High Court dumps Victoria’s “world’s worst” EV road tax
The High Court has ruled Victoria’s EV tax unconstitutional and has told 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, 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.Vanderstock believes the tax actively discouraged Victorians from buying EVs as well as punishing existing EV owners trying to do the right thing.
The original EV road user tax in South Australia prevented EV purchases, with seven out of 10 South Australians less likely to buy one. South Australia abolished its road tax in February as part of an election promise by the new Labor government.
Dubbed the “world’s worst EV policy,” Victorias' EV road tax started in 2021 with a toll of 2.5c/km for battery electric vehicles, and 2.0c/km for plug-in hybrids. They have since risen with inflation (2.8c/km for battery EVs).
The Victorian tax has been a thorn in the side of EV owners. Not only has the rollout been called chaotic and deemed unfair by EV advocates, but at least 240 EVs lost their registration for failing to report their odometer readings.