Government revisits plan to impose penalties on car emissions

An ambitious plan to put more electric cars on Australian roads has been floated by the Albanese government, including the return of a controversial strategy.

Climate Change and Energy Minister Chris Bowen has announced an ambitious plan to increase electric vehicle sales and suggests carbon penalties are back on the table ahead of a national EV summit on Friday.

Mr Bowen suggested that if these standards had been phased in from 2020, they could have already saved motorists up to $1.65bn in fuel costs, according to Department of Infrastructure analysis.

The plan is to impose carbon emission penalties on new car sales to boost electric-vehicle take-up and address the rising costs of running traditional combustion engines.

“We believe that now is the time to have a sensible discussion about whether fuel efficiency standards could help improve the supply of electric vehicles into our market,” Bowen said.

Australia is the only OECD country, aside from Russia, that is not in the process of developing fuel efficiency standards.

Climate Change and Energy Minister Chris Bowen says a carbon penalty plan is being brought forward. Picture: NCA NewsWire / Gary Ramage

The minister suggested that a lack of these standards was impacting supply in Australia, as EV manufacturers prioritised markets that had them in place.

The federal government has reached out to state and territory ministers to invite their participation in the development of the strategy.

Australians can choose from just eight models of electric vehicle – less than a third of the options available in the UK.

Labor will release a discussion paper on the national strategy for expanding the range of new EV models available in Australia that cost less than $60,000.

Australian uptake of new low-emissions cars is five times lower than the global average.

The Australian Electric Vehicle Association estimated consumers could save an average of $500 in fuel and $100 in maintenance costs each year with an electric car.

Australian uptake of EVs is five times lower than the global average. Picture: NCA NewsWire / Jeremy Piper

“Giving Australians better access to options which allow them to never lift the nozzle on a petrol pump again is a good cost of living measure,” Mr Bowen said.

“There are many consumers who would be interested in buying an EV – but even if they could access the limited stock available, price sends them to petrol or diesel models.”

So far, the government has removed the 5 per cent import tariff and the fringe benefits tax for eligible electric vehicles.

The latter could save someone buying a $50,000 EV car up to $4700 a year in a salary sacrifice arrangement and up to $9000 a year for employers.

Mr Bowen poked at the Morrison government’s lack of action on an EV strategy, saying it “didn’t welcome sensible policies”.

The government is aiming to have a charging station every 150km on major roads. Picture: NCA NewsWire / Jeremy Piper

“We run a real risk of becoming a dumping ground for cars that are expensive to run and at the back of the global pack,” he said.

“Australia now has a government that gets it.”

The Driving the Nation plan aims to establish a national network of charging stations at an average interval of every 150km on major roads.

The government is working towards transitioning 75 per cent of new commonwealth vehicles to electric by 2025.

A national battery strategy is being prepared with plans to establish a battery manufacturing precinct in Queensland.

Originally published as Government revisits plan to impose penalties on car emissions