High Court Applies Brakes on Extra Tax for Electric Cars: A Game-Changer for Sustainable Mobility

• October 21, 2023
• Category: Electric Cars, Extra Tax

We come bearing exciting news from the High Court that promises a significant shift in the realm of electric and hybrid vehicles! The court has recently put a halt to Victoria’s plan to impose an additional charge on owners based on their electric vehicle’s mileage. This decision carries considerable weight for those with an eye on environmental sustainability and a preference for eco-conscious vehicles. Let’s delve into the details!

Victoria's Attempted Levy

The State of Victoria had previously proposed an extra charge for electric and hybrid vehicle owners, in addition to the standard road usage fees. Starting from July 1, 2021, Victoria rolled out the ZLEV distance-based charge. This meant electric or hydrogen car owners had to pay an extra 2.8 cents for every kilometer traveled, while plug-in hybrid drivers were charged 2.3 cents per kilometer. Furthermore, owners of plug-in hybrids in Victoria had to cover both the Federal Government's fuel excise during petrol fill-ups and the state's road-user tax. This was applicable regardless of whether the vehicle was running on petrol or battery power.

High Court Ruling: A Turning Point

However, the High Court recently ruled that this power lies solely with the Federal Government and isn’t within the jurisdiction of the state.

The case, led by plaintiffs Christopher Vanderstock and Kathleen Davies, challenged the legality of Victoria's levy, and the High Court's judgment not only deemed the tax invalid but also addressed broader implications on state duties related to vehicle ownership. This decision not only caught the industry off guard but also raised critical questions about future funding for road projects.

Refunds and Future Implications

However, the fate of the funds already collected under this policy remains uncertain. Some argue that it should be refunded to those who paid it. We, at Autonomos Group, encourage those who have been affected by the road-user charge to stay informed about potential refunds.

For consumers, the High Court's ruling heralds a new era in electric and hybrid vehicle ownership. It affirms that Australian motorists cannot be taxed by states for driving such vehicles. This landmark decision aligns with a global trend towards incentivizing cleaner modes of transportation.

Your Green Journey Begins Here

For those contemplating the transition to an electric or hybrid vehicle, this development is particularly heartening. It's a win for electric cars and for everyone who wants cleaner, greener roads. And if you're thinking about making the switch to an electric or hybrid car, this news is especially exciting for you.

At Autonomos Group, we remain committed to providing vehicles that align with environmental consciousness without compromising on quality or performance. We proudly offer an extensive range of hybrid vehicles, ensuring our customers have access to eco-conscious choices. For more information on our wide range of hybrid vehicles and our commitment to sustainable mobility, please contact us today.

Your journey towards a greener, more sustainable future begins here!