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The Guardian - AU
The Guardian - AU
Environment
Peter Hannam

Stoush over electric vehicle tax nears Australian high court hearing

Cars and trucks drive along a congested 6-lane highway
‘The case has potentially broad legal implications for the ability of state governments to impose similar taxes,’ Jack McLean said. Photograph: Patrick T Fallon/AFP/Getty Images

A stoush between the commonwealth and states over electric vehicle taxes has moved closer to a high court hearing in a process carrying wide-ranging implications for revenue raising, lawyers say.

In September 2021, two drivers of electric cars launched a high court challenge that argued the imposition of a tax of 2-2.5 cents per kilometre by the Victorian government was unconstitutional because the state does not have the constitutional power to impose such fees.

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