ZLEV Road-user charge

Learn more about the road-user charge for Victorian registered zero and low emission vehicles (ZLEVs) coming 1 July 2021.

About the road-user charge

It’s proposed that from 1 July 2021, a new distance-based road-user charge will be introduced for Victorian registered zero and low emission vehicles (ZLEVs). These charges will apply to light vehicles not predominantly powered by a fuel source subject to Commonwealth Government fuel excise, such as petrol, diesel or LPG.

What is the new charge and how much will I need to pay?

The new charge, will depend on your vehicle type and how far you drive. See more in the table below.

Vehicle type Proposed charge Registration concession available?
Electric, other zero emission vehicles and hydrogen vehicles 2.5 cent/km 

Yes

Plug-in hybrid electrical 2.0 cent/km  Yes 
Conventional hybrid  N/A No             

The average distanced travelled for light passenger vehicles in Victoria is approximately 13 100 km a year so, on average, electric vehicle owners could  expect to pay an additional $330 a year and plug-in hybrid-electric vehicles owners could incur an additional $260 a year.

Because ZLEVs have environmental and health benefits, owners of these vehicles will continue to pay less than other vehicles – about 2 cents/km less than an average driver pays in fuel excise.

What does the charge go towards?

Australian drivers pay fuel excise when they fill up their vehicle with petrol, diesel or LPG. ZLEV owners currently pay little or no fuel excise but still use our roads. These proposed changes  will mean that ZLEV owners make a fair contribution to funding Victorian roads.

The Government will use the revenue raised from the first few years of this charge to invest in accelerating the adoption of zero and low emission vehicles. This will include new electric vehicle charging infrastructure and reforms to enable electric vehicle ready new buildings.

Can I still get the hybrid or electric vehicle registration discount? 

ZLEV owners who are subject to distance-based charges will continue to receive a $100 registration discount on their annual Victorian registration.

Conventional hybrid vehicles, predominantly powered by a petrol or diesel internal combustion engine, will no longer be eligible for a $100 registration discount on their annual Victorian vehicle registration.

Learn more about the registration discount.

How would I pay the charge? 

For us to work out the ZLEV charge against the distance you’ve travelled, you’ll need to provide us with odometer readings.

When you pay your vehicle registration online via your myVicRoads account, a bill will be automatically generated based on your odometer reports.

You can pay the ZLEV charge quarterly, semi-annually or annually. 

We will be contacting vehicle owners with more information on how to report odometer readings as well as the billing and payment process.

Are there any changes to motor vehicle stamp duty for low emission vehicles?

No, there will be no changes to the motor vehicle stamp duty concession for all low emission passenger vehicles which produce 120 grams or less of carbon dioxide emissions per kilometre travelled.

How much you’ll need to pay depends on how far you drive. 

The average distanced travelled for light passenger vehicles is approximately 13 100 km a year so, on average, electric vehicle owners will pay an additional $330 a year and plug-in hybrid-electric vehicles owners will pay an additional $260 a year. 

Read the below examples to learn more.

Example 1: I drive a Tesla Model S that I use to commute to work

Patrick usually uses his Tesla Model S to commute to work and to get around on the weekends. He typically drives 10 000 km a year. 

Patrick will need to pay 2.5 cents/km – $250 a year in total – in distance-based charges. 

Example 2: I drive a Mitsubishi Outlander PHEV that I use a lot

Natasha owns a Mitsubishi Outlander PHEV. She drives about 20 000km per year. 

Natasha will need to pay 2.0 cents/km, or $400 per year, in distance-based charges.

Natasha usually remembers to charge her car at home each night but sometimes she forgets. On those days, she fills her car with regular unleaded petrol and pays the associated fuel excise. She still needs to pay the ZLEV road-user charge, even when using petrol. That is why PHEVs are charged a lower per kilometre rate than electric and other zero-emission vehicles.

Example 3: I have a Toyota Camry Hybrid that I use as a ride-share operator

Abdi owns a Toyota Camry Hybrid he uses for part-time ridesharing and drives about 40 000 km in a typical year.

Conventional hybrid vehicles, like the Toyota Camry Hybrid, are not subject to distance-based charges. 

Abdi has previously received a $100 concession on vehicle registration; however, the Toyota Camry Hybrid will no longer be eligible for this concession from 1 July 2021.

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