High Court of Australia strikes down Victorian Road User Charge

[#Metro]

The High Court of Australia has ruled on Wednesday 18th October 2023 that the Victorian Government's distance-based charging of electric vehicles was a duty or excise, and thus invalid under s.90 of the Australian Constitution.

The effect of this ruling is to exempt owners of Electric cars from paying road user charges that contribute to a general tax pool.

Question 1: Is s 7(1) of the Zero and Low Emission Vehicle Distance-based Charge Act 2021 (Vic) invalid on the basis that it imposes a duty of excise within the meaning of s 90 of the Constitution?

Answer:    Yes.

References

PBO
https://www.pbo.gov.au/about-budgets/budget-insights/budget-explainers/fuel-taxation-australia

Legal Citation: Vanderstock & Anor vs State of Victoria [2023] HCA 30 
https://www.hcourt.gov.au/assets/publications/judgment-summaries/2023/hca-30-2023-10-18.pdf

[ozbob]

Nothing stopping the Federal Government to act, and they have already indicated they will.  As fuel excise dries up they will replace it.

[ozbob]

https://x.com/Dr_CGJones/status/1714528966273638558?s=20

[ozbob]

https://x.com/urbanizationist/status/1716334877124264364?s=20

[SurfRail]

^ Unfortunately that isn't the HCA's job.  This is why we have Parliament.

[AnonymouslyBad]

Weird decision by the HCA as it's no more a "duty or excise" than a toll road is. What precedent does this set for e.g. congestion pricing? Both economically and socially that serves the function of an excise, even though it's charged directly to the road user.

Regardless, the Victorian EV charge was very strange and regressive policy and I'm sure an administrative nightmare. It's probably good that it's gone. The question is what will replace it...... personally I think EV uptake is still at the stage it should be encouraged, even though EVs are not the "solution" to anything.