Victoria refunds $7 million to EV owners following 'unconstitutional' tax – UPDATE

January 19: EV tax refund process commences for affected Victorians

The Victorian government has begun issuing refunds to vehicle owners who paid the state's 'unconstitutional' zero- and low-emissions vehicle road-user tax.

"We are writing to eligible customers directly in January 2024 to advise them of how to apply for their refund," said VicRoads.

To accept the refund, owners must claim it on the VicRoads website by June 30, 2024, using a QR code printed on a letter sent to the registered address of the low or zero-emissions vehicle.

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A communication from VicRoads to affected owners, sent this week, confirms a cheque including the refund amount and "all card payment fees and interest" will be posted in the mail "as soon as possible" once it has been accepted.

In November, Victorian Treasurer Tim Pallas said the refunds would amount to around $7 million, which will be returned to owners of electric, plug-in hybrid and hydrogen fuel-cell vehicles.

Our earlier story, below, continues unchanged.

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November 29: Victoria to refund $7 million after High Court declares road-user tax "invalid"

The Victorian government has confirmed it will refund vehicle owners who paid the state’s 'unconstitutional' zero- and low-emissions vehicle road-user tax.

Treasurer Tim Pallas told reporters the Allan Labor Government would hand back approximately $7 million to electric, plug-in hybrid and hydrogen vehicle owners who paid the tax, with funds to be received in the coming months.

“The advice is we should be repaying those bonds,” said Pallas.

“We’re now going through the process of identifying who it is we need to rebate, and we’ll go through the process of making those returns.”

The decision follows a landmark verdict by the High Court of Australia in October, which declared Victoria’s zero-emissions vehicle road-user tax as “invalid” and unconstitutional.

Pallas said that while “there isn’t an obligation to pay interest”, a “relatively small amount” of interest will be paid on the funds.

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“What is not a relatively small amount is a reimagining of the constitution by the High Court. That is going to cause very substantial problems for every state. We have put this on the agenda to discuss at the upcoming treasurers’ meeting on Friday.”

Shadow treasurer Brad Rowswell told The Age [↗] the Victorian government should refund taxpayers before Christmas.

“The government has known since October that this tax is not a legal tax,” he said. “Why the waste, why the delay?”

Victorian Greens treasury spokesperson Sam Hibbins said the state needs to improve electric vehicle policies, including tighter fuel efficiency standards and re-introduced zero- and low-emission vehicle subsidies.

“We don’t have the sorts of fuel efficiency standards like other countries have, and that’s why it’s so important that the state government now look actually how to make electric vehicles more affordable, not more expensive.”

In June, the Victorian government confirmed its $3000 EV rebate would expire at the end of the 2022/23 financial year, though EV and PHEV owners still receive a $100 registration discount.

The High Court’s landmark finding impacts plans of other states – including NSW, South Australia and Western Australia – to levy a similar charge on zero- and low-emission vehicle drivers.