A fair and sustainable road user charge

A future distance-based road user charge will ensure all drivers are paying for their share of road use – regardless of the type of vehicle they drive.

A road user charge will apply to eligible EVs from 1 July 2027 or when EVs make up 30 per cent of all new vehicle sales, whichever comes first.

Plug-in hybrid EVs will be charged a fixed 80 per cent proportion of the full road user charge to reflect their vehicle type.

The road user charge rate is indexed to consumer price index each financial year.

The road user charge rate for the 2024-25 financial year will be:

  • 2.906 cents per kilometre for a battery EV or hydrogen fuel cell EV
  • 2.324 cents per kilometre for a plug-in hybrid EV

Note: The decision in Vanderstock v. The State of Victoria (2023) (“Vanderstock”) determined that the Victorian Government’s Zero and Low Emission Vehicle Distance-based Charge Act was invalid.

The NSW Government is working to assess the potential implications of the decision for NSW’s electric vehicle road user charge.

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