Photo caption: Federal Member for Parkes Mark Coulton met with Tait Auto Group General Manager Kendall Tait to discuss Labor’s proposed new Vehicle Efficiency Standard.
The price of Australians’ favourite SUVs, utes and 4WDs will be jacked up by thousands of dollars under Labor’s proposed carbon tax on vehicles.
Under the proposed new Vehicle Efficiency Standard, Labor will place penalties on new petrol and diesel vehicles over a certain emissions limit to subsidise electric vehicles and make them relatively more affordable.
Industry analysis of the proposed new standard predicts the cost of some popular models such as the Toyota LandCruiser could rise by as much as $25,000.
Federal Member for Parkes Mark Coulton said Labor’s newest tax will put too many cars out of reach of the average family budgets in the Parkes electorate.
“During a cost-of-living crisis, the last thing people want to hear is that the Labor Government is going to increase the cost of our favourite family cars and utes with a great big tax,” Mr Coulton said.
“I’m not opposed to electric vehicles, but to subsidise EV sales by taxing people who use other vehicles is yet another attack on regional Australians, particularly the working class, young families, tradies and farmers.
“For these people, SUVs, utes and 4WDs are not a luxury. The Prados, the Rangers, the HiLuxes, the LandCruisers and the D-Maxes are the workhorses that rural and regional Australians need and rely on to go about their daily lives.
“In fact, as I drive around my electorate, it’s these cars that fill the main streets of every town.
“Frustratingly, it’s those of us in the bush who will be forced to pay thousands of dollars more for these reliable family cars in order to subsidise the electric vehicles of city-dwellers under Labor’s car tax.
“It will reduce the choice of vehicles available to people in the Parkes electorate, force up the price of Australia’s top-selling cars and put local jobs at risk as manufacturers threaten to pull out of the market.”
Australia’s top three best-selling vehicles in 2023 face a carbon penalty of up to $17,950 for the Ford Ranger, $14,490 for the Toyota HiLux and $13,830 for the Isuzu D-Max respectively by 2029 under Labor’s proposed tax.
In New South Wales, there are more than 1,000 new car dealers which employ more than 18,900 people and contribute $5.6 billion to the economy. Labor’s family car and ute tax will threaten these jobs, including dozens in the Parkes electorate.
Mr Coulton has been contacted by some of the biggest dealerships in the Parkes electorate that are concerned the proposed standard goes too far too fast which will have significant impacts on their businesses, staff, customers and the local communities they service.
Tait Auto Group employs 125 people across dealerships in Moree and south west Queensland.
General Manager Kendall Tait said she believes the proposed vehicle efficiency targets fail to adequately consider the unique circumstances of rural, regional, and remote communities, including their budgets and safety needs.
“Our community travels vast distances daily that require vehicles with specific technical and towing capacity as well as safety features,” Ms Tait said.
“Moreover, affordability is crucial, as families and businesses are already struggling with existing economic pressures. Our most popular vehicles are the Toyota HiLux and Toyota LandCruiser utes and wagons, however the proposed additional costs of $14,000 to $25,000 per vehicle would burden families even further.
“One of the best ways of improving vehicle efficiency is to sell more new cars that offer the latest in efficiency improvements and safety features. At this time, without further incentives for people to upgrade their vehicle, we can only see that consumers will be reluctant to purchase a new vehicle if the vehicles our community preferences increase in price as a consequence of this new standard.
“Franchised new car dealers want to connect their communities with the best available options to suit their needs, but without a measured and sensible approach to such a significant change in the automotive space, local businesses such as ours and our community we service will suffer.”
Shadow Minister for Transport Senator Bridget McKenzie said Labor is ignoring reality by hanging on to its claim that the policy will result in lower running costs for new car.
“In New Zealand, we saw a similar tax drive up the cost of a car by about NZ$7,000. A punitive tax is not the right way to push people towards EVs that are still not affordable or practical for many Australians,” Senator McKenzie said.
“A cleaner and more efficient transport fleet is an important part of reducing emissions, but by Labor making new cars more expensive to buy, many Australians will keep their current car for longer, or choose a second-hand car, resulting in an older and less efficient national fleet.”
Shadow Minister for Climate Change and Energy, Ted O’Brien said Labor’s family car tax would punish everyday Australians for choosing to drive the cars they need and love.
“Australians are already suffering under Labor’s cost of living crisis and cannot handle yet another hit to the hip pocket, from this detached and reckless Labor Government,” Mr O’Brien said.
“The Coalition is willing to engage on emissions reduction measures but we do not support policies that fail to strike a balance between getting emissions down, minimising costs and maximising choice for all Australians.”
Learn more at: https://www.familycar.tax/