On 1 July 2021, VicRoads introduced a new road-user charge for registered zero or low-emission vehicles (ZLEV). The Victorian government is the first to introduce a charge for emission efficient vehicles, following ongoing debate across all states about an equitable way to ensure all drivers pay for their share of road usage.
Each time petrol and diesel-powered vehicles fill up at the bowser they pay a fuel excise tax, levied by the Federal government, which helps pay for new roads, road maintenance and infrastructure. Currently, the tax is 43.3 cents per litre for petrol and diesel, and 14.1 cents per litre for LPG[1].
Given most ZLEVs use electricity and not fuel, they have not had to pay the fuel excise tax. The new VicRoads distanced-based charge ensures a more equitable and sustainable road user system.
The new charge varies depending on the ZLEV. Owners of battery EVs and hydrogen-fuel-cell vehicles will pay 2.5 cent per kilometres travelled[2]. Plug-in hybrid vehicles will pay a slightly lower cost of 2.0 cents per kilometres[3] as they will still pay the fuel excise for the petrol component of their vehicle. Conventional hybrid vehicles are exempt from the road-user charge. To give you an idea of cost, based on a battery EV travelling 15,000 kilometres per year, the road-user charge will be $375.
The distance-based charge requires ZLEV owners to self-report their odometer readings to VicRoads. Odometer readings can be entered via the myVicRoads online portal, which will generate a bill based on the reported reading, payable quarterly, half-yearly or annually.
To make it easier for ORIX fleet customers whose vehicles are registered under ORIX, we will help you manage the odometer-reading declarations, process payment/s on your behalf and recharge to your business.
You may be asking if any other states are considering a road-user charge for ZLEVs. At time of writing, SA and NSW are both planning to introduce a charge in July 2022[4] and 2027[5] respectively. QLD, ACT and NT have not announced any charges, however this may change.
For more information about VicRoads ZLEV road-user charge, please visit VicRoads or call your ORIX Account Manager.
If you are unable to use the above listed VicRoads’ link, please copy and paste the URL below into your internet browser: https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge
[1] https://www.ato.gov.au/Business/Excise-on-fuel-and-petroleum-products/Lodging,-paying-and-rates—excisable-fuel/Excise-duty-rates-for-fuel-and-petroleum-products/
[2] https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge#ZLEV-costs-and-calculations
[3] https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge#ZLEV-costs-and-calculations
[4] https://www.premier.sa.gov.au/news/media-releases/news/electric-vehicle-road-user-charge-consultation-to-begin
[5] https://www.nsw.gov.au/initiative/nsw-governments-electric-vehicle-strategy/road-user-charge
