Australia: Net-Zero Cost Debate and EV Road-User Tax — Policy Crossroads Ahead of Election
In 2025, Australia is grappling with two key national issues. First, the country’s commitment to achieving net-zero emissions by 2050 has sparked intense debate. Critics warn of side effects such as an estimated A$9 trillion economic burden, rising electricity prices, and weakening of the manufacturing sector. Second, in response to the growing adoption of electric vehicles (EVs) and the decline in fuel excise revenue, the federal government is planning to introduce a distance-based Road User Charge (RUC) starting in 2027. While New South Wales (NSW) and Western Australia (WA) are preparing for implementation, Victoria and South Australia have rejected similar policies due to constitutional and regulatory concerns. These two issues reflect deeper policy tensions in the lead-up to the 2025 federal election, particularly around green growth, fiscal sustainability, and social equity.
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