Electric vehicle owners launch legal bid against Victorian government tax
A legal fight has erupted over the Victorian government’s electric vehicles tax, with two owners attempting to overturn the “unfair” fee.
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A contentious state tax on electric cars will be challenged in the High Court with two owners launching a legal bid labelling the charges “unfair”.
The case, filed in court on Thursday, will attempt to overturn the road usage fee by arguing it is unconstitutional.
From July 1, owners of electric vehicles registered in Victoria have to pay 2.5c for every kilometre they drive, while a fee of 2c per kilometre applies to plug-in hybrid electric vehicles.
Keilor Private hospital nurse manager Chris Vanderstock is bringing the challenge along with engineer Kathleen Davies. They say the levy is “unfair” and would discourage motorists from adopting the cleaner technology.
“What the Victorian government is doing here is putting the brakes on people getting electric vehicles, it’s a disincentive and it’s the wrong message to be sending,” Mr Vanderstock said.
“We would have better health, a better economy, there’s so many positives going electric that this is something that needs to go.”
Representing the two owners, Jack McLean from Equity Generation Lawyers, said: “Our clients think this is not only a bad piece of policy … they will argue the state of Victoria does not have the constitutional authority to levy attacks of this kind”.
Mr McLean said while the legal bid was aimed at the Victorian levy, the outcome could impact the “validity” of electric vehicles charges in other states.
The government anticipates electric vehicle owners will be slugged an extra $330 each year because of the scheme.
Treasurer Tim Pallas defended the tax saying it ensured everyone paid their fair share for maintaining roads, as electric vehicle drivers do not pay fuel excise collected by the federal government.
“This reform will deliver broad benefits to the public in the long-term, including less congestion, reduced road maintenance expenditure, less urban sprawl and further transport mode shift,” Mr Pallas said.
But Mr Vanderstock disputed this claim, saying people who didn’t drive or own cars already paid for roads they didn’t use through other taxes.
Subsidies of up to $3000 on new electric cars were announced earlier this year to help kickstart ownership, with a target set for zero emission vehicles to make up half of all new car sales in Victoria by 2030.
Infrastructure Partnerships Australia, which represents major firms, has backed the tax calling it “world-leading reform”.
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