The High Court has declared that state taxes on electric vehicles in Victoria, New South Wales, and Western Australia are illegal. The court ruled that only the Federal Government has the authority to levy taxes on goods. Under the Victorian system, electric vehicle owners had to submit their odometer readings and were charged 2.8 cents per kilometer traveled. Failure to comply could result in automatic charges or registration suspension. The court's decision highlights the exclusive power of the Commonwealth to impose taxes on goods.
Victoria had been the only state to levy owners of electric vehicles , but New South Wales and Western Australia were set to follow in the next few years.
The first is that “there is no sound rationale for the assertion that a tax on goods in the hands of the consumer is, for that reason alone, not a tax on goods as articles of commerce”. But according to the Australian Automobile Association, the proportion of fuel excise set to be returned to land transport infrastructure will decrease to 88 per cent in 2025-26.The rest of it is invested by the Commonwealth in road projects where it sees fit.
High Court State Taxes Electric Vehicles Illegal Federal Government Victoria New South Wales Western Australia Odometer Charges Registration Suspension Commonwealth
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