In a significant ruling, the Australian High Court has nullified the electric vehicle (EV) road user charges (RUCs) imposed by the state of Victoria. The charges, introduced as the Zero and Low Emission Vehicle Distance-based Charge Act (2021), mandated a levy of 2.8 cents for every kilometre driven by electric or hydrogen vehicles, and 2.3 cents per kilometre for plug-in hybrid vehicles (PHEVs).
Historic ruling
The High Court's judgement came as a relief to EV owners Chris Vanderstock and Kath Davies, who had contested the constitutionality of this road user charge.
The justices, in a majority verdict, found the charge to be unconstitutional, stating that states cannot lawfully tax motorists for driving EVs, PHEVs, and hydrogen cars. This ruling could set a precedent that might deter other Australian states from enacting similar charges on EVs.
Australian implications
Behyad Jafari, the Chief Executive of the Electric Vehicle Council, hailed the ruling as a triple victory for Australian motorists, the environment, and the national interest.
According to Jafari, road user charges are not fundamentally flawed, but their formulation should not deter the adoption of EVs. He advocated for a national scheme that applies to all vehicles, bearing in mind the economic cost of emissions.
This decision, as per Jafari, clears the path for the government to work on a sensible road funding reform, a move aligned with the broader goal of transitioning to EVs and reducing the nation's reliance on imported oil.
What it could mean for New Zealand RUC
The Australian High Court's verdict could spark discourse in New Zealand regarding its own RUC policy for EVs, set to commence on 31 March 2024. The charges aim to offset revenue lost from petrol excise taxes. Like in Australia, the equity of such taxes might be questioned by some sectors, especially if seen as discouraging EV adoption.