Electric Vehicles (Revenue Arrangements) Act 2021

The Act operates through a set of defined terms that are critical to understanding its scope and application. The Dictionary in Schedule 1, read with section 4, supplies the core definitions.

Zero or low emissions vehicle is the umbrella term, meaning a battery electric vehicle, a hydrogen fuel cell electric vehicle, or a plug‑in hybrid electric vehicle (Schedule 1). Each subtype is separately defined:

• Battery electric vehicle means a motor vehicle that uses only an electric motor for propulsion and is not fitted with a fuel cell or an internal combustion engine.
• Hydrogen fuel cell electric vehicle means a motor vehicle that uses an electric motor for propulsion, is equipped with a fuel cell for converting hydrogen to electricity, and is not fitted with an internal combustion engine.
• Plug‑in hybrid electric vehicle means a motor vehicle that uses an electric motor for propulsion, takes and stores energy from an external source of electricity, and is fitted with an internal combustion engine either for generating electrical energy or for propelling the vehicle.

Motor vehicle itself is defined by reference to the Road Transport Act 2013 but expressly excludes an excluded motor vehicle. Section 8 lists three categories of excluded motor vehicles: a vehicle not required to be registered in New South Wales; a heavy vehicle (as defined in the Road Transport Act 2013); and a vehicle of a type or used for a purpose prescribed by the regulations. Heavy vehicle is defined in the Dictionary by reference to the Road Transport Act 2013.

Relevant zero or low emissions vehicle is a subset of zero or low emissions vehicles that are actually subject to the charge. Section 9(1) defines them as:

• (a) a zero or low emissions vehicle that is registered for the first time on or after the relevant date, or that after the relevant date is registered in the name of a person different from the previous registered operator; and
• (b) a zero or low emissions vehicle that was first registered before 1 January 2024 and in relation to which duty was not paid under Chapter 9 of the Duties Act 1997 because of the operation of repealed section 270D of that Act.

The relevant date is defined in Schedule 1 as the earlier of 1 July 2027 or a date prescribed by the regulations when the Minister is reasonably satisfied that battery electric vehicle sales will be thirty per cent of new vehicle sales in New South Wales. This means the charge does not necessarily commence on a fixed date for all vehicles; for many, it begins once the relevant date arrives or once registration events occur after that date.

Registered operator is defined as the registered operator of the vehicle under the Road Transport Act 2013 or another person prescribed by the regulations. This ties liability to the person who holds the vehicle’s registration in NSW.

Public place is defined in section 11(5) broadly to include a road or road related area under the Road Transport Act 2013, and any other place that the public is entitled to use, is open to the public, or is used by the public (whether or not on payment of money), or a place the occupier allows the public to enter.

Odometer is defined in Schedule 1 to include a system of vehicle telemetrics installed by the vehicle manufacturer, or another device or system approved by Transport for NSW under section 23. This allows alternative distance‑measuring technologies.

Indexed amount is the base per‑kilometre figure used to calculate the charge. For 2021-22 it is 2.500 cents per kilometre. For later financial years it is adjusted by CPI using the formula in section 12(2). The rate for plug‑in hybrids is eighty per cent of the indexed amount (section 13(1)(b)).

Pre‑paid option and post‑paid option are defined in section 16 as the two methods of payment. The pre‑paid option involves paying before travel; the post‑paid option involves paying after travel, but only if the regulations allow it and the operator has elected to use it.

Financial year means the period starting on 1 July in a year and ending on 30 June in the following year (Schedule 1). The charge rate is published for each financial year.

Transitional provisions in Schedule 2 address vehicles that already fall within section 9(b): their registered operator is not required to give an odometer reading until the date of first registration renewal after the relevant date (Schedule 2, clause 1). Clause 2 confirms that no road user charge is payable for kilometres travelled before the relevant registration date for that vehicle, where the relevant registration date is the first registration event after the relevant date.

These concepts together define the scope of the charging regime, the types of vehicles caught, the timing of liability, and the mechanism for calculating and paying the charge.

The primary persons affected by the Act are the registered operators of relevant zero or low emissions vehicles. Under section 10, the registered operator for such a vehicle is liable for the road user charge. The registered operator is, under the Dictionary, the person who is the registered operator under the Road Transport Act 2013 or another person prescribed by the regulations. Therefore, the charge falls on the individual or entity that holds the NSW registration for the vehicle, not necessarily the driver or owner in a beneficial sense.

