EV Will EVs pay a per-km road charge?
Not yet, and it's still being argued about. NSW has legislated a charge of about 3.1c per km for EVs (2.5c for plug-ins) from 1 July 2027, but the High Court struck down Victoria's similar charge in 2023, so NSW may not be able to collect it. A national charge has been discussed for years, but was left out of the May 2026 budget. At 3.1c, an EV driving 250 km a week would pay about $402 a year, less than the roughly $593 in fuel excise a petrol SUV pays.
Why governments want EVs to pay
Petrol and diesel drivers pay fuel excise on every litre, about 54c a litre in 2026, and that money helps pay for roads. EV drivers buy little or no fuel, so they pay almost no excise. As more people switch, that revenue shrinks, and governments are looking at a distance-based charge instead. Almost everyone, including EV owner groups, agrees EVs should pay their share; the arguments are about how much, how it's worked out, and when it starts.
Where things stand (October 2026)
- Victoria: brought in 2.8c/km for EVs and 2.3c/km for plug-ins in 2021. The High Court ruled in October 2023 (Vanderstock v Victoria) that it was an excise, which only the federal government can charge, so it was scrapped.
- NSW: a charge of 3.095c/km for EVs and 2.476c/km for plug-ins (2026–27 rates, rising with inflation) is set to start on 1 July 2027, or earlier if EVs reach 30% of new car sales. NSW is still assessing what the High Court ruling means for it, and a NSW parliamentary inquiry has examined the scheme.
- National: federal and state treasurers agreed in 2025 to work on a national charge designed "not to impede EV uptake". In April 2026 the federal transport minister said it "may not be the time for it right now", and the May 2026 budget didn't include one. Any national charge would need new federal laws, and no bill has been released.
- Other states: no EV distance charge.
What it would cost you
Driving 250 km a week (13,000 km a year). Fuel excise at 53.7c a litre.
| Vehicle | Per km | Per year | Per week |
|---|---|---|---|
| Electric car (NSW proposed charge) | 3.1c | $402 | $7.74 |
| Plug-in hybrid (NSW proposed, 80%) | 2.5c | $322 | $6.19 |
| Petrol SUV using 8.5 L/100 km (fuel excise) | 4.6c | $593 | $11.41 |
| Small petrol car, 6.5 L/100 km (fuel excise) | 3.5c | $454 | $8.73 |
| Hybrid using 4.5 L/100 km (fuel excise) | 2.4c | $314 | $6.04 |
Even with the charge, an EV would still be far cheaper to run than a petrol car, because charging at home costs much less than fuel. Our running-cost figures don't include the NSW charge yet, because it isn't in force; we'll add it if it starts.
Do heavier EVs damage roads more?
EVs are typically 200–400 kg heavier than a similar petrol car because of the battery, and that has led to claims they wear out roads faster. The evidence is more nuanced:
- Road engineers have long used a rule of thumb from 1950s US road tests: wear rises with the fourth power of axle weight. By that rule, a 2-tonne EV causes roughly twice the wear of a 1.7-tonne petrol car.
- But "twice" a tiny amount is still tiny. By the same rule, one heavily loaded truck axle does thousands of times more damage than a car axle, so trucks and buses cause the vast majority of road wear.
- Modern pavement engineers say the fourth-power rule is a poor predictor for today's roads and that a few hundred kilograms on a passenger car makes little measurable difference to road life.
- Where weight does matter is in fairness: under a flat per-km charge, a small EV would pay the same as a 3-tonne electric SUV. That's why some groups want weight included.
The options being debated
- Flat per-km charge for EVs (the NSW model): simple, but ignores weight and taxes EVs while petrol cars keep paying excise.
- Distance and weight charge for every vehicle: favoured by the Australian Electric Vehicle Association. Every car pays per km scaled by weight, while fuel excise stays on petrol and diesel as a pollution tax. New Zealand's road user charges use distance and weight.
- Delay until EVs are a bigger share of the fleet: the federal government's position so far, to avoid slowing the switch.
- Higher registration for EVs: simpler to collect, but doesn't reflect how far you drive.
