Victoria suggests higher registration costs or national charge could replace struck down EV tax

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Victoria suggests higher registration costs or national charge could replace struck down EV tax
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Treasurer Tim Pallas says refunds being considered after high court ruled charge was unconstitutional

Victorian Treasurer Tim Pallas said the high court ruling the electric vehicle tax as invalid could lead to constitutional challenges to other state taxes including car registration, waste levies or on gaming.Victorian Treasurer Tim Pallas said the high court ruling the electric vehicle tax as invalid could lead to constitutional challenges to other state taxes including car registration, waste levies or on gaming.

He said the government was receiving legal advice on whether it would have to refund affected electric vehicle drivers. In the last financial year, the government raised $3.9m from the tax, and less than $10m since 2021. Justice Jayne Jagot, one of the judges in the majority for the 4-3 decision, said the Victorian charge was invalid because it was “a tax, not a fee for service”.

Minns said such charges “generated not just hundreds of millions of dollars, but billions of dollars” for the NSW treasury. It was an “extremely complex ruling”, but at this early stage there were “different readings” of its impacts, he said.

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