The category of vehicles that trigger liability is narrower than all electric or low emission vehicles. Section 9 identifies two groups of vehicles as relevant zero or low emissions vehicles. The first group (section 9(1)(a)) comprises vehicles that are first registered on or after the relevant date (the earlier of 1 July 2027 or a prescribed date when thirty per cent of new vehicle sales are battery electric), or vehicles that are transferred to a new registered operator after the relevant date. The second group (section 9(1)(b)) comprises vehicles that were first registered before 1 January 2024 and that were not subject to duty under Chapter 9 of the Duties Act 1997 because of the operation of repealed section 270D of that Act. Those are vehicles that previously benefited from a stamp duty exemption for electric vehicles, which was repealed in 2023. The Act therefore captures both new EVs (and transfers) after the relevant date, and certain older EVs that previously had the duty exemption.

Excluded from the Act entirely are motor vehicles not required to be registered in NSW, heavy vehicles (as defined in the Road Transport Act 2013), and vehicles of a type or used for a purpose prescribed by the regulations (section 8). So heavy trucks, vehicles with interstate registration, and any prescribed types are not affected.

The Act also affects persons who sell or dispose of a relevant zero or low emissions vehicle. Section 19(b) requires the person selling or disposing of the vehicle to give Transport for NSW an odometer reading within the period prescribed by the regulations. Section 20 then allows Transport for NSW to issue an assessment of charges due from that person or a notice of refund for overpaid charges. So sellers have a compliance obligation regardless of whether they are the registered operator at the time of sale.

Persons who are not registered operators but who provide information or documents may be affected by information‑sharing arrangements. Section 26 allows Transport for NSW to enter into arrangements with other government sector agencies or agencies of other States or Territories to share relevant information about road user charges. Section 27 permits the Minister to enter into arrangements with other jurisdictions for the collection of road user charges payable under the law of that jurisdiction for vehicles registered in NSW that travel in that other State or Territory. This means that registered operators may face obligations enforced through interstate cooperation.

The Act also contemplates that the regulations may provide exemptions and concessions for classes of vehicles or registered operators (section 30(2)(a)). So certain groups, such as low‑income operators or particular vehicle uses, may be expressly exempted or given concessions by regulation.

Transport for NSW itself is the key administrative body. It must calculate and publish the road user charge rate each year (section 13(4)), approve devices or systems for measuring kilometres (section 23), and may require information and documents from persons for the purpose of calculating liability (section 24). It also has the power to issue penalty notices through authorised officers, who include police officers and persons declared by the regulations (section 29). The Local Court hears proceedings for offences (section 28).

Finally, the Act affects the Parliament and the Minister. Section 22 requires the Legislative Council to designate a committee to review the operation of the Act two years after commencement. Section 31 (which is to be repealed on 1 July 2027 or an earlier prescribed date) requires the Minister to provide annual updates to each house of Parliament on the percentage of new vehicle registrations that are battery electric vehicles and the date by which the Minister expects that percentage to reach thirty per cent.

The Act imposes a number of specific duties on registered operators of relevant zero or low emissions vehicles, balanced by rights to deductions, refunds, and alternative compliance pathways.

Duty to pay road user charges. The central obligation is in sections 9 and 10: a road user charge is payable for each kilometre travelled on a public place, and the registered operator is liable. The charge is calculated by multiplying the applicable road user charge rate (which depends on vehicle type) by the number of kilometres travelled in the period, after deducting kilometres travelled on private land and any other kilometres prescribed by the regulations (section 14). The operator must pay either via the pre‑paid option or, if allowed by regulation and elected by the operator, the post‑paid option (section 16).

Duty to provide odometer readings. Under the pre‑paid option, before paying for a block of kilometres, the operator must give Transport for NSW a current odometer reading for the vehicle (section 17(4)). This reading must be given in a way approved by Transport for NSW, and at least one approved way must enable the operator to provide the reading without automatic transmission of data without operator intervention (section 17(5)-(6)). Under the post‑paid option, the operator must give odometer readings at intervals prescribed by the regulations (section 18(3)). Failure to do so is an offence punishable by up to 20 penalty units for an individual or 100 for a body corporate.

