Australia should move ahead with "low-risk" RUC for EVs

Australia's plan to introduce road user charging (RUC) for electric vehicle (EV) drivers is a "low-risk" option which should be embraced.

That was the message from Paul Fletcher, former minister for communications, urban infrastructure, cities and the arts in the country's Liberal party.

He was speaking at a roundtable, hosted by Compass IoT, which brought together federal and state policymakers, transport leaders and industry experts to discuss how Australia could implement a fair and digital RUC system.

Fletcher insisted: “Don’t let the perfect be the enemy of the good." 

Australian treasurer Jim Chalmers has said the government aims to introduce RUC for EVs, charging drivers directly for their road use, rather than indirectly through another form of taxation.

This move follows the New Zealand government's decision to introduce a national RUC system in 2027.

Fletcher added: "If there’s an opportunity to get a reform underway where politicians know it’s only going to affect about 2% of vehicles on the road - so relatively low impact - and is principally about equity…that’s about as low-risk as you’re going to get.” 

Professor Michiel Bliemer, from the Institute of Transport and Logistics Studies at the University of Sydney, said that fairness of RUC must be emphasised.

“We need to make it very clear that this is not charging more,” he explained. “This is replacing existing taxes that are currently in place and are no longer viable or sustainable into the future.”

Community acceptance and trust were identified as critical to RUC’s success during the roundtable. 

Measures such as ensuring privacy through geo-masking and anonymisation - plus clear explanation of where the RUC money was going - are also going to be vital.

Connected vehicle data could support RUC, with more than 1.2 million connected vehicles already transmitting the necessary data in Australia.

But Silje Troseth, president of ITS Australia, warned: “If the technology glitches or doesn’t work, it’s very easy to lose social acceptance, which will be crucial for success."

“If those digital experiences aren’t enabled, then you’re left with clunky implementations which lead to things like lost revenue,” commented Angus McDonald, co-founder of Compass IoT.