Victoria leads charge for electric vehicle tax despite concerns

Victoria wants all states to introduce a controversial electric vehicle tax, despite concerns over the plan, leaked documents show.

Victoria is leading the push for all Australian states to tax electric vehicle owners with a road usage fee, according to a leaked document.

A briefing paper created by Victoria and presented at the Board of Treasurers earlier this year revealed the state urged all jurisdictions to introduce the controversial electric vehicle tax at the same time, despite concerns it would discourage ownership of electric vehicles in Australia.

The working group document also noted a slick marketing campaign would be needed so the “public buy in and (adhere) to the new changes” and that the scheme would require legal advice with “potential constitutionality issues”.

Victorian Treasurer Tim Pallas announced in the November state Budget a 2.5 cent/km charge would apply to electric and zero-emission vehicles. Picture: David Caird

It was circulated to the inter­governmental working group before South Australia became the first jurisdiction to announce the tax in October.

Victorian Treasurer Tim Pallas said in the November state budget a 2.5c/km charge would apply to electric and zero-emission vehicles, and a 2c/km charge to plug-in hybrid-electric vehicles. NSW would consider the tax, while the ACT was opposed.

The Australia Institute’s Climate and Energy program director Richie Merzian said it was “disappointing that the Victorian government has been leading this secretive process” over the past year.

“There are real risks associated with the introduction of a new tax on electric vehicles,” he said. “Privacy issues, practical difficulties, constitutional concerns and discouraging the uptake of EVs are just a few of the problems highlighted.

“Why were they developing this policy behind closed doors and why has there been no consultation with industry and interested stakeholders?”

Mr Pallas said he was proud of “advocating for fair and sensible change that makes sure all motorists pay their fair share for the record investments in Victorian roads network”.

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