Tariffs move by Labor to save car buyers thousands

Motorists could save up to $12,000 on a $70,000 Tesla Model 3 under Labor’s transport policy that removes import tariffs and the fringe benefits tax from low emissions models.

A Tesla Model 3.

Motorists could save up to $12,000 on a $70,000 Tesla Model 3 under Labor’s transport policy that removes import tariffs and the fringe benefits tax from low emissions models that fall below the luxury car tax threshold.

RepuTex modelling of Labor’s “electric car discount” suggests the policy could result in savings of $8700 on a $50,000 Nissan Leaf and $10,600 on a $60,000 Hyundai Kona.

Labor has pledged a low-emissions vehicle target for the commonwealth fleet of 75 per cent of new purchases and leases of passenger vehicles by 2025.

“Carmakers are acting,” he said. “I drove a hydrogen fuel-cell Hyundai around Parliament House for laps during the week. If you change the price … you really provide a significant incentive.

“Businesses across the board are doing that. State governments are doing it, the federal government is doing it. And guess what? We will still have a weekend.”  Labor will also introduce a “real world” vehicle testing program to ensure new cars do not use more fuel than advertised, ­deliver customers better choice and help save them money at the bowser.

The Australian Automobile Association – which would ­administer the scheme – said the introduction of a “‘real world’ emissions test would be a huge win for Australian families” and “the logical first step in any long-term approach to reduce emissions from Australia’s transport sector”.

AAA managing director ­Michael Bradley said a 2017 pilot study used the EU’s real world emissions methodology to test 30 popular Australian cars and found they used up to 59 per cent more fuel than advertised.

“Australians desire a clean ­environment, but with petrol prices hitting $2 per litre, and the ­average Australian city household now paying more than $20,000 on annual transport costs, voters also want policies that reduce cost-of-living pressures,” he said.