Make it a flat rate with an exception for vehicles driven less than 5000 miles per year as verified at registration time.  

The price is not really the issue for us, the real problem is that Australia only has about 25 days of fuel reserves. Our government let oil companies close down so called uneconomical refineries and just import 80% of our fuel.. All there has to be is a thought that gas stations can run out without warning and you watch panic take over, people starting to empty grocery shelves like back in Covid. Crazy how people get their advice/news on X and YouTube…

https://fordauthority.com/2026/03/ford-ceo-jim-farley-apparently-made-big-decision-in-australia/

I prefer this method as opposed to big brother tracking my miles driven.   One could argue that a registration surcharge is unfair because low mileage drivers are subsidizing high mileage drivers. One can also argue that today's fuel tax (on each gallon purchased) is unfair because pickup drivers subsidize Corolla drivers. And then there is the issue where some farmers illegally fill their passenger cars with their agriculture gas/diesel which is not taxed. And then there will be people who figure out how to disable (or under report) big brothers mileage tracking system.   The arguments and issues are endless, but the registration surcharge has the least complexity and is less susceptible to illegal circumvention.

Also, most U.S. states have registration surcharges for EV and/or hybrid vehicles.     In my home state of Indiana, the rates are: $242 (indexed) annual registration fee for electric vehicles.  $81 (indexed) annual registration for hybrid vehicles.  Registration fees will be indexed every five years against the consumer price index (CPI).   

But your forgetting states also set fuel tax rates-for years NJ had low fuel tax rates that made our gas cheaper to buy then PA or NY. about 15 years ago that all changed and now they charge something like .30 cents per gallon. 

I agree! Mileage-based fees are the fair way to go. Even an Equivalent Fee based on the Gas tax makes sense.  The Elephant in the room is that the gas tax has not kept up with inflation, and was last raised in 1996, the year I graduated high school.

I view Rivian as a more "elevated" brand - maybe not full on luxury, but not "average" brand either......whoever said Mazda/Buick probably has good comparison.

Agreed - the only "fair" way to do it is on mileage - drive more, pay more.   But I'm also understanding of people not wanting the gov't "tracking" them (as if they can't already lol).   I do agree that EVs should at least pay something.   Maybe a solution is to determine the yearly average value a gas powered model would pay (the article mentioned $88 above) and just apply that across the board for EVs?

Bingo.  The only reason it started as a fuel tax is it was easier to regulate and collect and consumers don't really notice it compared to a separate annual tax bill.   But it should be closer in cost to the old tax.