Your Questions Answered: Are PHEV drivers about to pay more?

We are wondering what is happening with the road tax for PHEVs. We recently purchased a GWM H6 PHEV. We are retired, own our home and have spent a significant sum installing solar panels and a 30kW battery. Both of the above expenses were intended to hopefully insulate us from energy price fluctuations and do “our bit” for the environment (and our grandchildren).

We realise roads need maintaining and PHEVs have significant weight that can damage roads. We also have reservations around the security and availability of remote charging facilities for EVs, hence the decision to buy a PHEV.

Our particular purchase differentiates kilometres driven in EV mode from petrol, so we hope we aren’t double-slugged with an overall distance-based tax – particularly after spending a lot of money on solar and paying the surcharge for a PHEV. – Carol and Paul

Answer: Hi Carol and Paul, yes, a road user charge (RUC) for both EVs and PHEVs is being proposed at state level and is also being studied at federal level. It’s not a clear-cut, done deal, though. Victoria tried and failed to do this already.

The Victorian Government’s Zero and Low Emission Vehicle Distance-based Charge Act was determined to be invalid in the decision handed down by the High Court in Vanderstock v The State of Victoria (2023). The High Court deemed the legislation invalid as the tax was considered an excise, which only the Federal Government has the constitutional power to levy.

The problem is that roads cost money to maintain and, given the state of our roads, you can tell that governments in some areas are struggling to keep up with such maintenance. As a society, we all benefit from roads. General revenue is used, in part, to pay for roads. Fuel excise, an indirect road tax, is declining. Somehow, governments at some point need to fairly tax both EVs and PHEVs for their road use.

One example of a proposed state RUC is in NSW, where the government says an RUC will apply to eligible EVs from July 1, 2027, or when EVs make up 30 per cent of all new-vehicle sales, whichever comes first. Plug-in hybrid EVs will be charged a fixed 80 per cent proportion of the full road user charge. The road user charge rate NSW proposes for the 2026-27 financial year is 3.095 cents per kilometre for a battery EV or hydrogen fuel-cell EV and 2.476 cents per kilometre for a plug-in hybrid EV. WA also intends to roll out a road user charge in 2027.

So you can see in the NSW proposal that PHEVs would be charged a lower RUC.

However, at this point, the implication is that, given the High Court determination in Victoria’s case, the NSW and WA state-based EV and PHEV road user charges will likely be challenged, possibly successfully.

Meanwhile, the Federal Government is looking at a 2028 timeline for an EV and PHEV RUC. This is still in the study stage. If you look at where the wind is blowing, it suggests the Feds, and only the Feds, will likely tax your PHEV via some kind of RUC, but not for a few years. You can see why this is a political hot potato in 2026. The transition to a majority EV and PHEV car parc is a long way off. Somehow, we need to pay for our roads, which cost more to fix with inflation and need fixing more often due to increasingly frequent weather events.

We want to buy a new-ish SUV with a $25,000 maximum budget. It needs to be big enough for my Great Dane to be comfortable in the back, but not too big because we live in the inner city and rely on street parking. A bigger SUV is harder to park and, while we don’t drive much, we don’t want to drive something thirsty either. No EVs – we can’t plug in at home. What do you suggest? – Susanne

Answer: Hi Susanne, allowing a large dog like a Great Dane to stretch out comfortably in the back of a small or even medium SUV might be difficult. It will be a compromise regardless, and it depends on how happy your dog is to curl up in the back and how far you drive, meaning you would have to factor in more regular stops for your dog to get out for a stretch on a long trip. I would actually suggest a passenger wagon rather than an SUV because SUVs are higher, and it’s harder on your dog’s hips and other joints to leap into or out of the back, especially as your dog gets older. So, something like a Skoda Octavia, which gives you a compromise of cargo floor space and headroom, a shorter overall length for parking and a low floor height. Another option is a passenger van, which will offer ideal headroom and, with the rear (third-row) seats folded, enough floor space and a low floor height. The trouble is, there are no popular, newer small or medium passenger vans on the market, except for the Volkswagen Caddy Maxi, of which relatively few were sold. The quirky alternative that would tick all the boxes – large dog-friendly rear space, small parking footprint and economical running – is a used, Japanese-market kei van such as a Suzuki Every passenger van. You would have to fold down the back seats for your dog to stretch out, though, and highway trips wouldn’t be much fun.

Whichever of these options you choose, you would probably end up folding the rear seat so your hound has enough floor space. You would still need to think about a cargo or pet barrier, or another safe way of restraining your dog, as, if they are anything like our Lab, they will be very keen to jump up front while you’re driving!

How do I get my money back on a faulty new car?

I bought a brand-new small SUV in May that has spent the last six months at a dealer workshop trying to sort out an infotainment glitch and a transmission fault. I have been given the demo car to use. I am sick of waiting and recently asked for a refund. I am getting nowhere with the dealer or manufacturer. I have been offered the demo car in exchange, but I have to pay the transfer tax to get it in my name. What can I do to resolve this? – Jean 

Answer: Hey Jean, it is frustrating to buy a new car, have it not function as intended and then not get the recourse you might expect from the dealer. Australian Consumer Law provides protections for this, stating that “new cars come with automatic consumer guarantees that they must be of acceptable quality, safe, and fit for purpose. If your car has suffered a major failure (such as being unsafe, undriveable, or unable to be fixed within a reasonable time, or after multiple failed repair attempts), you have the legal right to reject the vehicle and choose a refund or a replacement.” 

I would suggest having a look at the ACCC website and also your state consumer affairs body, such as NSW Fair Trading or Consumer Affairs Victoria. We can’t give you specific legal advice here, but suggest more generally that you make the effort to document absolutely everything as carefully as you can, take notes and keep all correspondence. If the dealer is not giving you a fair response, then it is up to you to decide whether you will take it further. That, unfortunately, can take considerable time and effort.

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au