Impact on Suburban Families
Proposed electric vehicle taxes by the Federal and NSW Governments could significantly reduce EV uptake in Australia's outer suburbs, new research indicates. The taxes are expected to commence as early as next year, introducing a 3 cents per kilometre road user charge.
Julie Delvecchio, CEO of the Electric Vehicle Council, stated, "Australians are turning to electric vehicles to escape rising petrol costs, but a new road user charge could hit drivers with around $353 a year in extra costs, wiping out the very savings driving this shift."
Research conducted by Professor Simon Jackman from Sydney University reveals that 28 per cent of potential EV buyers would be dissuaded by this road user charge. The study identifies that working families aged 30 to 55 in outer suburbs, who are most eager to purchase EVs, would be hardest hit.
Record EV Sales at Risk
In February 2026, battery EV sales rose by 95.9 per cent year-on-year, and total EV market share reached a record high of 18.6 per cent. This growth could be jeopardized by the proposed taxes, particularly in electorates like McMahon, represented by Energy Minister Chris Bowen, and Rankin, home to Treasurer Jim Chalmers.
The Minns Government is planning to implement the EV tax plan, potentially starting next year. Meanwhile, the Albanese Government is also actively considering its version of the tax.
Professor Jackman noted that drivers aged 30-55, particularly those in outer suburbs, would be most discouraged from purchasing EVs following the introduction of the road user charge. Older drivers and those in wealthier areas are less affected.
Australians are already struggling with higher fossil fuel prices due to global events like the Iran War. This new tax could impose an additional financial burden on the average driver.
Energy Minister Chris Bowen's electorate includes suburbs like Kemps Creek, where 33% of likely EV buyers are discouraged by the proposed charge. In Brisbane, Treasurer Jim Chalmers' electorate, Parkinson, shows similar trends.
The nation's Treasurers have pledged that reforms should not deter the uptake of electric vehicles. However, this research suggests that the proposed charges could do just that, turning off interest in EVs in key areas.
Last updated: 9 April 2026, 3:04 am
