Tax reform is needed by governments to implement an electric vehicle road user charge and reduce the tax burden from payroll tax and heavy vehicle stamp duty.

In its submission to the NSW review of Federal Financial Relations, the ATA has backed review recommendations for governments to design a nationally compatible and fair road user charging scheme for electric vehicles.

The ATA submission calls on Governments to also reduce the complexity of payroll tax and continue to lower the payroll tax burden on business.

With the impact of COVID-19 on the wider economy through the loss of jobs, loss of income and resulting weak demand, any reform to payroll tax must reduce the burden

The submission also recommends Governments reform and remove motor vehicle stamp duties, commencing with heavy vehicles.

Stamp duty discourages the upgrading of vehicles, and as it stands, Australia’s vehicle fleet is older than international comparisons. Newer vehicles have the latest safety technologies, meet newer emissions standards and are quieter.