Our next steps
What we asked
In our proposal we asked how we should levy electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) in the future.
What you told us
- More than half of submitters agreed that EVs and PHEVs should remain classed as petrol vehicles
- A noticeable portion of submitters supported subsidising EVs and PHEVs through the levy system in recognition of their environmental benefits
- A significant number of submitters indicated that risk-rating for EVs and PHEVs should be the main factor for determining how their levy fees are set
- Distance-based levying is often proposed as an alternative approach, with many submitters recommending that the way diesel vehicles are levied could apply to EVs and PHEVs
- General feedback is that EVs and PHEVs use the same roads as other vehicles and present the same accident risks.
It appears there was some misunderstanding about what our consultation question was asking in this proposal. Many submitters, who agreed with the proposal, also told us the current subsidy EVs and PHEVs receive due to their vehicle classification, is unfair.
We (along with MBIE) will consider all submissions received for this proposal to inform our future levying approach for EVs and PHEVs.
We'll share the findings of this exploratory work as part of the 2020 levy consultation.
Our original proposal
We're currently levying electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) as if they're petrol vehicles.
Because they don’t use petrol, EVs pay no petrol levy and their only ACC levy is paid through their rego. Under the current rates, this equates to a $77 shortfall per vehicle which is essentially paid for by other vehicles.
We propose to leave this as is for now. This means these vehicles continue to pay a lower Motor Vehicle levy as they either pay no petrol charge or a reduced charge because they use less petrol.
This would be reviewed in two years' time.