Australia’s High Court has overturned Victoria’s distance-based levy on electric and hydrogen vehicles, a decision that invalidates a 2021 law charging drivers per kilometre for zero and low emission cars. The ruling removes a state-level charge that had been set at 2.8 cents per kilometre for battery-electric and hydrogen vehicles, and 2.3 cents per kilometre for plug-in hybrid electric vehicles.
What the court decided
In a majority judgment, the High Court found the Victorian scheme to be constitutionally invalid, a result that will be welcomed by EV owners who challenged the law. The judgment concluded that the state did not have lawful authority to impose the specific road-user charge as framed, and that the legislation could not stand. The decision may discourage other Australian jurisdictions from pursuing similar state-level levies on electric vehicles.
Reactions and implications in Australia
Industry groups framed the outcome as a win for motorists and for policies that support EV uptake. Observers pointed out that the ruling does not end discussion about how to fund roads, but it does highlight limits on how states can structure charges aimed at low- and zero-emission vehicles. Several commentators urged that any road-funding reform should be developed at a national level so it applies consistently across vehicle types and jurisdictions.
Why New Zealand drivers should pay attention
The ruling is relevant to New Zealand because a new RUC regime for electric vehicles is scheduled to begin on 31 March 2024. That system is intended to recoup revenue lost from petrol excise taxes as more driving shifts to electricity. The Victorian case demonstrates a legal and political risk for distance-based or vehicle-specific levies, and it may shape public debate here about equity, compliance, and the effect of charges on EV adoption.
Compliance and operational considerations
For fleets and drivers in New Zealand, the Australian judgment is a reminder to prepare for the practical aspects of any RUC change. Bodies administering distance-based charges need clear legal foundations, consistent rules across vehicle types, and straightforward compliance processes to avoid uncertainty. Policymakers will also need to balance revenue goals with incentives to reduce emissions.
