Association backs charges reform

The Motor Industry Association (MIA) has welcomed government plans to extend the payment of road user charges (RUC) to all vehicle classes to help pay for the roading network. 

It says the move, announced on August 6, will place all vehicles on the same footing and make the system fairer and more efficient. 

Aimee Wiley, chief executive, adds she particularly supports the new system being digitally-enabled, making for efficient administration and compliance. 

“Converting the whole fleet to road user charges will be a major undertaking, and we will gain nothing if we do not make use of the latest technology to manage the system digitally and in real time,” she explains. 

“It’ll make compliance much easier and administration less expensive.” 

The MIA notes petrol-powered vehicles, which make up the vast majority of the country’s fleet, currently pay an excise duty of 77 cents on every litre of petrol they use.

However, diesel and battery electric vehicles are subject to road user charges per kilometre travelled, which vary depending on the weight and type of vehicle. 

Wiley says the government is taking the correct approach by determining the technology platform for the new RUC system before deciding the approach and timeframe for the transition.

At present, consumers who pay RUC buy a paper licence electronically or over the counter at outlets such as PostShop or the AA.

The MIA says digital systems will automate purchasing, renewals, payments and monitoring distance travelled, while reducing manual effort and associated costs.