The electric vehicle road usage tax in Victoria has been struck down by the Australian High Court, a big win to the owners of electric cars and the grander goal of using clean means of transport in the country.
Court Ruling Details
– The High Court held that a tax can be imposed as an excise tax by the federal but not by the state governments under the Australian Constitution.
– Victoria EV tax, imposing rates of up to 2.8 cents per kilometre on the owners of electric and plug-in hybrid vehicles was declared as being unconstitutional by an appeal against the tax made by two EV drivers. The court also deemed the levy far too directly tied to the ownership and use and consumption of goods (electricity used in EVs), and excise duties are the subject of federal laws.
Many attempts were undertaken and goal-oriented approaches were taken to determine the impact of owning an electric vehicle.
– No longer will all the Victorians EV and plug-in hybrid drivers have to pay the road user charge, removing a financial constraint on the users of the green vehicles.
The decision given has a national precedent implying it is extremely hard to have other states create a similar per-kilometre tax on EVs. Environmentalists, lobby and industry groups feel that this will accelerate the EV adoption, prompt governments to increase the subsidies and charging networks, and create an integrated approach to EV in Australia overall.
Policy Implications
– The federal government is now pressuring to come up with uniform, fair policies of taxing and incentivating EVs within the country in line with Australian climate and green technology objectives.
– Victoria has been directed to pay legal expenses, and the case incites long-standing discussions on the financing of road upgrades and the balancing of fuel excise in the face of an increase in EV uptake.
| Detail | Ruling Outcome | Effect on EV Owners | Policy Implications |
|---|---|---|---|
| Victoria EV Tax | Declared unconstitutional; struck down | No road-user charge applies | Federal gov. must set future EV policies |
| Court Finding | Only Commonwealth can levy excise/taxes | Previous charges nullified | States prevented from similar EV taxes |
| Impact | Big win for EV adoption and incentives | Increased affordability | Push for national standardization |
This outcome is a milestone phase of the future of electric vehicles in Australia and an arrival of the era of national policymaking as the nation transition to a more environmentally friendly transport and climate portfolio.
