A proposed electric vehicle road user charge in WA is likely to be powered down after the High Court of Australia found a Victorian equivalent of the tax to be unconstitutional.
A proposed electric vehicle road user charge in Western Australia is likely to be unplugged after the High Court of Australia found a Victorian equivalent of the tax to be unconstitutional.
The decision on Wednesday comes after two Victorian plaintiffs launched action arguing it was not within the state’s power to implement a road user charge on drivers under Australia’s constitution.
Victoria had charged EV drivers between two and 2.5 cents per kilometre.
However, a majority of the High Court on Wednesday ruled only the federal government had the power to impose customs and excise taxes, potentially throwing other state-based taxes on the likes of gambling, vehicles and housing into question.
The WA government had planned to introduce a similar 2.5-cent-per-kilometre charge tied to inflation on electric and hydrogen vehicles in 2027.
Premier Roger Cook said the state government would consider the ruling’s implications on state-based excises, including the proposed EV road user charge.
“Obviously the high court position is a hard stop on the Victorian government's decision in relation to the taxes on electric vehicles,” he said.
“We need to make sure that any fees and charges that we've charged that we are levying on WA public are consistent with our rights and obligations as a sub jurisdiction in Australia.
“I think the federal government does have a role to make sure that we have a nationally consistent road user charge so that we can create consistency across the country.”
Mr Cook said governments needed a way to ensure all road users were contributing to road network funds.
