‘Harder and more expensive’: Dutton’s price promise to Australian drivers

Peter Dutton has promised to axe one of Labor’s policies if elected, which he claims would reduce the cost of petrol-guzzling cars.

Peter Dutton has vowed to scrap Labor’s vehicle efficiency standards which they claim will increase the cost of fuel-guzzling vehicles like utes and 4WDs by a combined total of about $2.7bn by 2029.

While the Opposition Leader has taken several opportunities to criticise the New Vehicle Efficiency Standard (NVES), he confirmed the Coalition would be scrapping the measure on Thursday, arguing it unfairly penalises larger families and smaller businesses.

Peter Dutton has vowed to scrap Labor’s vehicle efficiency standards.. Picture Thomas Lisson / NewsWire

The vehicle efficiency standards came into effect from January 1, and while the policy doesn’t ban any cars from being sold on the market, it incentivises car markers to bring on-board vehicles which use less fuel per kilometre.

Vehicle manufacturer have also been given an average CO2 target for the vehicles they produce, which they must meet or beat.

The CO2 target get tougher each year which will require car companies to meet or beat the target by providing more choices for fuel-efficient, low or zero emissions vehicles.

The move has triggered criticism from Toyota, Mitsubishi and GWM, which have increased their prices.

The Coalition estimates the cost of a RAV4 could increase by $9700 by 2029, while the cost of a Ford Ranger, the most popular car in Australia, may jump by $14,400.

Toyota Australia vice president of sales, marketing and franchise operations, Sean Hanley, told Car Expert the timing of the NVES should be reconsidered.

“I’m not suggesting for one minute that NVES should be stopped … but what I would ask if I had time with the government or opposition, I would ask them to reconsider the timing,” he said.

The Coalition said the VNES would increase the cost of petrol-guzzling vehicles like a Ford Ranger and Toyota RAV4.

Mr Dutton said Labor’s vehicle emissions standard was a tax on “families who need a reliable car and small businesses trying to grow”.

While he said a Coalition government would continue to “head towards net zero by 2050,” as per the Paris Agreements,” he said “forcing unfair penalties on car makers and consumers is not the answer”.

“Instead of making life easier, Labor is making it harder and more expensive,” Mr Dutton said.

“A Coalition Government will scrap this tax, so Australians can keep more of their hard-earned money when purchasing a new car.”

The Coalition’s infrastructure spokesman Bridget McKenzie said the vehicle emissions standards “punishes Australian families and businesses who either don’t want or cannot afford to buy an EV”.

”The fact that Labor’s tax penalises hybrids is proof Labor has got this policy wrong,” she said.

“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.

“A Coalition government will work with industry, not against them, to bring to market the cleanest, most fuel-efficient models of the cars Australians need and want to drive — without punishing consumers with unfair costs.”

The Coalition’s energy spokesman Ted O’Brien said standards under the emission standards had the “balance wrong”.

“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,” Mr O’Brien said.

Coalition energy spokesman Ted O’Brien said Labor has the ‘balance wrong’ with its VNES. Picture Thomas Lisson / NewsWire

The Coalition promised axing the VNES would help reduce fuel costs. Picture: David Martinelli

In addition to scrapping the emissions standards, the Coalition has targeted motorists in its cost-of-living promises to voters.

Nearly two weeks into a five week campaign, Mr Dutton has heavily promoted the Coalition’s promise to halve the fuel excise for a year and effectively lower petrol prices by 25c a litre.

On average it’s set to save households about $750 per vehicle, per year.

The Coalition’s star policy has resulted in Mr Dutton doing a blitz of the nation’s petrol station, visiting six service stations in seven days.

Smart Energy Council chief executive John Grimes said scrapping the NVES would cause the fuel prices to increase further and create further pollution, comparing the policy to that of Russia and the US.

“Peter Dutton’s decision to axe fines for companies that fail to meet New Vehicle Efficiency Standards is the same as axing the fuel efficiency standards,” he said.

“Australians will be more than $1,000 worse off, burdened with more inefficient cars and more pollution.”

Mr Grimes said Mr Dutton’s stance to axe the NVES would align him with US President Donald Trump and Russian President Vladimir Putin.

“Australia, Russia and Donald Trump’s United States will be the only developed countries without fuel efficiency standards,” he said.

“Peter Dutton is standing with Donald Trump and Vladimir Putin in backing fuel inefficiency.

“Peter Dutton is absolutely right – this election is a sliding doors moment for Australia. One side of politics supports at least 82 per cent renewables by 2030 with cleaner, more efficient cars.

“The other side wants to cap renewables at 54 per cent by 2050 and lock in Australia’s position as the world’s dumping ground for dirty, costly cars.

“Slashing weekly petrol bills should be a highest order priority for any future Australian government,” he said.

Originally published as ‘Harder and more expensive’: Dutton’s price promise to Australian drivers