Additionally, odometer readings must be given at the time of vehicle registration or renewal of registration by the person applying for registration (section 19(a)), and upon sale or disposal by the seller within the period prescribed by the regulations (section 19(b)). Non‑compliance with these reporting obligations also attracts the same maximum penalty.

Duty not to exceed prepaid kilometres. Under the pre‑paid option, the registered operator must ensure the vehicle does not travel more kilometres than have been paid for, unless the operator has a reasonable excuse (section 17(7)). A reasonable excuse includes but is not limited to an excuse prescribed by the regulations, which may include financial hardship (section 17(10)-(11)). However, section 17(9) provides a safe harbour: the operator does not commit an offence if they travel no more than 500 kilometres beyond the paid amount and pay the additional charges within 21 days after receiving written notice from Transport for NSW.

Duty to comply with information requests. Under section 24, Transport for NSW may by written notice require a person to provide information or documents relevant to calculating liability for road user charges. The person must comply within a period of at least 21 days unless they have a reasonable excuse. Non‑compliance is an offence punishable by up to 20 penalty units for an individual or 100 for a body corporate.

Duty of confidentiality. Section 25 prohibits disclosure of information obtained in connection with the administration or execution of the Act, unless the disclosure is with the consent of the person from whom the information was obtained, is made in connection with the administration or execution of the Act, is made under an information‑sharing arrangement under section 26, or is otherwise authorised or required by law. The maximum penalty mirrors other offences.

Rights of the registered operator. Several rights are provided. First, the operator may claim a deduction from the total kilometres travelled for travel on private land, but only to the extent that Transport for NSW is satisfied the kilometres were travelled on private land (section 14(2)(b)(i)). The regulations may also prescribe other kilometres to be deducted. Second, the operator may choose between the two payment options, subject to the post‑paid option only being available if regulations allow it and the operator elects before travelling (section 18(2)). If the post‑paid option is not available by regulation, the operator must use the pre‑paid option.

Third, if an odometer reading cannot be provided, the operator may provide an estimate of kilometres travelled, calculated in a way Transport for NSW considers reasonable (section 15). Fourth, upon sale or disposal of a vehicle, if the operator has overpaid road user charges, Transport for NSW must issue a notice specifying a refund and how it will be paid (section 20(2)(b)). Fifth, if a vehicle is stolen, written off, or otherwise damaged, Transport for NSW must consider whether it would be unreasonable to require an odometer reading or a timely reading. In such cases, Transport for NSW may either assess the charge based on a reasonable estimate or extend the time to provide the reading (section 21). Sixth, the operator has a right to object to an assessment or to seek a reassessment if the regulations provide for such procedures (section 30(2)(e)). The regulations may also provide for refunds, discounts, and waivers (section 30(2)(b)).

Finally, the operator has a right to be informed: Transport for NSW must publish the road user charge rate for each financial year on a government website before the start of the year (section 13(4)), though failure to publish does not invalidate the charge (section 13(5)).

The Act establishes a tiered enforcement framework with offences, penalty notices, and regulatory powers to impose additional sanctions.

Offence provisions. Several provisions create direct criminal offences, each carrying a maximum penalty of 20 penalty units for an individual and 100 penalty units for a body corporate (except where noted otherwise). The offences are:

• Failure by a registered operator using the post‑paid option to give an odometer reading at the prescribed intervals (section 18(3)). This is a strict liability‑style offence with no reference to reasonable excuse.
• Failure to give an odometer reading at the time of registration or renewal, or upon sale or disposal (section 19). Again, no explicit reasonable excuse defence in the section, though general criminal defences may apply.
• Failure to comply with a written notice from Transport for NSW requiring information or documents, unless the person has a reasonable excuse (section 24(3)).
• Unauthorised disclosure of information obtained in connection with the administration of the Act (section 25).

The pre‑paid option contains a specific provision regarding exceeding paid kilometres. Section 17(7) states that the operator must ensure the vehicle does not travel more kilometres than paid for, unless the operator has a reasonable excuse. Section 17(8) allows the regulations to create an offence for contravening subsection (7), with a maximum penalty of 20 penalty units for an individual and 100 for a body corporate. However, section 17(9) provides a safe harbour: no offence is committed if the operator travels no more than 500 excess kilometres and pays the additional charges within 21 days of receiving written notice from Transport for NSW.

