Biplab Das 
Australia’s highest court has ruled against the state of Victoria’s levy on electric vehicles (EVs), setting a precedent that could impact similar legislation in other states.
Levy Quashed
In 2021, Victoria imposed a levy ranging from A$0.02 to A$0.025 per kilometer traveled by EVs. This tax faced significant opposition and was challenged in the High Court by two EV owners. The court’s decision upheld that only the federal government can impose excise duties, effectively quashing the levy in Victoria.
Implications for Other States
The ruling is expected to have far-reaching consequences, making it more challenging for other Australian states to introduce their own levies on EVs. States such as New South Wales and Western Australia had previously announced plans for similar legislation.
Industry and Environmental Opposition
In 2021, a coalition of 25 car manufacturers, motoring groups, electrical companies, and environmental organizations criticized Victoria’s EV levy, labeling it “the worst electric vehicle policy in the world.” Critics argue that penalizing motorists for adopting cleaner transport technologies contradicts environmental goals.
The High Court’s decision is seen as a win for electric vehicle adoption in Australia, with proponents hoping it will encourage the development of more EV-friendly policies.
