Future of Victorian electric vehicle tax up in the air
Dominic Giannini and Jennifer Dudley-Nicholson |
Victorians are set to find out whether they will have to continue paying tax on electric vehicles under a case that could change how states raise revenue.
Engineering consultant Kath Davies and nursing manager Chris Vanderstock have taken the tax all the way to the High Court, arguing it is unconstitutional.
The pair say a tax on electric and plug-in hybrid electric vehicles is not only counterintuitive for their take-up but an overreach in an area where only the Commonwealth can impose an excise.
“I want to see more climate action, not less,” Ms Davies said outside the High Court on Tuesday.
“This tax, in my mind, is a roadblock to reducing emissions and getting better air quality.”
Mr Vanderstock told ABC Radio National the Victorian tax unfairly discriminated against low and zero-emission vehicle drivers and had been introduced too early into their adoption.
“It’s vitally important because this legislation is obviously very much premature and out of step with what the rest of the world is doing,” he said.
“What I hope to come out of this is obviously for this policy to be overturned … and for something that’s a bit more coherent and succinct and actually encourages people into electric vehicles.”
The High Court case comes down to what the definition of an excise is in the constitution and what taxes states have the power to enact.
Lawyer David Hertzberg says the landmark case will have implications for the division of power between the Commonwealth and states.
“If our clients are successful, it will mean Victoria’s electric vehicle tax is invalid and will likely also prevent other states from implementing similar legislation,” he said.
But Victorians are unlikely to know whether they will get a refund if the tax is ruled unconstitutional any time soon.
“It depends on a number of factors and we’ll have to cross that bridge when we get to it,” Mr Hertzberg said.
He also rubbished the suggestion of any hole being blown in the state’s budget.
“The fuel excise is led by the federal government, not the states, so there’s no shortfall as far as Victoria is concerned,” he said.
“This tax is just a cash grab.”
Victorian Premier Daniel Andrews declined to speculate on the state’s electric vehicle tax on Tuesday, telling reporters in Melbourne he would leave analysis to the court.
“That’s a matter for the High Court to determine,” he said.
“It’s not my place, now or ever, to be running a commentary while matters are on foot in court literally as we speak.”
Victoria charges electric vehicle owners 2.6 cents for every kilometre they travel and plug-in hybrid electric vehicle owners 2.1 cents, with users submitting odometer readings annually.
Plans for a similar tax in South Australia were repealed last week after being described as “backwards-thinking”.
NSW and Western Australia have flagged introducing an electric vehicle tax from 2027.
Queensland, Tasmania and the two territories have yet to outline plans for an electric vehicle tax but have written to the High Court to support Victoria’s position.
The case is being heard in the High Court from Tuesday to Thursday.
AAP