Penalty notices. Section 29 authorises an authorised officer to issue a penalty notice to a person if it appears that the person has committed a penalty notice offence. A penalty notice offence is any offence against the Act or regulations that is prescribed by the regulations as a penalty notice offence. The amount payable under the penalty notice is the amount prescribed by the regulations, up to the maximum penalty that a court could impose for the offence. The Fines Act 1996 applies to these penalty notices, meaning that payment of the penalty notice amount discharges liability for the offence. Authorised officers include members of the NSW Police Force and persons declared by the regulations (section 29(7)).

Proceedings. Section 28 provides that proceedings for an offence under the Act or regulations may be dealt with summarily before the Local Court. This indicates that offences are summary offences, not indictable.

Regulatory enforcement powers. Section 30(2) gives the regulation‑making power broad scope. The regulations may provide for:

• The payment of interest and penalties in relation to failures to pay road user charges or late payment (section 30(2)(f)).
• The recovery of unpaid road user charges (section 30(2)(g)).
• Matters relating to enforcement, including the inspection of vehicles, ways to verify odometer readings, and the power to cancel or suspend the registration of zero or low emissions vehicles for failure to pay road user charges or otherwise comply with the Act (section 30(2)(h)).
• The issue of invoices for charges, objections, appeals, and reassessment (section 30(2)(e)).
• Offences created by the regulations themselves, punishable by a maximum penalty of 20 penalty units for an individual and 100 for a body corporate (section 30(3)).

This grant of power is significant: it allows the regulations to create a standalone enforcement regime for unpaid charges, including registration suspension, without requiring a court proceeding for each infraction. However, section 30(4) imposes limits: the regulations may not provide for the payment of fees under the Act, and any administrative costs included in notices or statements must not exceed the costs reasonably incurred in producing those documents.

General enforcement context. The Act does not provide for imprisonment as a penalty; all penalties are expressed in penalty units. One penalty unit under NSW law is currently $110 (or may be adjusted). Therefore, the maximum fine for an individual is $2,200 per offence (20 units) and for a body corporate $11,000 (100 units), unless the regulations set a different amount for penalty notice offences up to those maxima.

The combination of court proceedings, penalty notices, and regulatory sanctions such as registration suspension gives Transport for NSW a flexible enforcement toolkit. The extraterritorial application (section 6) also means that enforcement may need to rely on interstate cooperation through arrangements under section 27 for collection of charges.

The Electric Vehicles (Revenue Arrangements) Act 2021 does not operate in isolation. It interacts with several other NSW statutes and potentially with interstate laws.

Road Transport Act 2013. The Act repeatedly borrows definitions from the Road Transport Act 2013. The definition of motor vehicle in the Dictionary is the same as under the Road Transport Act, but excludes excluded motor vehicles. Heavy vehicle is defined by reference to the Road Transport Act. Public place in section 11(5) includes a road or road related area within the meaning of the Road Transport Act. Registered operator is defined as the registered operator under the Road Transport Act (unless the regulations prescribe otherwise). Written‑off light vehicle in section 21(3) has the same meaning as under section 83 of the Road Transport Act. The Act ties its own registration‑related obligations (odometer readings at registration renewal, transfer) to the existing vehicle registration system under the Road Transport Act. This ensures that operators do not have a separate registration system; the road user charge is integrated with existing vehicle administration.

Duties Act 1997. Section 9(2) references repealed section 270D of the Duties Act 1997. That section formerly provided a stamp duty exemption for certain zero or low emissions vehicles. The Act uses the existence of that exemption as a criterion for bringing certain pre‑2024 vehicles into the road user charge regime. Vehicles first registered before 1 January 2024 that were not subject to duty because of that exemption become relevant zero or low emissions vehicles. The amendment history (2023 No 26) inserted this provision to capture vehicles that had previously enjoyed a tax concession.

Fines Act 1996. Section 29(3) of the Act provides that the Fines Act 1996 applies to penalty notices issued under this Act. That Act governs the administration of penalty notices, enforcement of unpaid fines, and mechanisms such as driver licence suspension for unpaid fines. This means that an unpaid penalty notice under this Act could ultimately result in enforcement action under the Fines Act.

Government Sector Employment Act 2013. Section 26(2) defines government sector agency and head of a government sector agency by reference to that Act. This enables Transport for NSW to enter into information‑sharing arrangements with other NSW government agencies using the standard definitions of the public sector.

