Federal Government challenges Victoria’s EV tax in High Court – report

The Federal Authorities has formally backed a lawful bid trying to get to do away with a levy imposed on electric motor vehicles (EVs) and plug-in hybrid vehicles (PHEVs) registered in Victoria.

According to a report in The Age, federal Lawyer-Common Mark Dreyfus last 7 days submitted an intervention in the Substantial Court docket, supporting a circumstance complicated the state’s electrified vehicle levy.

From 1 July 2021, motorists in Victoria driving EVs and PHEVs had been needed to shell out 2.5 cents and 2 cents respectively for just about every kilometre driven – growing to 2.6 and 2.1 cents from 1 July 2022.

Whilst sector bodies slammed the selection at the time, the Victoria Govt said the levy was designed to recuperate dropped fuel excise revenue from battery-powered cars and trucks, some of which goes toward street infrastructure initiatives in the point out.

In spite of a lot of in the field criticising the length-primarily based levy as disincentivizing the adoption of zero- and lower-emissions vehicles, the Victorian Government’s choice to introduce the levy may possibly have been a political and legal tactic.

Its introduction could make a precedent that would help guarantee all cash gathered through this method goes straight into the state’s coffers, relatively than staying funnelled to – and subsequently dispersed by – the Federal Federal government.

Around $12 billion from the gas excise is collected by the Commonwealth per year, with that determine expected to decrease as motorists make the change into battery-electric powered cars in the coming yrs.

The Superior Courtroom problem was introduced in opposition to the Victorian Federal government in September 2021 by two EV entrepreneurs, who claimed the point out did not have the constitutional power to impose the levy, with the Federal Governing administration now formally supporting the legal marketing campaign.

Irrespective of the federal legal professional-standard submitting an intervention in support of the situation, the report claims attorneys-general from all other states have intervened to aid Victoria’s defence – with equally NSW and Western Australia previously saying plans to introduce a street-consumer cost in the foreseeable future.