Australia Supreme Court Rules Against Electric Vehicle Levy, Setting Precedent for Other States
Australia’s highest court has ruled against a levy imposed by the state of Victoria on electric vehicles (EVs), in a decision that could have implications for similar legislation in other states. The levy, which was introduced in 2021, imposed a charge of between A$0.02 and A$0.025 per kilometer traveled in EVs. However, following a case brought by two EV owners, the High Court determined that Victoria’s excise duty can only be levied by the federal government.
The court’s ruling is expected to set a precedent that will make it more challenging for other states to introduce their own levies on EVs. David Hertzberg, the lawyer representing the plaintiffs, emphasized the significance of the decision, stating that its implications would be far-reaching.
The states of New South Wales and Western Australia had previously announced plans to implement similar legislation. However, this ruling may complicate their efforts to do so. The case also received widespread opposition from various stakeholders, including car manufacturers, motorist groups, electrical companies, and environmental organizations.
Critics of Victoria’s legislation had called it the worst electric vehicle policy in the world. They argued that penalizing Australian motorists for choosing cleaner and less polluting transport technology was counterintuitive. Following the decision by the High Court, Noah Schultz-Byard, the South Australian director at the Australia Institute, a public policy think tank, expressed his support for the ruling.
The legal battle over the EV levy highlights the ongoing debates and challenges surrounding the promotion and adoption of electric vehicles. While proponents of EVs argue for their environmental benefits and potential to reduce carbon emissions, opponents often express concerns about their cost and the need for appropriate infrastructure and policy frameworks.
As Australia continues to navigate these discussions, the court’s decision in favor of the EV owners could influence the approach taken by other states considering similar levies. The ruling underscores the need for a consistent and coordinated approach to EV policy at the federal level, taking into account the implications for consumers, industry, and the environment.
In conclusion, Australia’s Supreme Court has invalidated the state of Victoria’s levy on electric vehicles, signaling a setback for other states seeking to implement similar legislation. The ruling emphasizes the importance of federal involvement in determining and implementing policies related to EVs. As the country strives to accelerate the adoption of electric vehicles, finding a balanced approach that addresses environmental concerns while supporting consumers and industry will be crucial.
