Connected vehicle data key to future Road User Charging system

Sydney, Australia - 19th September 2025

For Immediate Release

Yesterday, Compass IoT hosted a national roundtable, bringing together federal and state policymakers, transport leaders and industry experts to discuss how Australia could implement a fair and digital Road User Charging (RUC) system.

The Roundtable comes as Treasurer Jim Chalmers announced the Australian Government’s aim to introduce RUC for electric vehicles (EVs), signalling a major shift in transport funding. This move follows New Zealand’s recent decision to phase out fuel excise in favour of a digital RUC system for all vehicles. 

RUC offers governments a way to secure long-term transport funding, charging drivers directly for their road use, rather than indirectly through fuel. “We need to make it very clear that this is not charging more,” said Professor Michiel Bliemer, from the Institute of Transport and Logistics Studies at the University of Sydney. “This is replacing existing taxes that are currently in place and are no longer viable or sustainable into the future.”

Existing technologies, like connected vehicle data, were identified to support this system. In Australia, more than 1.2 million connected vehicles already transmit the data needed for RUC. Trials in New Zealand show that leveraging this technology could reduce administration costs by up to 80% compared to manual or paper-based systems.

“If those digital experiences aren’t enabled, then you’re left with clunky implementations which lead to things like lost revenue,” commented Angus McDonald, Co-founder of Compass IoT.

Community acceptance and trust were also identified as critical to RUC’s success by the Roundtable. Ensuring privacy through methods like geo-masking and anonymisation, and clear communication about how funds will be used were emphasised to be vital. 

“If the technology glitches or doesn’t work, it’s very easy to lose social acceptance, which will be crucial for success,” said Silje Troseth, President of ITS Australia.

Policy and governance challenges will remain, particularly following the High Court’s ruling in Vanderstock v Victoria, which ruled that only the Commonwealth could impose an excise on EVs. As CEO of Infrastructure Victoria, Jonathan Spear, observed, “Because of that High Court decision, the ball has been in the Commonwealth’s court for a while, and it’s great to see that ball being picked up in recent months.”

While the shape of Australia’s RUC system is yet to be decided, there was strong consensus for a distance-based model for EVs as a starting point at the Roundtable. 

“Don’t let the perfect be the enemy of the good… if there’s an opportunity to get a reform underway where politicians know it’s only going to affect about 2% of vehicles on the road, so relatively low impact, and is principally about equity…that’s about as low risk as you’re going to get,” said Paul Fletcher, former Minister for Communications, Urban Infrastructure, Cities and the Arts.

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For further information

Teagan McKay

Communications and Media Strategist 

teagan@compassiot.com.au 

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About Compass IoT

Founded in 2018, Compass IoT is a multi-award-winning connected vehicle data aggregator that uses vehicle-generated insights to help transport professionals build better, safer, and more resilient cities. Compass provides granular insights to clients across Australia, New Zealand, North America, the United Kingdom, and Asia. Learn more at www.compassiot.com.au.