Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
Business
Jennifer Dudley-Nicholson

Electric vehicle tax hearing recharges political row

Australia's electric vehicle drivers will have to wait months to find out how they will be taxed but a war of words over the issue has continued to rage between state and federal governments.

Victorian Treasurer Tim Pallas accused the federal government of launching "the most craven attempt" to take revenue from state governments on Friday, saying he was disappointed it wanted to "steal great ideas".

Mr Pallas' fiery comments came just one day after the High Court case over Victoria's electric vehicle tax adjourned in Canberra.

The case will decide whether state and territory governments are allowed to charge electric vehicle owners for their use of the roads, replacing a federal excise levelled on petrol and diesel fuel.

Melbourne drivers Kath Davies and Chris Vanderstock launched the legal action in 2021 after the Victorian government started charging electric and plug-in hybrid electric vehicle owners for every kilometre they travelled during the year.

The fee is set at 2.6 cents per kilometre for electric vehicles and 2.1 cents per kilometre for plug-in hybrid cars.

But the court case has become a battle over whether state and territory governments should be allowed to tax EV owners, with the federal government intervening to argue a tax should be charged nationally.

Mr Pallas told a media conference the Albanese government should stay out of the fight as "they don't manage the roads" and the court intervention was unwarranted.

"I've got to say I'm disappointed with the Commonwealth," he said.

"It doesn't get any more craven than this.

"The change in government hasn't changed the attitude. They seem to want to constantly steal great ideas and this is a good idea for economic reform... and turn it into a revenue stream for themselves."

Mr Pallas said critics of Victoria's Zero and Low-Emission Vehicle (ZLEV) road user charge should note the federal government was not arguing that drivers should not be taxed, only that it should collect the revenue.

"They're not, in this case, defending the argument that electric vehicle users shouldn't have to pay a tax, they're saying they should raise it," he said.

"Internal combustion engine users are effectively paying their way."

But the outcome in the case may not be decided until mid-year.

Equity Generation Lawyers senior associate David Hertzberg, who represented the plaintiffs, said the High Court required further submissions before it would make a judgement.

"We won't know the outcome for a number of months - it's with the court now," he said.

"The court ordered the Commonwealth and Victoria to provide further written submissions and then it will deliver its judgement at some point after then."

Submissions are expected to be filed in March and April.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.