Victoria's road user charge to increase from July 1

The Victorian Government's controversial road user charge has been increased for the 2022-2023 financial year, with zero and low emission vehicle owners now having to pay an extra 0.1 cents per kilometre travelled.

Coming into effect on July 1, the increased road user charge will result in electric vehicle (EV) and hydrogen fuel-cell vehicle (FCEV) owners now paying 2.6 cents per kilometre – up from the 2.5c/km charge which was introduced last year.

Owners of plug-in hybrid vehicles (PHEVs) will be slugged with the additional charge too, jumping up from 2.0c/km to 2.1c/km, while also having to pay the fuel excise – which is set to return to 44.2 cents per litre in September.

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In the lead-up to the road user charge being implemented last year, a number of groups in the Australian automotive industry criticised it as a regressive tax on low emissions vehicles, with an open letter to the Victorian Parliament calling it the world's worst EV policy.

"Going it alone will mean Victoria has the worst electric vehicle policy in the world," the letter read.

"No other jurisdiction has introduced such a targeted levy on the cleanest vehicles on the road without significant incentives to balance it out.

"This new tax means the world’s manufacturers are far less likely to send Victorians their best, most affordable, zero emissions vehicles. That makes things much harder for Victorian families who want to buy and drive electric."

New South Wales, South Australia and Western Australia will all introduce road user charges which mirror Victoria's original tax, however all three states won't be doing so until July 1, 2027.

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Victoria's transport department VicRoads requires owners to upload images of their odometers annually to determine how many kilometres the vehicles have travelled, threatening to cancel the registration of anyone who doesn't submit a reading and imposing fines of nearly $10,000 if it is falsified.

VicRoads has confirmed its $100 annual registration discount will remain for EV, FCEV and PHEV owners, essentially offsetting the first 3846km of travel for EV/FCEV drivers and the first 4762km covered by those in PHEVs.