Geelong MPs’ support sought for zero-emission vehicle tax

GEELONG region crossbench MPs’ support will be in demand as the state government seeks to tax drivers of zero-emission vehicles within weeks.

If passed, a driver using an electric or other zero-emission vehicle for 20,000km annually would pay $500.

The government wants to recoup lost revenue, with electric vehicle uptake expected to grow to 26 per cent of car sales in Australia by 2030.

Currently about 42.7c from every litre of unleaded petrol and diesel fuel sold goes to the federal government, some going to road maintenance.

The tax is expected to be voted on soon in the state upper house after passing the lower house last week.

The bill is tied to the state government’s $100m zeroemission vehicle package, which has already committed to 20,000 subsidies of $3000 for new zero-emission vehicles costing less than $69,000, and $19m to build more charging infrastructure on major highways, at key tourist attractions and other metropolitan and regional locations.

Labor holds 17 of the 40 upper house seats and may need the support of three of 11 crossbenchers to pass the bill.

Torquay-based MP Stuart

Grimley, whose Derryn Hinch’s Justice Party holds two crossbench votes, said he was undecided on the bill.

“There’s benefits that are being put to us by the Treasurer that for every dollar they are receiving they are putting back $3 into (the zero-emission vehicle) system,” he said.

He said the party was yet to see evidence of how zero-emission vehicles produced a “net result” of reducing emissions, given minerals needed to be mined to produce batteries.

Mr Grimley said the party was being “heavily lobbied” and would consider how the state’s electricity grid would cope with electric vehicle demand before deciding.

Geelong-based Animal Justice Party MP Andy Meddick said he would consider supporting the tax and wider support package. “It’s not a user charge on its own any more, it’s linked to the government’s climate change policy,” he said.

The zero-emission vehicle tax — expected to be 2.5c/km for electric and other zeroemission vehicles, and 2c/km for plug-in hybrid-electric vehicles — is tipped to raise $30m over four years.

Crossbench MP Fiona Patten has said she would support the bill if the right incentives for zero-emission vehicle ownership were introduced.