Interpretation Act 1987. Section 4 notes that the Interpretation Act 1987 contains definitions and provisions that affect interpretation. Section 30C of that Act was used to repeal Schedule 3 (as indicated in the text). General interpretation principles from the Interpretation Act apply, such as how expressions relating to time or gender are to be read.

Other States and Territories. Sections 6, 26, and 27 establish the extraterritorial reach and cooperation mechanisms. Section 6 declares the Act is intended to have extraterritorial application to vehicles registered in NSW that travel on roads in other States or Territories. Then section 26 permits Transport for NSW to enter into arrangements with agencies of other States or Territories about the sharing of information relevant to road user charges under this Act or equivalent charges under the law of the other jurisdiction. Section 27 allows the Minister to enter into arrangements with other States or Territories about the collection of payments for road user charges under the law of that jurisdiction for vehicles registered in NSW that travel there. This indicates that the Act contemplates a reciprocal arrangement system, similar to schemes for interstate truck charges. However, the Act itself imposes the charge for out‑of‑state travel; an arrangement is not required for liability, only for collection efficiency.

Consolidated Fund. Section 7 states that Parliament intends all revenue collected under the Act to be paid into the Consolidated Fund. This is a statement of fiscal policy rather than a legal interaction with another Act, but it connects to the Public Finance and Audit Act or similar financial management legislation governing the receipt of money by the State.

Other revenue laws. The Act does not explicitly state that the road user charge replaces or offsets fuel excise, vehicle registration fees, or any other tax. However, the object (section 3) refers to a system of distance‑related road user charges for certain zero and low emissions vehicles. In practice, electric vehicles are not subject to fuel excise at the Commonwealth level, and this Act may be seen as a State‑level measure to recoup revenue for road use. The Act does not create a credit or deduction against any other NSW tax; it is a standalone charge.

The Act received assent and commenced on its date of assent in 2021 (section 2). It has been amended twice as reflected in the source text.

Amendment by Act No 59 of 2022 (Schedule 2.16). The Dictionary in Schedule 1 was amended by an Act of 2022. The specific changes are not detailed in the source, but the note at the end of Schedule 1 states: “sch 1: Am 2022 No 59, Sch 2.16[1][2].” As the Act is a relatively recent one, this may have been a minor amendment, possibly to adjust the definition of relevant date or to add a reference to an approved device. The current text of the Dictionary does not show any visible change, so the amendment was likely technical or clarifying.

Amendment by Act No 26 of 2023 (Treasury and Revenue Legislation Amendment Act 2023). This amendment significantly altered the scope of the Act. The original section 9 presumably only captured vehicles registered for the first time on or after the relevant date, or transferred after that date. The 2023 amendment inserted a new paragraph (b) into section 9(1) to capture a second class of relevant zero or low emissions vehicles: those first registered before 1 January 2024 and for which duty was not paid under Chapter 9 of the Duties Act 1997 because of the operation of repealed section 270D. This brought into the charging regime vehicles that had previously received a stamp duty exemption under a now‑repealed provision. The note at the end of section 9 reads: “s 9: Am 2023 No 26, Sch 2.” The full title of that amending Act is the Treasury and Revenue Legislation Amendment Act 2023, and it is available as a PDF as noted in the source.

Repeal of Schedule 3. The source text indicates that Schedule 3 was repealed by the Interpretation Act 1987, section 30C. The content of Schedule 3 is not provided, but it was presumably an earlier transitional or application provision that was spent. Its repeal cleans up the Act.

Section 31 , sunset and repeal. Section 31 requires the Minister to provide annual updates to Parliament about battery electric vehicle registration percentages and the expected date for reaching thirty per cent. That section is itself repealed on the earlier of 1 July 2027 or the prescribed date under the definition of relevant date (section 31(2)). This is a self‑operating repeal; no further amending Act is needed.

No other amendments appear in the source text. The Act as shown is current as at the date of the source. It does not show any amendments in 2024 or later. The transitional provisions in Schedule 2 were part of the original Act and have not been amended (though clause 1 and 2 cross‑refer to section 9 as amended, they still appear to apply to the pre‑2024 vehicles added by the 2023 amendment).

