Victoria’s new electric car tax slammed ‘climate vandalism’
Victoria is now the first state in the world to introduce an electric car tax, in some ways decentivising ownership of an electric car thanks to a per-kilometre charge. It has been slammed by the Australian Greens party.
“Labor’s EV tax comes at a time when transport is our biggest growing source of emissions in Victoria and we are lagging behind the rest of the world in the uptake of electric vehicles,” says Victorian Greens spokesperson for transport, Sam Hibbins MP in a statement.
Making its bill official this week, the Labour Government currently led under Daniel Andrews has sealed the deal on the Electric Vehicle Tax.
Effective from July 1 2021, electric vehicle and zero-emissions (say, hydrogen) owners are required to pay 2.5 cents per kilometre travelled, and plug-in electric owners will pay 2.0 cents per kilometre travelled. This equates to around $300-$500 when travelling an average of 10,000 to 15,000km per year.
Electric vehicle owners will still need to pay normal vehicle registration.
The new Victorian EV tax is expected to generate $30 million over four years. The Victorian government has previously provided a subsidy for new EV owners who bought a vehicle after May 2 but the offer is capped to 20,000 buyers and only applies to vehicles that are priced under $68,740.
The contentious tax on the emerging clean-car industry was already met with criticism despite its duty to fill the hole left by electric vehicles not contributing to petrol taxes. Chief among critics is the Australian Greens, which slammed the new tax. Labour is yet to publish a media release since passing the bill in the upper house with the support of cross-benchers.
“Passing the ‘worst electric vehicle policy in the world’ will now make Victoria a global laughing stock, and we will continue to be a laggard in EV uptake,” says Hibbins MP.
“This is climate vandalism in the midst of a climate crisis.
“This was a big test for the upper house, and they failed. Rather than stand on the side of climate action and the Victorian people, they decided to roll over and stand for nothing.
“The Greens will move to repeal this backwards tax on clean air.”