Coalition will scrap Labor’s electric vehicle tax break if elected in major election promise backflip
Opposition leader Peter Dutton has pledged to scrap a tax break for electric vehicle drivers in an effort to crack down on “wasteful spending” — just two days after pledging to keep it.
Federal Election
Don't miss out on the headlines from Federal Election. Followed categories will be added to My News.
The Coalition will scrap Labor’s popular tax break for electric vehicle drivers, announcing the backflip just two days after Peter Dutton pledged to keep the scheme despite its cost blowout.
As the Opposition leader comes under pressure to detail how he will pay for election commitments, including a $21bn increase in defence spending, the Coalition released a quiet statement confirming it would scrap the EV tax break on Wednesday as part of a crackdown on “wasteful spending”.
Labor introduced the electric vehicle tax break in 2022, scrapping fringe benefit tax for people who buy an electric vehicle for under $91,387 on a novated lease — a leasing arrangement between an employee, employer and finance company.
On Monday when asked if he would cut the fringe benefit tax exemption, Mr Dutton had said “no”.
The tax break had a far greater take up than Treasury initially forecast, with the Coalition claiming cutting it would save $3bn over four years.
Mr Dutton unveiled plans to produce a new defence strategy if elected on May 3, which he said would result in a big investment in drones and guided weapons.
He also flagged the nation’s cyber defences would receive a boost.
“All of that becomes a reality again,” he said.
But pushed as to whether voters had a right to know exactly where money was being spent, Mr Dutton said: “I don’t think there’s a country, there’s a government in our history, that’s been elected outlining what contracts they’ll sign in relation to defence.”
During the campaign stop in Perth, his opposition defence spokesman, Andrew Hastie, was peppered with questions over comments he made in 2018 that close combat roles should be held exclusively by men.
Mr Hastie, who ultimately cut questions short during a tense press conference, stood by his previous comments, saying he was speaking from “personal experience”.
“I think about some of the things I had to do in a closed combat unit at Bindoon … You are firing live rounds. I remember picking up an 85kg mate and I did that with men under fire in combat for a fallen mate,” he said.
“I am not going to resile from what I have said in the past. I said what I said but the thing that the Australian people need to know, under a Dutton-led Coalition government, we will have a policy that is open to all Australians for combat roles. Nothing is changing.”
Meanwhile, Mr Dutton remained coy about how he planned to fund the uplift in defence spending from 2.5 per cent of GDP by 2030, and to 3 per cent within 10 years.
He said part of that funding would be achieved by slashing Labor’s tax cuts.
Mr Dutton defended his decision to announce key election policies so late in the campaign, as more than half a million Australians voted on day one of pre-polling.
He said it would be reckless to announce policies before knowing whether the budget could afford it.
Originally published as Coalition will scrap Labor’s electric vehicle tax break if elected in major election promise backflip
‘Nothing could prepare me’: On the road with Peter Dutton
This is what you don't see on the TV. Mikaela Mulveney spent three days on the federal election campaign trail with Opposition Leader Peter Dutton, and this is what she saw.
Nazi images, stolen and defaced signs reveal desperate, dirty battles
Even before the election was called, people were caught on camera tearing down the signs of opponents. We look at some of the dirty games being played.