The Commonwealth is supporting a authorized problem in opposition to Victoria’s distance-based levy, with the victors set to control income elevated from battery-run cars.


The Federal Federal government has formally backed a lawful bid seeking to get rid of a levy imposed on electric powered cars (EVs) and plug-in hybrid automobiles (PHEVs) registered in Victoria.

According to a report in The Age, federal Attorney-Standard Mark Dreyfus last 7 days filed an intervention in the Higher Court docket, supporting a case tough the state’s electrified automobile levy.

From 1 July 2021, motorists in Victoria driving EVs and PHEVs were required to pay out 2.5 cents and 2 cents respectively for just about every kilometre pushed – escalating to 2.6 and 2.1 cents from 1 July 2022.



Although business bodies slammed the conclusion at the time, the Victoria Government reported the levy was built to recuperate shed gas excise revenue from battery-powered cars and trucks, some of which goes to street infrastructure tasks in the state.

Irrespective of numerous in the field criticising the distance-centered levy as disincentivizing the adoption of zero- and reduced-emissions vehicles, the Victorian Government’s choice to introduce the levy might have been a political and authorized tactic.



Its introduction could produce a precedent that would enable ensure all funds collected through this technique goes straight into the state’s coffers, fairly than remaining funnelled to – and subsequently dispersed by – the Federal Federal government.

Somewhere around $12 billion from the fuel excise is collected by the Commonwealth annually, with that determine expected to decrease as motorists make the shift into battery-electrical autos in the coming years.

The Superior Court problem was released towards the Victorian Government in September 2021 by two EV entrepreneurs, who claimed the point out did not have the constitutional ability to impose the levy, with the Federal Authorities now formally supporting the authorized campaign.



Regardless of the federal lawyer-standard submitting an intervention in support of the case, the report states attorneys-normal from all other states have intervened to assist Victoria’s defence – with both of those NSW and Western Australia now announcing programs to introduce a road-consumer demand in the upcoming.

Ben Zachariah is an expert author and motoring journalist from Melbourne, possessing labored in the automotive field for far more than 15 decades. Ben was formerly an interstate truck driver and finished his MBA in Finance in early 2021. He is thought of an pro in the place of traditional car or truck expenditure.

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