A fair and sustainable road user charge

This EV Strategy ensures NSW has a fair and sustainable road user system.

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.

The NSW Government is establishing a fair and sustainable road user system, ensuring that all drivers pay for their fair share of road use.

A road user charge of 2.5 cents per km (indexed to CPI) 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. 

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

Currently, the average petrol and diesel passenger vehicle owner pays approximately $622 a year in fuel excise. Under NSW’s new road user system, EV drivers will pay on average $315 annually.

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