Media Releases

Reports that Treasurer Jim Chalmers has commissioned modelling on a national electric vehicle tax reveal the Albanese Government’s transport emissions policy is a mess - sending mixed messages, with no clear vision or credible long-term commitment.

 

At a time when Australia should be accelerating the uptake of electric vehicles to reduce emissions and lower household transport costs, considering new EV taxes sends a confused signal and undermines progress.

 

Global fuel supplies are uncertain and global oil markets remain volatile. It is counterproductive to make it harder for Australians to shift away from petrol dependence.

 

These concerns go to a broader issue of policy coherence. On the same day we hear the government is weighing up an electric vehicle tax, we also read reports of an Australia–European Union agreement to remove tariffs and reduce barriers on European-made electric vehicles.

 

The EU deal is welcome. But it highlights a huge contradiction: Australia is opening the door to cleaner vehicles from abroad while its domestic policies risk slowing the transition at home.

 

The Albanese government should be doing everything possible to encourage - not discourage - the transition to cleaner vehicles. As Australians reel from higher prices at the bowser, the shift becomes even more urgent.

 

The contradiction is further exposed by reports the government is considering winding back Fringe Benefits Tax exemptions for electric vehicles, with no mention of scrapping the exemption for large, fuel-sucking utes and vans.

 

What’s more, the Fuel Tax Credit remains in place for mining and heavy industry, badly distorting the fuel tax system. Does the government really intend to slap a new tax on EV drivers, while major emitters continue to have their dirty fuel use subsidised by taxpayers?

 

On transport emissions, the Albanese government is making a lot of noise but has no plan - just contradiction after contradiction.