Summary: The High Court of Australia has ruled against a controversial tax on electric cars in Victoria, declaring it unconstitutional. The tax, which charges electric vehicle users based on the distance they travel, was found to be an excise, which only the Commonwealth can impose. The ruling prevents other jurisdictions from implementing similar charges.
The High Court has determined that the Victorian tax on electric cars is unconstitutional. The tax, which charges electric vehicle users based on the distance they travel, was found to be an excise, a type of goods tax that can only be imposed by the Commonwealth. The ruling prevents other jurisdictions from implementing similar charges.
Electric car owners Christopher Vanderstock and Kathleen Davies mounted a High Court challenge against the tax, arguing that it was an illegal tax grab and discouraged people from buying electric vehicles. The court agreed with their argument and declared the tax unconstitutional.
The Electric Vehicle Council (EVC) called the ruling a win for motorists and the environment, and expects other jurisdictions to be unable to introduce similar charges. The Victorian Greens called on the state government to refund the tax already claimed from electric vehicle owners and introduce subsidies to encourage electric vehicle uptake. The ruling comes at a time when there are increasing numbers of electric vehicles on the roads and falling revenue for states and territories from fuel excise.
Tags: High Court, Tax, Electric Cars, Unconstitutional, Excise, Electric Vehicle Council, Victorian Greens, Refund, Subsidies, Electric Vehicle Uptake