Opposition Leader Peter Dutton has vowed that a Coalition government would repeal the penalties associated with Labor’s New Vehicle Efficiency Standard (NVES), labeling them as a “car and ute tax” that unfairly burdens Australian families and small businesses.
The NVES, implemented by the Albanese government on January 1, 2025, aims to reduce vehicle emissions by setting average CO₂ targets for manufacturers, with penalties for non-compliance. Critics argue that these penalties could increase the cost of popular vehicles, such as the Toyota RAV4 and Ford Ranger, by thousands of dollars.
“This is a tax on families who need a reliable car and small businesses trying to grow,” Mr. Dutton stated.
“Instead of making life easier, Labor is making it harder and more expensive.”
Under the Coalition’s plan, while the emissions standards would remain, the associated penalties for manufacturers exceeding targets would be abolished. This approach, according to the Coalition, would prevent price hikes on popular vehicles and provide relief to consumers amid ongoing cost-of-living challenges.
Shadow Minister for Infrastructure, Transport, and Regional Development, Bridget McKenzie, emphasised that the Coalition supports cleaner and more fuel-efficient vehicles but believes Labor’s policy is too narrow in its focus on electric vehicles (EVs).
“Labor’s policy punishes Australian families and businesses who either don’t want or cannot afford to buy an EV,”
she said.
The Coalition’s proposal has drawn criticism from environmental groups and industry experts. The Climate Council warned that removing penalties could lead to Australia becoming a dumping ground for high-emission vehicles, undermining efforts to reduce pollution and combat climate change.
Prime Minister Anthony Albanese defended the NVES, stating that the policy has “strong support” from the automotive industry and aligns Australia with international standards.
“We worked with industry, with major car makers, here, to land an arrangement that has strong support,”
PM Albanese said.
As the election approaches, the debate over vehicle emissions standards and their impact on consumers remains a contentious issue, highlighting the broader challenges of balancing environmental objectives with economic realities.
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