Victoria’s contentious EV tax takes effect today

The Victorian State Government’s controversial electric vehicle tax has officially taken effect.

From today, July 1, electric vehicle owners will pay 2.5c for every kilometre they travel in their environmentally-friendly vehicles.

The Victorian Government argues the tax is necessary as electric vehicle owners aren’t paying any fuel excise for their personal mode of transportation, despite the fuel excise being a federal tax while the EV tariff is not.

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Plug-in hybrid electric vehicle (PHEV) meanwhile get hit twice, as they now have to pay for both fuel excise and also 2c for every kilometre they travel, even though most PHEVs have a minuscule electric driving range compared to full battery-electric vehicles (BEVs).

It’s also bad news for early EV adopters living in regional Victoria, as there are no concessions made for the blanket per-kilometre tax, despite things being spread a little bit further apart outside the confines of the CBD.

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The implementation of the tax has been widely criticised, in part because it requires owners to take photos of their car's odometer, which must then be sent to the state's highway authority.

As Whichcar previously reported, according to the Labour Government, failing to comply with the new policy could “result in penalties, including the suspension and cancellation of a vehicle's registration".

Despite this, however, the Victorian Government hasn’t stipulated whether this excise will apply to travel on a different state’s road infrastructure, which poses another potential headache for regional Victorians living in border towns.

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The EV tax's implementation, which was hotly debated in Parliament when it was first proposed, follows recent news the Labour Government will also introduce an EV incentive policy.

Under the scheme, buyers will be eligible to receive up to a $3000 subsidy when purchasing an electric vehicle valued up to $68,740.

The incentive program will reportedly cover up to 4000 electric vehicle sales in 2021 and a total of 20,000 EV sales over the next three years.

What do you think of Victoria's EV distanced-based charge? Get in touch: james.robinson@aremedia.com.au