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Federal Government Elevates National Road‑User Charge, Sets Options Paper for September Meeting

Treasurer Jim Chalmers reports conceptual support from a Canberra summit for a phased shift from fuel excise.

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Overview

  • Federal Treasury will present an options paper to state and territory treasurers on 5 September to examine models, rates and timing.
  • No final design is settled, with scenarios under review that include a per‑kilometre charge for all vehicles and a longer‑term replacement of the fuel excise.
  • Falling fuel‑excise revenue as vehicles become more efficient and EV uptake grows is prompting a rethink of how road use is funded.
  • A High Court ruling that voided Victoria’s per‑kilometre EV levy leaves states unable to impose such charges, though NSW has flagged a 2027 scheme if no federal plan emerges.
  • Federal heavy‑vehicle charging trials have completed Phase 3, and a staged rollout beginning with trucks is among options being discussed, as stakeholders caution against an EV‑only fee.