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.