Victorian Government denies secret plan to tax motorists

The Victorian Government has responded to reports it is considering introducing a tax for vehicles with engines over 2.0 litres.

Rumours emerged on social media overnight, suggesting a ‘revhead tax’ would place an additional $300 cost on top of registration fees.

An “inside source” also relayed the information to radio host Tom Elliott on his 3AW program.

Geoff Gwilym, the CEO of the Victorian Automotive Chamber of Commerce, told 3AW he had not heard of any such plans.

A spokesperson from the Premier’s office has confirmed to Drive the rumours were baseless, and the government is not considering any additional fees for motorists.

Victoria is one of the few jurisdictions in the world which has introduced a pay-as-you-go tax for electric vehicles and plug-in hybrids.

Introduced a year ago, the State Government argued the road-user charge was needed to make up the shortfall from battery-powered cars not paying any fuel excise taxes on petrol, diesel, or LPG.

The move was widely criticised at the time, with experts claiming the extra costs disincentivised new-car buyers from choosing zero- and low-emissions vehicles.