Industry groups and infrastructure advocates are renewing calls for Australia to adopt a nationally consistent Road User Charge, following New Zealand’s decision to replace fuel excise with electronic, distance- and weight-based charges for all vehicles.
What was announced in Australia and why it matters
Roads Australia (RA) has added its voice to demands for a federally led RUC framework to be developed and rolled out by 2028. The organisation made the case at the Road User Charge Forum in Sydney, which was hosted by Infrastructure Partnerships Australia.
At the forum RA chief executive Ehssan Veiszadeh said, “We’re not just talking about replacing a tax – we’re talking about rebuilding equity in how we fund the roads Australians rely on every day.” That public statement framed the discussion around fairness and sustainability of road funding as vehicle fleets shift away from petrol and diesel.
The fuel excise has been a key source of revenue for road maintenance and construction. As electric vehicle uptake grows, excise receipts are expected to decline, creating a funding gap for national and local road networks. RA argues a national RUC would protect revenue streams while ensuring road users pay according to use and vehicle impacts.
Proposed design and transition approach
RA proposes a framework that would cover vehicles not currently contributing via fuel excise, with a phased approach starting with electric vehicles and heavy vehicles. The suggested model would operate alongside existing fuel excise and state-based charges during the transition period, allowing revenue to evolve as EV adoption increases.
Veiszadeh warned that “Fuel excise revenue is in terminal decline. Without reform, we risk a future where our roads are underfunded, unsafe, and unable to support the demands of a growing population.” He characterised a national RUC not only as a funding tool but as a productivity reform intended to preserve road quality and economic performance.
New Zealand’s change and broader industry support
New Zealand has already taken the step Australia is being urged to consider. Minister of Transport Chris Bishop announced the abolition of petrol tax and the move to a system where all vehicles pay based on distance and weight. In Parliament the Minister said, “The abolition of petrol tax, and the move towards all vehicles (whether they be petrol, diesel, electric or hybrid) paying for roads based on distance and weight, is the biggest change to how we fund our road network in 50 years.”
