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State based EV road user charge (Overturned 18/10/23)

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According to the article, all the States have “intervened to support Victoria” because clearly they want to protect this potential revenue stream too. So that would suggest the Commonwealth would take exactly the same position against NSW.
Yes, I thought Victoria would be the stalking horse for the rest of them. I guess they are starting with Victoria because their tax is already in place. Has SA started yet?
 
Well done to Chris Vanderstock. I hope this video is widely broadcast and that all who agree with him, and can afford it, give to the fund raising via
 
Yes, I thought Victoria would be the stalking horse for the rest of them. I guess they are starting with Victoria because their tax is already in place. Has SA started yet?

The new ALP government in SA plans to abolish the RUC (although it hasn’t started yet). NSW and WA RUCs won’t start until 2027. Although NSW’s could start earlier, when 30% of new vehicles sold are zero emissions, which could happen as soon as 2025.
 
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No SA’s is delayed, which is consistant with anything government related in SA

That’s not quite right. The Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill 2022 was introduced into SA’s parliament on 18 May. I don‘t know what the timetable is before it is expected to be passed into law, but there’s no suggestion that the Bill has been delayed or it won’t be passed to my knowledge.

 
That’s not quite right. The Motor Vehicles (Electric Vehicle Levy) Amendment Repeal Bill 2022 was introduced into SA’s parliament on 18 May. I don‘t know what the timetable is before it is expected to be passed into law, but there’s no suggestion that the Bill has been delayed or it won’t be passed to my knowledge.

The question was asked if the tax has started yet. It has not. It was supposed to start on 1 July. It didn’t.
 
The question was asked if the tax has started yet. It has not. It was supposed to start on 1 July. It didn’t.

I’m afraid that’s not correct either. The EV RUC is currently law in SA and under that law the RUC itself will come into effect on 1 July 2027 (not 2022) or when sales of battery electric vehicles are 30% of new motor vehicle sales in South Australia. The same approach as in NSW.

See the Act:


The saving grace here of course is the Act can be repealed well before anyone would be required to pay the RUC.
 
According to the article, all the States have “intervened to support Victoria” because clearly they want to protect this potential revenue stream too. So that would suggest the Commonwealth would take exactly the same position against NSW.
They've all intervened because the implications are considerably wider than just road usage charges. The argument seems to be about s90 of the constitution:

On the imposition of uniform duties of customs all laws of the several States imposing duties of customs or of excise, or offering bounties on the production or export of goods, shall cease to have effect,...

(This is why the original state-based fuel taxes were removed in 1997 - the High Court ruled a NSW license fee for tobacconists based on the value of tobacco sold was an excise and therefore can't be levied by a state, which implied that the state fuel taxes were as well).

If the road usage charge is ruled an excise as well, depending on the reasoning it could imperil a bunch of other state-based revenue sources. The states have enough trouble as it is with their spending responsibilities exceeding their powers to raise revenue. They'd have intervened whether or not they specifically wanted to implement a RUC, because of these wider implications.
 
Yes. I’m not a lawyer, but to me the RUC is a charge or levy on the use of a good, not the good itself. Which would not make it an excise. But the High Court will know more about this than I 🤣
This has seemingly become a very narrow constitutional law battle (for at least some of the issues) - which is rarely litigated in the HC.
If Vic loses I suspect the States will not be happy.

I think the question arguably becomes where a good is intended to be used (eg. A car being driven, or a box of breakfast cereal or milk being consumed) should that leave any additional state powers. I mean imagine if Vic asked for $1 per cereal box and 25c per container or carton of milk.

In addition the Vic legislation seemingly allows an exclusion for private roads (but not interstate roads) but their system does not, at least easily, provide an allowance for this, which I suspect the HC might find interesting.
 
I mean imagine if Vic asked for $1 per cereal box and 25c per container or carton of milk.
You mean like the 10c per container fee (sorry, "deposit") for disposable drink containers that every state except Tasmania and Victoria currently levy? This might be an example of the kind of thing that the states feel could be at risk if they lose the case.
 
Basically Vic Libs will get rid of the tax if elected.

I’ll put that one up there with the WA LNP promising to close down all of WA’s coal-fired power stations by 2025 at last year’s state election. They knew they couldn’t win, so instead were trying to out-Labor Labor, for what purpose I don’t know. Just to do something unexpected in order to get some oxygen? 🤔
 
In addition the Vic legislation seemingly allows an exclusion for private roads (but not interstate roads) but their system does not, at least easily, provide an allowance for this, which I suspect the HC might find interesting.

Consider the case of an EV owner in Wodonga who might travel over to Albury every day for work, etc. Hypothetically, lets says 50% of their driving is in NSW. Would Victoria remit 50% of the collected RUC to NSW? Not very likely!
 
Yes. I’m not a lawyer, but to me the RUC is a charge or levy on the use of a good, not the good itself. Which would not make it an excise. But the High Court will know more about this than I 🤣
Pretty much spot on, unfortunately. While I think the tax is bad policy, I don't think it's invalid. The HCA would have to extend pretty radically the definition of excise as settled in Ha from an inland tax on a step in production, manufacture, sale or distribution of goods to a tax on the use of goods after sale. That is not going to happen, as you'd obliterate the distinction between a tax and an excise. And if you did that, you would be imperilling land tax and stamp duty. The validity of the extraterritorial aspect of taxing use in another State is more interesting.
 
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