Rising fuel prices are accelerating the shift to electric vehicles, which bypasses the fuel excise and leaves a growing deficit in the budget.

Click PLAY to hear about the proposed tax.

Alison Reeve, Energy and Climate Change Program Director at Grattan Institute, explained to 6PR Drive host Jamie Burnett that the government will need to reassess the current vehicle taxation system to include a road user charge for EV drivers.

“Technology has changed the effectiveness of that tax and so we need to think about what the impacts are,” she said.

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