New push to replace fuel excise with direct road charges

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By Leith van Onselen

The Australian Automobile Association (AAA) has warned that the amount of revenue that the federal government collects from fuel excise is at risk to the tune of $20 billion because of a growing switch to electric and high-efficiency vehicles, and has urged an inquiry into the adoption of road-user pricing. From The AFR:

While proponents of electric vehicles are calling for subsidies to encourage drivers to buy them, there has been little discussion on what to do about the fact such cars don’t generate any revenue for Treasury, which collects 40¢ for every litre of fuel sold in Australia.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.