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For anyone concerned with the need to decarbonise transport – or with sound economic policy – last week’s High Court ruling might seem like good news.
The court ruled Victoria’s tax on road use for zero- and low-emissions vehicles was unconstitutional, after two electric car drivers challenged the state’s ability to impose excise-type levies.
But given the High Court’s previous track record on constitutional interpretation, there’s a grave danger this decision will be extended to rule out any kind of road user charge. It threatens many other state levies too, from luxury cars to mining royalties.
Why was Victoria’s tax so bad?
EV drivers don’t buy petrol or diesel, which means they avoid the fuel excise that other drivers pay – and which pays for road maintenance.
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