The Act therefore has a limited amendment history, with the most significant change being the expansion of liability to older exempted EVs. This amendment was retrospective in the sense that it captured vehicles already on the road, but the transitional provisions protect operators of those vehicles from being liable for pre‑relevant date travel.

The source text of the Electric Vehicles (Revenue Arrangements) Act 2021 does not mention any cases, litigation, or court decisions interpreting or challenging the Act. The Act is still relatively new, having commenced in 2021, with the most significant amendment occurring in 2023. No case references appear in the provisions, notes, or schedules.

Because the Act has not yet been the subject of appellate litigation that is recorded in the text, there is no litigation history to report from the source. This does not mean that no cases exist; it simply means the text does not incorporate them. The Act may be subject to constitutional challenge in the future, given its extraterritorial application (section 6) and the potential overlap with Commonwealth fuel excise and interstate trade. However, no such challenge is documented in the source.

The Act does provide for a parliamentary review. Section 22 requires the Legislative Council to designate a committee to review the operation of the Act as soon as practicable after the day that is two years after commencement. That review may produce findings or recommendations, but it is not a judicial proceeding.

Additionally, the regulations may provide for objections to and appeals against the assessment of charges (section 30(2)(e)(ii)). Those appeals would be heard in the Local Court under section 28 or possibly under the administrative law jurisdiction of the Civil and Administrative Tribunal, but the Act does not specify. No such decisions are referenced in the source.

Practitioners should therefore be aware that as of the date of the source, there is no judicial interpretation of key terms such as “public place” or “reasonable excuse” under this Act. The Act’s extraterritorial application and the operation of the CPI‑indexed charge rate have not been tested in court. The safe harbour in section 17(9) has not been judicially considered. The meaning of “satisfied … have been travelled on private land” in section 14(2)(b)(i) has not been clarified by the courts. This lack of litigation history means that the Act’s provisions are to be read in their ordinary statutory meaning pending judicial guidance.

The Act’s interaction with other laws, particularly the Road Transport Act 2013, means that cases interpreting “public place” or “registered operator” under that Act may be relevant, but they would not be cases under this Act.

The Parliamentary Library or Transport for NSW may have background papers, but the source text does not include them.

The Act contains several provisions that may catch unwary operators or practitioners. The following points highlight potential traps.

1. Not all EVs are subject to the charge. The Act does not apply to zero or low emissions vehicles generally; it applies only to relevant zero or low emissions vehicles as defined in section 9. A battery electric vehicle first registered before the relevant date and that did not benefit from the repealed Duties Act exemption (section 9(1)(b)) is not a relevant vehicle. The Act is structured to phase in vehicles after the relevant date (1 July 2027 or an earlier prescribed date) and to catch older EVs that avoided duty. This means some EV owners may assume they are liable when they are not, or conversely may think they are exempt when they are not. It is crucial to check the vehicle’s registration history and whether the duty exemption was claimed.

2. The relevant date is uncertain. The relevant date is defined as the earlier of 1 July 2027 and the date prescribed by the regulations when the Minister is reasonably satisfied that battery electric vehicle sales will be thirty per cent of new vehicle sales in New South Wales. This means the charge may commence earlier than 2027 if the Minister makes a regulation. The Act gives no criteria for the Minister’s satisfaction, so the date could be triggered by a published determination. Operators need to monitor the Gazette and government websites for a notification that a date has been prescribed.

3. Pre‑paid option trap: exceeding paid kilometres. Under section 17(7), the operator must ensure the vehicle does not travel more kilometres than have been paid for, unless a reasonable excuse exists. The section allows the regulations to make it an offence. The safe harbour in section 17(9) only applies if the operator travels no more than 500 excess kilometres and pays within 21 days of receiving written notice from Transport for NSW. This is not automatic; it requires a formal notice from Transport for NSW. An operator who inadvertently exceeds the paid amount by a small margin but pays voluntarily before receiving a notice remains potentially liable for an offence, because the safe harbour is triggered only by receipt of a notice. The time for payment runs from the notice, not from the over‑travel. Operators should carefully manage their odometer tracking to avoid any over‑travel.

4. Post‑paid option requires prior election. Section 18(2) states that the operator may use the post‑paid option only if the operator has, before travelling the kilometres, notified Transport for NSW that the operator has elected to use the post‑paid option. An operator who travels first and then tries to switch to post‑paid is not entitled to do so. Additionally, the post‑paid option is only available if the regulations provide for it. As at the date of the source, the regulations are not provided, so it is not clear whether the post‑paid option is currently available. Practitioners should check the current regulations.

