Australia High Court Strikes Down State EV Tax in Major Ruling

Australia’s superior court struck down a state tax levied on electric and low-emission vehicles in a landmark case that clarifies federal and state government taxation powers.

In a majority judgment, the High Court ruled Wednesday that a road-user charge levied on zero- and low-emission vehicles by the state of Victoria was invalid because only the the federal government could impose such a tax under the Australian Constitution.

Since 2021, registered operators of electric, plug-in hybrid electric, or hydrogen vehicles, known collectively as ZLEVs, have been charged to drive them on state and national roads. From July 1 of this year, ...