Australia’s car industries wants several licence and government fees given the flick to simplify taxation on drivers.

Federal Chamber of Automotive Industries chief executive Tony Weber wants the Federal Government to overhaul “outdated practices” by removing licence fees, registration fees, stamp duty and the fuel excise.

Mr Weber said drivers should be taxed on how much they use the road.

“It’s an opportunity we have now to re-design our tax system around motoring to make it more simplistic and more efficient for users,” Mr Weber told 9News.

Federal Chamber of Automotive Industries chief executive Tony Weber.
Federal Chamber of Automotive Industries chief executive Tony Weber. (Nine)
A Tesla electric charging station
A Tesla electric charging station (Nine)

Older Australians who use their car less often would benefit most from the move.

Mr Weber also wants owners of electric cars to be rewarded as more get on the roads.

Other states have already implemented plans to tax low emission and hybrid vehicles almost three cents per kilometre to make for the loss in excise.

“Excise on fuel is about 12 billion dollars a year net; well put it another way, for every litre of petrol you buy, you’re paying 43 cents in excise that is going to evaporate over time,” Mr Weber said.

Queensland Transport Minister Mark Bailey.
Queensland Transport Minister Mark Bailey. (Nine)

The Queensland Government is yet to decide on how it will tax electric vehicles.

Transport Minister Mark Bailey told 9News he wants to see the results from other states before making any decisions.

“Queensland is certainly not looking at such a move at this year’s budget; we see these moves as very much premature,” Mr Bailey said.

Queensland currently has the third-highest number of electric vehicles on the road, and the Minister said the Federal Government needs to do more to keep the numbers rising.



This content first appear on 9news

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