19 February 2024
The cost of popular SUVs, utes and 4WDs will be forced up by thousands of dollars from next year to help the Albanese Government subsidise the price of individuals buying electric vehicles, according to car industry research released at the weekend.
Industry analysis of Energy Minister Chris Bowen’s proposed New Vehicle Efficiency Standard predicts the cost of some popular models such as the Toyota Landcruiser could rise as much as $25,000.
“During a cost-of-living crisis, the last thing people want to hear is that the price of a new family car or a new ute for a tradie is going to be forced up to subsidise EVs,” Senator McKenzie said.
“If you’re a tradie and you’re buying vehicles such as a BT-50 or a D-Max or a HiLux or a Ranger, the Albanese Government’s family car tax is going to drive up the cost of purchasing that vehicle.”
Australia’s top three best-selling vehicles in 2023 were utes, with each facing a carbon penalty of up to $17,950 for the Ford Ranger, $14,490 for the Toyota Hi-lux and $13,830 for the Isuzu D-Max respectively by 2029.
According to the analysis by the Federal Chamber of Automotive Industries many hybrid vehicles will exceed Labor’s carbon targets, and be forced to pay or offset penalties, including the popular Toyota RAV4 which will face up to $4,890 in penalties by 2029.
Senator McKenzie said the cars that the penalty would apply to are the most popular family cars seen during school pick-up and drop offs or at sporting events at the weekend.
“The proposed Vehicle Efficiency Standard is a direct hit on popular models that Australians love to drive,” Senator McKenzie said.
“Everyone wants to see cleaner, more efficient cars and utes as we do our bit toward reducing emissions by 2050, but the trajectory under Mr Bowen’s preferred plan will put so many cars out of reach of family budgets.”
Labor claims the new Vehicle Efficiency Standard will result in lower running costs for new cars – but not if families can’t afford to buy them.
“Families are already struggling under Labor’s cost of living crisis and the last thing they need is yet another expense on top of spiralling energy costs, increases to mortgages and skyrocketing grocery bills” said Shadow Minister for Climate Change and Energy Ted O’Brien.
“As for Chris Bowen claiming this tax is a cost-of-living measure, it’s yet another Labor lie.
“Slapping thousands of dollars on to the purchase price of the most popular family vehicles only makes life harder for middle Australia.
“Chris Bowen is the dodgiest car salesman in Australia. This is the same Minister who promised a $275 reduction in your power bills – which have now risen $1000 – and now he’s promising cheaper cars when the industry is forecasting price hikes of up to $25,000.
“A cleaner and more efficient transport fleet is an important part of reducing emissions, but Labor’s proposal fails to get the balance right between price, consumer choice and emissions – and it will be everyday Aussie families wearing the costs” Mr O’Brien said.
By making new cars more expensive to buy, Labor will force many families to keep their current car for longer, or choose a second-hand car, resulting in an older and less efficient national fleet.
Listen to Ted’s interview with Sky News (HERE), 2GB Radio (HERE) and Radio 5AA (HERE).
