With the release of the Federal budget next week there’s been much talk about the recent cost-of-living increases and the possibility the Government will cut fuel excise to ease pressure at the petrol pump. The fact is the current system of taxing motorists via a fuel excise is long overdue for reform.

With the expected increase in electric cars the Governments take from fuel excise is going to reduce so now is the ideal time to look at the merits of a road user charge. I agree with the Federal Chamber of Automotive Industries that it’s an ideal time to scrap the antiquated fuel excise charge and transition to a road user charge for all motorists including owners of electric cars.

As they pointed out this week a road user charge is not an extra charge but one that can replace a myriad of charges such as registration, fuel excise, luxury car tax and sales tax.

I’m David Berthon.

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