Tesla Calls for National Road User Charge on All Light Vehicles

Tesla Australia has submitted a detailed proposal to the federal Senate Select Committee on Productivity, arguing that any future national road user charge must apply across all light passenger vehicles rather than targeting electric vehicles alone.

Under current arrangements, road maintenance is largely funded through federal fuel excise, which adds over 50 cents to every litre of petrol and diesel sold at the pump. Because electric cars consume no fossil fuels, EV drivers do not pay fuel excise, prompting ongoing debate among policymakers about how to sustainably fund transport infrastructure as vehicle electrification accelerates.

In its formal submission, the electric vehicle maker warned that creating a distance-based road user fee purely for zero-emission models would create an uneven playing field and distort consumer choices. Instead, Tesla recommends a phased-in per-kilometre rate based on actual road maintenance costs that covers all new passenger vehicles, regardless of whether they run on petrol, diesel, hybrid systems or battery power.

Tesla also proposed retaining the existing fuel excise alongside the new per-kilometre scheme, arguing fuel excise serves an ongoing purpose in reflecting the pollution and environmental impacts of burning fossil fuels. To prevent sudden shocks, the company suggested grandfathering existing petrol and diesel cars, starting rates at fractions of a cent per kilometre, and introducing price caps or lower multiplier bands for motorists in regional and outer-suburban communities who must travel longer distances.

The company acknowledged that introducing road charges across the wider fleet would meet justifiable community pushback, but argued that a universal distance fee would promote national transport productivity far better than an EV-only penalty.

What this means for your novated lease

For Australian employees weighing up salary packaging options, this submission is an industry proposal rather than active government policy, meaning nothing changes today.

• No surprise fees right now: There is currently no federal distance-based road user charge on passenger EVs, following the High Court decision that struck down state-level charges in late 2023. You do not need to budget for a per-kilometre levy in your running costs today.
• Lease running cost packaging: Even if a federal per-kilometre scheme eventually emerges, vehicle-related taxes and road user fees can typically be bundled directly into your novated lease running budget, allowing you to pay them with pre-tax income alongside charging, insurance, tyres and registration.
• The FBT incentive remains strong: Eligible electric cars delivered below the luxury car tax threshold continue to benefit from complete exemption from fringe benefits tax. Even if road user charges are revisited down the track, packaging an EV still delivers significant upfront tax savings and much lower day-to-day energy running costs compared to petrol or diesel alternatives.