The High Court of Australia, by a majority, held that the Zero and Low Emission Vehicle (ZLEV) Distance-based Charge Act is unconstitutional, as the state imposed a duty of excise, which only the Commonwealth Parliament has the power to do.
Under the ZLEV charge act, motorists with electric, hydrogen or plug-in electric-hybrid vehicles are required to pay a rate of more than two Australian cents (about 0.01 U.S. dollar) per kilometer.
Car owners have to provide photo images of their vehicle's odometer at the start and end of a registration period. Failure to comply can lead to the suspension and cancellation of vehicle registration and other penalties, including an invoice based on a yearly traveled estimate of 13,500 kilometers.
Only months after the tax was introduced in July 2021, two EV drivers took the state government to court, arguing that it lacks the constitutional authority to impose such a charge.
According to VicRoads, the Victorian government is reviewing the High Court's decision to understand its implications and how the ruling will be implemented.
"We are in the process of contacting all ZLEV customers directly to explain what the decision means for them and any next steps," said the state government agency.
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