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High Court rules Victoria’s “World’s Worst” EV Tax Unconstitutional
The High Court has ruled Victoria’s EV tax unconstitutional in a stunning rebuke of the Victorian Government’s decision to tax users of low or zero emission vehicles. The state government is now set to decide what to do with the ZLEV road-user charge.
The Court ruled that the ZLEV road-user charge is a clear tax on the use of an EV, which can only be imposed by the federal government, falling within the ambit of Section 90 of the Australian Constitution which says only the Commonwealth can imposes taxes on Australians. It said Victoria’s interpretation of the Constitution was wrong and that it did not have the power to tax Victorians.
The ZLEV road-user charge taxes electric and hydrogen vehicle owners 2.8c for each kilometre they travel during the year, and plug-in hybrid vehicle owners 2.3c for each kilometre. Hybrid vehicles are exempt.
Owners are required to submit photographs of their vehicle odometer to the state government each year. If they fail to do so, their registration can then be suspended and cancelled.
The landmark was brought by electric vehicle owner Chris Vanderstock and engine
High Court dumps Victoria’s “world’s worst” EV road tax
The Australian High Court has ruled that Victoria’s EV tax is unconstitutional and has directed the state government to pay costs in a decision that will have broad ramifications for the industry.
The court ruled that the tax is not “a licence or permit fee” for an activity that comes under a regulatory scheme — as Victoria tried to argue — but a tax on the use of an EV, which can only be imposed by the federal government.
It called Victoria’s arguments “unpersuasive” and “debunked” its interpretation of the word excise.
However, the full bench did not fully agree, with three of the seven judges dissenting.
The case was brought by electric vehicle owner Chris Vanderstock and engineering consultant Kathleen Davies, who argue the states don’t have the constitutional right to impose this tax.
Their lawyer David Hertzberg called the ruling a landmark constitutional decision.
“Today’s judgment means that Victoria’s electric vehicle tax is invalid. It also sets a precedent which will likely prevent other States from implementing similar legislation,” he says.
Davies is thrilled by the judgement, saying given how far behin
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The South Australian Treasurer’s plan to import Victoria’s electric vehicle tax will cause the state to fall behind other jurisdictions with better EV policies, such as New South Wales and the Australian Capital Territory, The Australia Institute has said.
“The Treasurer may say he’s not in the business of importing taxes from Victoria, but that’s exactly what he’s doing on electric vehicles,” said Noah Schultz-Byard, SA Director at The Australia Institute.
“The Victorian EV Tax has been panned by global auto-manufacturers and industry experts as the world’s worst EV policy.
“The South Australian Government should do a U-Turn on this policy and pursue a far more balanced and measured approach, as the NSW Coalition Government have done.
“Victoria made themselves a laughing stock by introducing an EV Tax early and failing to adequately support consumers and the industry as they did so.
“South Australia should learn from Victoria’s folly, not repeat it.
“With the Federal Government abandoning the EV policy space it has been left up to the states to usher in the clean transport revolution. South Aus
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