William Caresser
Club Legend
- Mar 25, 2022
- 2,538
- 6,828
- AFL Club
- North Melbourne
State governments can charge tax for items like rego or stamp duty which aren't related to usage or production, but it's been widely accepted under the law, that they can't tax on usage/production. State government solicitors know (or should have known) that they can't introduce production or consumption taxes - like the Commonwealth's 48 cents a litre on fuel. But the Vic Gov't had a crack at it anyway with their EV consumption tax.Hmmm, I don't know about that.
Any Labor Govt that tried it would be destroyed by a completely bad faith Coalition scare campaign.
And Coalition governments of late haven't shown any ability or inclination for that kind of progressive detailed policy reform.
I agree that sooner or later that revenue gap would need to be filledm but a Coalition govt would be far more likely to fill it elsewhere imo.
The Feds have been waiting for the outcome of this case and Chalmers said previously they'll look at options once the decision was made. The current fuel excise and GST on fuel raises tens of billions over the 4 years and a lot of it is used for roads. There is no way that the Feds will not phase in some type of tax on EV consumption as fuel excise revenues fall. And rightly so - motorists' tax should be commensurate with their usage - ie. how much they contribute to roads deteriorating - as it is now (although as others have mentioned, arguably heavy vehicle usage and other class usage isn't linked accurately). Like any consumption tax though, it is regressive. Doesn't matter if you earn $40,000 a year or $40 million, you will pay the same amount per unit.
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