NSW dealers are advised that AADA has lodged a submission to the NSW Legislative Council Public Accountability and Works Committee as part of its Review of the Electric Vehicles (Revenue Arrangements) Act 2021 (NSW).
What This Review Covers
In 2021, the NSW Government announced it would introduce a Road User Charge (RUC), indexed annually, from 1 July 2027 or once eligible Zero and Low Emissions Vehicles (ZLEVs) account for 30 per cent of new light vehicle registrations in NSW – whichever occurs first.
The review is considering whether the Act’s policy objectives remain valid and whether the legislation is still appropriate to achieve those objectives. The Committee is due to report to the NSW Parliament by 30 September 2026.
AADA’s Position
AADA recognises the policy rationale for moving to a Road User Charge framework. However, AADA strongly supports a nationally consistent model for the design and implementation of any RUC system. If introduced as planned, NSW would be the only Australian state with a RUC, creating disadvantages for NSW motorists, particularly those living near state borders, and placing local industry at a commercial disadvantage.
AADA is also concerned that introducing a NSW specific RUC could discourage consumers from purchasing a ZLEV.
AADA’s Recommendations to the Committee
In its submission, AADA recommended that the Committee consider the following:
- That the financial and administrative burden for large fleet operators who are involved in large scale transactions be considered and that AADA be consulted on any new IT platforms or systems development that impact dealers.
- New car dealers should be granted an exemption of 7,500 km per vehicle for any dealer owned ZLEV trading stock and/or demonstrator motor vehicle.
- That whilst it is the intention of the NSW Government to pay any revenue collected via the RUC into a Consolidated Fund, it is AADA’s recommendation that any income generated by the RUC be hypothecated to NSW land transport infrastructure and used to invest in robust EV infrastructure in regional NSW.
- That internal combustion engine vehicles are not captured under the RUC program.
Next Steps
AADA will continue to engage with the NSW Legislative Council Public Accountability and Works Committee to advocate for practical and nationally consistent outcomes for NSW dealers.