5. Odometer reading requirements: mandatory and unforgiving. Section 19 requires odometer readings at registration, renewal, and sale. Failure is an offence with a maximum 20 penalty units. There is no reasonable excuse defence in the section (contrast with s24(3) which includes a reasonable excuse defence). This means that even an operator who has a legitimate reason for not providing a reading at the exact time (e.g., the vehicle is in a remote area) may still be guilty of an offence. The only relief is for stolen, written‑off, or damaged vehicles under section 21, and that requires a specific application to Transport for NSW. Operators should set up systems to ensure odometer readings are captured at the required events.

6. Private land deduction: operator bears the burden of proof. Section 14(2)(b) allows a deduction for kilometres travelled on private land, but only to the extent that Transport for NSW is satisfied that those kilometres were indeed on private land. The Act does not specify the evidence required. The regulations may prescribe matters relating to the evidence (section 30(2)(d)), but until then, Transport for NSW has discretion. An operator who claims a large deduction without robust documentation may be at risk of a reassessment or penalty. The operator should maintain a logbook or GPS records to substantiate private travel.

7. Liability continues after sale. Section 19(b) requires the person selling or disposing of the vehicle to provide an odometer reading within the prescribed period. Section 20 then allows Transport for NSW to issue an assessment of charges due from that person. If the seller fails to give the reading, the charge may be assessed on a reasonable estimate. Moreover, the charge is based on the period up to the sale, but the seller remains liable for any unpaid charges even after the vehicle is transferred. The purchaser does not assume the seller’s liability under this Act (unless the regulations prescribe otherwise). Sellers should finalise their charge account before transferring registration.

8. Extraterritorial application may create double exposure. Section 6 declares that the Act is intended to apply to travel in other States or Territories to the extent of the State’s powers. Other jurisdictions are also considering or have introduced similar road user charges for electric vehicles. A vehicle registered in NSW that travels in, say, Victoria may be subject to NSW charge under this Act and possibly also to a Victorian charge under that state’s law. The Act allows for arrangements under section 27 for collection of payments under other jurisdictions’ laws, but there is no express credit for charges paid in other states. Operators should be aware of the potential for cumulative liability.

9. No fees, but administrative costs may be negligible. Section 30(4) prohibits regulations requiring payment of fees under the Act, and stipulates that regulations for payment of interest and penalties may not include a requirement to pay administrative costs that are more than the costs reasonably incurred in producing notices and statements. This protects operators from unreasonable administrative charges, but it also means that Transport for NSW cannot fund the scheme through fees; it must rely on the charge revenue itself.

10. Transitional arrangements for pre‑2024 vehicles. Vehicles caught by section 9(1)(b) are subject to Schedule 2, clause 1: they are not required to give an odometer reading until the first registration renewal after the relevant date. Clause 2 says that no road user charge is payable for kilometres travelled before the relevant registration date for that vehicle. However, once that renewal occurs, the operator becomes liable for all kilometres travelled from that date forward. This means that an operator who has owned such a vehicle for years without paying any charge will suddenly face a prospective charge from the renewal date. There is no retroactive charge, but the operator must start providing odometer readings immediately. Failure to plan for this may lead to an inadvertent offence.

Compliance with the Electric Vehicles (Revenue Arrangements) Act 2021 requires a systematic approach by registered operators of relevant zero or low emissions vehicles. The following steps, derived from the Act, provide a practical guide.

Step 1: Determine whether the vehicle is a relevant zero or low emissions vehicle. Check if the vehicle falls within section 9. For most operators, the key questions are: (a) Is the vehicle a battery electric vehicle, hydrogen fuel cell electric vehicle, or plug‑in hybrid electric vehicle? (b) Was it first registered on or after the relevant date? If yes, it is a relevant vehicle. If first registered before the relevant date, check whether it was first registered before 1 January 2024 and whether the Duties Act 1997 Chapter 9 exemption was applied on its original registration. The operator may need to review the original purchase and duty payment records. If the vehicle is a heavy vehicle (as defined in the Road Transport Act 2013) or not required to be registered in NSW, it is excluded.

