Our favourite mistake
A teeny error by Government MPs means a much better deal for PHEV drivers
Minister of Transport Simeon Brown has confirmed a further-reduced Road User Charge (RUC) rate for plug-in hybrid electric vehicles (PHEVs).
When the EV-RUC kicks in on April 1, PHEVs will cost $38 per 1000km, a significant reduction from the original proposal and exactly half the rate of pure- electric vehicles (BEVs), which remain at $76/1000km.
Rather entertainingly, it’s all based on a mistake. The Government had argued PHEVs should be set at $53/1000km, a 30 per cent discount on what an equivalent diesel vehicle would pay.
Labour and the Motor Industry Association (MIA) lobbied for $38/100km, arguing that a 50 per cent discount was more appropriate for part-petrol, part-electric PHEV technology.
They put the amendment
to the Select Committee, expecting it to be voted down by the Government majority. Instead, the committee voted it through unanimously . . . in error.
Transport Minister Brown was aware of the mistake and said the Government was open to the idea of keeping the change. So that’s where RUC will now stay for PHEVs.
MIA chief executive Aimee Wiley says: “We are pleased that the Select Committee has heard these submissions and recommended a reduced rate, which the Government has accepted.
“Based on average fuel consumption of new petrol hybrid vehicles sold in the last two years, MIA analysis showed that at the initial proposed RUC rate, a PHEV would pay 70 per cent more than an equivalent hybrid petrol vehicle, and a BEV would pay 95 per cent more.
“This would unfairly disadvantage owners of PHEVs, whose battery range can vary according to model and age, and potentially discourage the uptake of these low-emissions vehicles and undermine progress to reduce transport emissions.”