New Labor government to reduce taxes on EVs, but car industry wants broader view to cut emissions
Australia’s car companies have wasted no time in pushing for significant change to reduce vehicle emissions under the new Albanese federal government, calling for mandatory CO2 targets – potentially with strict penalties for brands that don’t comply.
There was no definitive action from Canberra on this front under the former Morrison government, leaving the local car industry to introduce its own voluntary CO2 standard in 2020 for all new cars, SUVs and light commercial vehicles, including the top-selling utes.
But with the change to a Labor government, which prior to last weekend’s election pledged to eliminate import tariffs on electric vehicles priced below $77,565 (the current luxury car tax threshold for ‘green’ vehicles), the Federal Chamber of Automotive Industries (FCAI) said now was “the perfect time” to introduce mandatory CO2 targets.
“The Australian public has made it clear that tackling climate change and reducing emissions is a primary concern,” said FCAI chief executive Tony Weber.
“As an industry we are ready to work with the new federal government to transition industry’s voluntary CO2 scheme to a federally mandated one.”
The car industry hasn’t detailed the extent to which it would support financial penalties for those brands that don’t meet their targets or whether the current targets in place – below 100g/km of CO2 by 2030 for passenger cars and SUVs, and 145g/km for light commercial vehicles and heavy-duty SUVs – would be toughed up.
But it’s unlikely to support any moves that emulate other markets such as Europe, which is effectively a decade ahead of Australia – already at 95g/km for passenger cars and SUVs and 147g/km for LCVs.
The latest figures show that over the 12 months to March 2022, CO2 emissions in Australia for cars and SUVs averaged 146.5g/km, while heavy SUVs and LCVs were at 212.5g/km.
Weber said any government-mandated scheme must be “technology agnostic, realistic, and allow automotive manufacturers to bring efficient, low-emission technologies to Australia across a broad range of engine options”.
“Our members are bringing low-emission technologies to market that encompass internal combustion, hydrogen, hybrid and full battery-electric systems,” he said.
“All of these technologies will play a role in our short-medium term journey towards zero emissions and full electrification.
“Our message to government is simple. Give us the target; we will give you the technology,” he said.
