Car maker emissions penalties to be dumped under Coalition pledge to reform New Vehicle Efficiency Standard

Peter Dutton will end Labor’s “car and ute tax” by dumping fines for companies who sell too many high-emissions vehicles – saying it will slash the price of new cars.

Peter Dutton will end Labor’s “car and ute tax” by scrapping hefty fines for companies who sell too many high-emissions vehicles in Australia, saying this will save people thousands of dollars on popular petrol cars.

The Opposition Leader will on Friday announce if elected he would remove the financial penalties attached to the New Vehicle Efficiency Standard introduced by the Albanese Government, which was designed to incentivise manufacturers to import greener hybrid and electric cars from July 1.

No specific model or type of car was banned under Labor’s scheme, but manufacturers would be required to meet an overall emissions target across their average fleet.

Industry estimated this would add $9700 to the cost of Australia’s best-selling car, a Toyota RAV4, and up to $14,400 to the cost of a Ford Ranger, which is the most popular ute in the country.

The New Vehicle Efficiency Standard would add an estimated $14,400 to the cost of a new-model Ford Ranger ute.

The government has rejected claims this will force up the price of any vehicle, and argued motorists would save up to $1000 a year on fuel under the changes.

The Coalition will not scrap the standards entirely, keeping them to encourage manufacturers to import more efficient vehicles, however there would be no penalty for companies that did not do this.

Mr Dutton said Labor’s “tax” was an “unfair burden” in the middle of a cost of living crisis.

“This is a tax on families who need a reliable car and small businesses trying to grow,” he said.

“We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050, but forcing unfair penalties on car makers and consumers is not the answer.”

Coalition transport spokeswoman Bridget McKenzie said the Opposition supported cleaner and more fuel-efficient vehicles, but Labor’s “EV-only focus” ignored the reality that for many families this did not provide the utility in a car they want or need.

“Labor’s policy punishes Australian families and businesses who either don’t want or cannot afford to buy an EV,” she said.

“The fact that Labor’s tax penalises hybrids is proof Labor has got this policy wrong.

“By making petrol and diesel SUVs and utes more expensive, Labor will force families to keep older, less efficient and less safe vehicles on the road for longer.”

Liberal Senator Bridget McKenzie claims Labor’s fuel efficiency standards would penalise owners of hybrid vehicles. Picture: NewsWire/ Richard Gosling

Coalition climate change and energy spokesman Ted O’Brien said the party would remove the financial penalties for manufacturers, but retain a vehicle efficiency standard to “keep pressure on auto manufacturers to develop and supply more fuel efficient and less polluting vehicles”.

“The Coalition backs lower emitting vehicles because more fuel-efficient cars save Aussies money every time they fill up – but we won’t back Labor’s car tax that drives prices through the roof,” he said.

“Labor has got the balance wrong by imposing penalties that will be passed on to Australian families and small businesses.”

Originally published as Car maker emissions penalties to be dumped under Coalition pledge to reform New Vehicle Efficiency Standard