Senior ministers have warned that NSW should not follow other states in imposing a tax on electric cars, arguing it would discourage people from buying them just when the government needed to provide incentives to get more low-emissions vehicles on the road.
It is understood one option would invest the money generated from the new tax into infrastructure to encourage the technology, including charging stations. Mr Constance pointed to last summer's bushfires as a major reason why Australian politicians needed to focus on lowering carbon emissions before looking for new revenue streams to replace dwindling fuel excise.
NSW Environment Minister Matt Kean said Victoria's move to tax electric vehicles handed NSW a competitive advantage. That report recommended that NSW phase in a fair and nationally compatible road user charge, which could use electric vehicles as a potential pilot.