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
More in Government charges
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How we work it out, and our sources
Weekly cost = the car's energy use × 250 km × your electricity or fuel price, with 90% of charging at home. Prices are list prices at October 2026; check with the dealer.
- Electricity: 2026–27 default rates (AER, Victorian Default Offer, state retailers). Public charging: Sydney network prices, July 2026.
- Petrol and diesel: ACCC capital-city averages, 21 October 2026.
- Cars: maker figures via CarExpert, Drive, CarsGuide and EV Central. Plug-in electric range is taken as 80% of the claim.
- Servicing: published capped prices; marked as an estimate where not yet published (CarExpert comparison).
- Tyres: an EV set lasts about 35,000 km, a petrol or hybrid set 50,000 km (RACV); prices from Gridly.
- Home charger: about $2,000 installed ($1,000–$3,000). Novated leases: PwC summary.
Printed from EV Pick · evpick.com.au. Prices and costs are estimates; check with the dealer. © 2026 EV Pick (T. Crouch). For personal use only; not to be copied, republished or sold without permission.