Victoria becomes first state to tax electric vehicle drivers

Victoria has become the first state to introduce a new controversial tax that will leave some motorists very unhappy.

Victoria has become the first state in Australia to tax electric vehicle drivers after the legislation passed through parliament on Tuesday night.

The Andrews government’s electric vehicle tax passed without amendment in the upper house and will mean electric vehicle drivers will pay 2.5 cents for every kilometre travelled from July 1.

Despite strong opposition from the Victorian Greens party, the Bill passed 19-14.

Support of crossbenchers, including Reason Party MP Fiona Patten and Animal Justice Party MP Andy Meddick, helped get the Bill over the line.

Greens MP Sam Hibbins said the tax would make Victoria a “global laughing stock”.

“This is climate vandalism in the midst of a climate crisis,” the party‘s transport spokesman said.

“This was a big test for the upper house, and they failed. Rather than stand on the side of climate action and the Victorian people, they decided to roll over and stand for nothing.”

Electric vehicle drivers in Victoria will pay 2.5 cents for every kilometre travelled from July 1. Picture: Frederic J. Brown/AFP

The tax is expected to raise $30 million over four years and is forecast to cost the average electric vehicle owner between $260 and $300 annually.

South Australia was the first state to announce a plan to introduce a user charge on electric vehicles, but it has been put on hold until July 1, 2022.

Originally published as Victoria becomes first state to tax electric vehicle drivers