Victorian Tax on Electric Cars Overturned: What's Next?
Victorian Tax on Electric Cars Overturned: What's Next?

Victorian Tax on Electric Cars Overturned: What’s Next?

October 19, 2023

In a landmark decision that’s got everyone talking, the High Court of Australia has ruled against Victoria’s controversial electric vehicle (EV) tax. The tax, which charged EV owners based on the distance they traveled, was deemed unconstitutional. This ruling has far-reaching implications, not just for Victoria but for all of Australia.

The High Court’s decision has effectively put the brakes on similar taxes in other jurisdictions. The court determined that the tax was essentially an excise, which only the federal government has the authority to impose. Is the federal government contemplating its own electric vehicle tax, or could this be the turning point that propels Australia toward broader adoption of electric cars?

The Plaintiffs and Their Fight

Electric car owners Christopher Vanderstock and Kathleen Davies were the driving force behind this High Court challenge. They argued that the tax was not only unfair but also counterproductive to Australia’s efforts to reduce carbon emissions. The court, in a 4-3 decision, sided with them, declaring the tax unconstitutional.

Both Vanderstock and Davies were elated with the outcome. Davies, in particular, expressed her excitement, stating that she was “thrilled” to have won the constitutional challenge. She also welcomed more discussion about tax but described the EV levy as “ad hoc.”

Federal Government, It’s Your Move

This High Court ruling has put the federal government squarely in the spotlight, nudging it to finally take a clear stance on electric vehicle taxation. Up until now, we’ve had a hodgepodge of state-level rules that have left EV owners scratching their heads.

But there’s a word of caution in the wind; some think the tax might discourage Joe and Jane Public from ditching their gas guzzlers, which could throw a wrench in Australia’s plans to cut down on carbon emissions.

What’s Next on the Horizon?

The Electric Vehicle Council (EVC) celebrates this as a monumental win for both eco-friendly drivers and the Earth. They foresee that this High Court ruling will serve as a cautionary tale for other states and territories in Australia, making them reconsider before slapping similar financial impositions on electric vehicle owners.

Financial Implications and Forthcoming Policies

The Victorian government had initially banked on this tax to funnel in a sum of around $30 million. With the court’s verdict now in place, they’re left grappling with a noticeable budgetary void. This could compel a reevaluation of how they allocate funds for road upkeep, especially as electric vehicles become an increasingly common sight on Australian roads.

This landmark ruling also lays the groundwork for a harmonised, national framework for electric vehicle taxation and incentives. It’s a defining moment for the federal government to navigate Australia toward a more eco-conscious future.

FAQs on High Court Ruling on Victoria’s Electric Vehicle Tax

  1. What’s the High Court’s Verdict on Victoria’s EV Tax?
    • The High Court declared Victoria’s electric vehicle tax unconstitutional, shaking up the landscape for similar levies across Australia.
  2. Who Took the Case to Court?
    • Electric vehicle owners Christopher Vanderstock and Kathleen Davies led the legal challenge, claiming the tax was detrimental to Australia’s climate objectives.
  3. What’s the Federal Government’s Next Move?
    • The ruling has intensified the spotlight on the federal government, raising questions about whether they’ll introduce a national electric vehicle tax or use this as a catalyst to boost electric vehicle adoption.
  4. How Does This Affect Victoria’s Budget?
    • The Victorian government now faces a budget gap, as they had anticipated approximately $30 million in revenue from this tax. This could lead to a reevaluation of road maintenance funding.
  5. What’s the Electric Vehicle Council’s Take?
    • The Electric Vehicle Council celebrates the ruling as a monumental win for both eco-conscious drivers and the planet, expecting it to serve as a cautionary tale for other states contemplating similar taxes.

Recent Posts

CompareEV is dedicated to helping Australian's find the right electric vehicle for them to fit in with their budget and lifestyle. With our easy to use search and compare functions we have all the information you need in one spot
Copyright © 2022. All rights reserved.