Step 2: Choose a payment option. Section 16 offers two options: pre‑paid and post‑paid. The pre‑paid option is always available. The post‑paid option is only available if the regulations provide for it and the operator has elected to use it before commencing travel kilometres unpaid. As at the date of the Act, the regulations may or may not have commenced the post‑paid option. Operators should check the current version of the Electric Vehicles (Revenue Arrangements) Regulation or consult Transport for NSW. If the post‑paid option is not yet available, the operator must use pre‑paid.

Step 3: If using the pre‑paid option, manage kilometre purchases. Under section 17, the operator must pay for each 1,000 kilometres (or a multiple thereof) before the vehicle travels those kilometres. The operator must provide a current odometer reading when paying, in a way approved by Transport for NSW. The operator must not exceed the paid number of kilometres unless a reasonable excuse exists. To avoid an offence, the operator should ensure the odometer reading is taken regularly and, when approaching the paid limit, either purchase additional blocks or stop using the vehicle. If an overrun occurs, the operator must ensure it does not exceed 500 kilometres and pay the additional charge within 21 days of receiving written notice from Transport for NSW. The operator should not wait for a notice; it is safer to top up the account before reaching the limit.

Step 4: If using the post‑paid option, submit regular odometer readings. The operator must give Transport for NSW a current odometer reading at intervals prescribed by the regulations (section 18(3)). The operator should set up a reminder system to submit readings on time. Failure to do so is an offence with no stated reasonable excuse defence. The approved method of submitting readings may be an online portal, a mobile application, or another device or system approved under section 23. Section 17(6) requires that at least one approved method must not involve automatic transmission without operator intervention, so manual submission should be available.

Step 5: Provide odometer readings at key events. Regardless of payment method, section 19 requires odometer readings to be given:

• At the time of vehicle registration or renewal of registration, by the person applying.
• Upon sale or disposal, by the seller within the period prescribed by the regulations.
• At other times prescribed by the regulations. Operators should ensure that their processes for registration, renewal, and sale include obtaining and submitting the odometer reading at the time of the transaction. If selling a vehicle, the seller should anticipate Transport for NSW issuing an assessment of charges due or a refund notice (section 20). The seller must pay any assessed charges within 14 days (or a longer period decided by Transport for NSW).

Step 6: Claim deductions for private land travel. Section 14(2)(b) allows a reduction in the number of chargeable kilometres for travel on private land. The operator must provide evidence satisfactory to Transport for NSW. It is advisable to maintain a contemporaneous travel log or GPS data that distinguishes between public road travel and private property travel. The regulations may prescribe specific evidence requirements (section 30(2)(d)). The operator should be prepared to submit this evidence with each odometer reading.

Step 7: Respond to information requests. Under section 24, Transport for NSW may require information or documents within at least 21 days. The operator must comply unless a reasonable excuse exists. Keep records of all communications and submissions.

Step 8: Handle special situations. If the vehicle is stolen, written off, damaged, or under repair, the operator should contact Transport for NSW immediately. Section 21 allows Transport for NSW to assess the charge based on an estimate or to extend time for providing an odometer reading. Do not assume that no reading is needed; obtain a written extension or assessment.

Step 9: Maintain records. Section 30(2)(j) allows the regulations to require records to be kept. Even without specific regulations, it is prudent to keep:

• Odometer reading receipts from submissions.
• Proof of payment for road user charges (receipts, bank statements).
• Logs of private travel with supporting evidence.
• Copies of any notices from Transport for NSW (assessments, refund notices, penalty notices).
• Records of any sales or disposals with odometer readings and dates.

Step 10: Monitor developments. The relevant date may be prescribed earlier than 1 July 2027. The road user charge rate is published annually by Transport for NSW (section 13(4)). New regulations may introduce the post‑paid option, create exemptions, or impose new reporting obligations. Operators should subscribe to Transport for NSW updates or check the website periodically. Also, section 31 requires the Minister to report on battery electric vehicle uptake, which may signal when the relevant date is approaching.

Step 11: Seek professional advice if in doubt. Given the complexity of the relevant vehicle definition and the transitional provisions, operators who are unsure whether their vehicle is caught, or who need to rely on the private land deduction, should consult a legal professional or accountant familiar with NSW road user charges. Ignorance of the requirement to provide an odometer reading or to pay charges in advance will not be a defence, as most offences do not include a reasonable excuse defence.