02/05/2026
WILL FULL HYBRIDS BE SUBJECT TO ROAD USER CHARGES IN AUSTRALIA AND WHEN
Yes, hybrid vehicles—both plug-in (PHEV) and traditional hybrids—will be increasingly subject to road tax charges in the future. As governments look to replace declining fuel excise revenue due to more efficient vehicles, new "road-user charges" (or similar taxes) are being introduced to ensure all drivers pay for road maintenance, regardless of vehicle type.Here are the key future trends for road tax on hybrid vehicles, based on policy shifts in Australia and the UK (as of May 2026):Future Road Tax Plans for HybridsDistance-Based Charges (Future): Future taxes are moving away from flat fees toward a pay-per-mile or per-kilometre system.Australia: Plans are underway for a federal road-user charge, with NSW planning to implement a charge from 1 July 2027 (or earlier if EVs reach 30% of new sales). Plug-in hybrids are proposed to be charged roughly 80% of the full electric vehicle rate.UK: From April 2028, the UK government will introduce a mileage-based road-tax charge, with plug-in hybrids expected to pay approximately 1.5p per mile.Fringe Benefits Tax (FBT) Changes (Australia): From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) no longer qualify for the electric car FBT exemption unless they were under a binding commitment before that date. This means new PHEV leases will likely be taxed as conventional vehicles, effectively increasing their tax cost.
