that she is developing the Coalition’s transport policy ahead of the next election, which will include plans for electric vehicles. Despite not ruling out a road user charge for EV owners, McKenzie criticized the current government for not taking action on the issue.
The government has faced pressure from motoring groups to address the declining fuel excise take as sales of EVs and hybrid vehicles have increased. McKenzie has often discussed the policy challenges surrounding road user charges, stating that the government should not rule out such charges when tied to fuel excise and efficiency standards. In a speech last year, she highlighted the importance of equity in contributing taxes for road maintenance. The Biden administration recently proposed new rules that would effectively ban Chinese-made vehicles from US roads due to concerns about potential spying or sabotage through software and digital connections.
McKenzie’s stance on banning Chinese-made EVs contradicted comments from Barnaby Joyce, who criticized the government for not following the US move. Joyce raised concerns about the potential security risks of Chinese-made vehicles following last week’s Hezbollah members’ pager explosions in Lebanon. He also expressed worry about Chinese-made solar heaters installed on roofs in Australia. Foreign Affairs Minister Penny Wong responded to these concerns by acknowledging the security position of Israel and calling for a ceasefire in Lebanon to prevent further escalation of violence.
Despite concerns raised by Joyce about the security risks of Chinese-made vehicles, McKenzie maintained that the Coalition’s plan does not involve banning EVs. She emphasized the importance of addressing the declining fuel excise revenue due to increasing EV adoption. McKenzie has advocated for a comprehensive policy discussion on road user charges that considers fuel excise, efficiency standards, and equity in tax contributions for road maintenance. The government continues to face pressure from motoring groups to address the funding gap caused by the shift towards electric and hybrid vehicles.
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