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The High Court just slammed the brakes on state-based EV taxes

A High Court of Australia decision that a distance-based charge on electric vehicles in the state of Victoria is invalid threatens similar plans across the country.

Laurel Henning
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David Hertzberg of Equity Generation lawyers (centre) with electric vehicle drivers Chris Vanderstock (left) and Kath Davies (right) speak to the media outside the High Court of Australia in Canberra. Lukas Coch/AAP.

The state of Victoria's efforts to claw back a shortfall in fuel excises incurred from electric-vehicle ownership has been deemed invalid today by the High Court of Australia.

The case, brought by two Victorian electric car owners Chris Vanderstock and Kath Davies, threatens similar plans for state-based charges on distances travelled by low-emitting cars.

In a one-page judgment summary published by the High Court of Australia, the court said the Zero and Low Emission Vehicle Distance-based Charge Act 2021, or ZLEV Charge Act is invalid in part because the Federal Government is responsible for taxes.

States can impose excises and duties, but the court decided the ZLEV is "a tax on goods because there is a close relation between the tax and the use of ZLEVs," including its "tendency to affect demand" for low-emitting cars.