What it means if you're buying now
Plan for a possible charge of around 3c/km (about $7.74 a week at 250 km) in NSW from mid-2027 and possibly nationally later. It narrows the running-cost gap but doesn't close it for most drivers. If you drive long distances, a heavier EV could pay more under a weight-based scheme. For other state charges see EV stamp duty, rego and road charges by state.
Common questions
Do EVs pay a road user charge in Australia?
Not yet. Victoria's charge was struck down by the High Court in 2023. NSW plans 3.095c per km for EVs from 1 July 2027, but is still assessing whether it can legally collect it, and there is no national charge.
How much would the EV road user charge cost?
At NSW's proposed 3.095c per km, driving 250 km a week costs about $402 a year, or $7.74 a week. A petrol SUV pays about $593 a year in fuel excise for the same driving.
Do electric cars damage roads more?
Slightly, because they're heavier, but cars cause very little road wear overall. Heavy trucks cause the vast majority of it. Engineers say a few hundred extra kilograms on a passenger car makes little measurable difference.
Why don't EV drivers pay fuel excise?
Fuel excise is charged per litre of petrol and diesel. EVs run on electricity, so they don't pay it, which is why governments are designing a distance-based charge to replace it.
More guides
How we work it out
Weekly cost is the car's claimed energy use (kWh per 100 km) × your distance × your electricity price. "Per week" figures on this site assume 250 km a week with 90% of charging at home. Petrol comparisons use the fuel use and price you choose. Prices are list prices at October 2026 and change often; check with the dealer.
- Electricity: 2026–27 default or regulated flat rates from the AER Default Market Offer (NSW, SE QLD, SA), Victorian Default Offer, Aurora Energy (TAS), Jacana Energy (NT), Synergy (WA) and ActewAGL (ACT).
- Public charging: Sydney survey of Chargefox, Evie, NRMA, Tesla and BP Pulse prices, July 2026.
- Car specs and prices: manufacturer figures as published by CarExpert, AEVA EV fact sheets, Drive and EV Central's car guide. Some prices are the publisher's estimates; check with a dealer.
- Servicing: published capped-price schedules (BYD Sealion 7, BYD Seal, Geely EX5, Jaecoo J5 EV, Kia EV5, Zeekr 7X). Tesla has no fixed service schedule and CarExpert's EV servicing comparison. Where a model's pricing isn't published yet we use the brand's nearest model and mark it as an estimate.
- Tyres: we assume an EV set lasts 35,000 km (RACV says 20,000–40,000 km; independent wear tests of mainstream EV tyres show about 37,000–49,000 km). Replacement set prices (mid-range brands, fitted) from Gridly's 2026 EV tyre cost guide.
- Petrol and diesel: ACCC average retail unleaded and diesel prices in each capital city, 21 October 2026 (ACCC weekly fuel price monitoring).
- Plug-in hybrids: prices, battery sizes and claimed electric range from CarExpert, Cars24, Zecar and The Beep. Real-world electric range is taken as 80% of the claim; plug-ins charged at home each night are assumed to do up to 85% of driving on electricity. Petrol use with a flat battery is our estimate from reviews where makers don't publish one.
- Diesel utes and SUVs: claimed combined fuel use and prices from CarExpert, 4X4 Australia and CarSauce. The HiLux automatic, Prado and Mazda CX-60 D50e are 48-volt mild-hybrid diesels; their small battery assists the engine but can't drive the car on its own.
- Petrol mild hybrids (Suzuki Swift Hybrid, Mazda CX-60 G40e): claimed fuel use and prices from CarExpert.
- Hybrids: claimed fuel use, prices and capped-price servicing as published by CarExpert and CarsGuide. Petrol and hybrid tyres usually last 40,000–60,000 km (RACV); we use 50,000 km.
- Home chargers: typically $1,000–$3,000 installed, about $2,000 typical (What's the Damage, October 2026).
- Novated lease rules: PwC summary of the May 2026 FBT changes.
Printed from EV Pick · evpick.com.au. Prices and costs are estimates; check with the dealer.