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The Guardian - AU
The Guardian - AU
Environment
Paul Karp, Peter Hannam and Benita Kolovos

Warning of billion-dollar hit to state revenues after high court strikes down Victorian EV tax

Electric vehicles charging at a station.
The high court ruling on the electric cars tax will likely prevent NSW and Western Australia from proceeding with plans to introduce road user charging from 2027, but could imperil other state-imposed levies. Photograph: Jennifer Dudley-Nicholson/AAP

A potential revenue hit worth “billions” has been flagged by the New South Wales government as a result of the high court ruling striking down Victoria’s electric vehicle tax, as state and territories scramble to understand its full impact.

On Wednesday a majority of the high court ruled Victoria’s road-user charge for EV drivers was unconstitutional because the states did not have the power to impose excise taxes on consumption.

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