The Albanese Labor Government’s proposed family car and ute tax has been methodically demolished in just eleven pages by the nation’s peak association representing car drivers and consumers, the Australian Automobile Association.
Shadow Minister for Infrastructure, Transport and Regional Development, Senator Bridget McKenzie said Labor’s half-truths and deliberate omissions on their proposed carbon tax on SUVs and utes has been exposed by the highly regarded Australian Automobile Association.
“Not only the nation’s car dealers and car makers of Australia’s most popular vehicles have been calling for changes to Labor’s plans to increase the cost of SUVs and utes, but now the representatives of Australia’s car owners have also called out the “significant impacts on consumers” the flawed scheme will have,” Senator McKenzie said.
“The AAA has stripped bare Labor’s false claim that the price of new cars will not increase as a result of their family car and ute tax.
“The Government needs to release the modelling that underpins their assurances to Australian motorists that the cost of Australia’s most popular cars and utes will not increase under its plan.”
Centre for International Economics (CIE) modelling commissioned by the AAA shows the extreme increases in the cost of petrol and diesel vehicles needed to change consumer behaviour in order to achieve Labor’s carbon emissions targets:
“The CIE’s modelling suggests that prices of electric vehicles will need to be reduced to incentivise more buyers to purchase them, whereas ICE vehicles will need to be disincentivised through increased prices.” (Source: AAA submission, 13 March 2024, page 8)
Due to Australian families and tradies favouring driving range as well as carrying and towing capacity, the CIE modelling shows the price of petrol and diesel SUVs would need to increase by $33,900 (72.3%) and utes by $107,600 (214%) by 2029, and the price of EVs reduced substantially to achieve Labor’s carbon emissions targets.
“This adds to the modelling of the Federal Chamber of Automotive Industries that Labor’s proposed ute tax would increase the cost of the Ford Ranger by up to $17,950 and Toyota Hi-lux by up to $14,490,” Senator McKenzie said.
Senator McKenzie said despite supporting an appropriate fuel efficiency standard for Australia, the AAA’s commissioned research has exposed misleading Government claims about impacts on regional communities, increases to the cost of vehicles, poor international comparisons and lack of evidence about how Labor’s targets could be achieved.
“The Opposition is committed to working with car manufacturers to bring cleaner, more efficient vehicles to Australia with the latest technology with the range of choices and affordability needed by families and small businesses,” Senator McKenzie said.
“We will oppose Labor’s extreme family car and ute tax that stakeholder warn will increase the cost of buying new cars and delay uptake of cleaner vehicles by forcing many consumers to hold onto their existing cars for longer.”
CIE modelling: Prices required to achieve targets under different emissions standards – 2029
| Vehicle category | Base Case | Option B | Change | |
| Passenger | Petrol / Diesel | $33,700 | $58,600 | + $24,900 |
| EV | $33,700 | $27,900 | – $5,800 | |
| SUV | Petrol / Diesel | $46,900 | $80,800 | + $33,900 |
| EV | $46,900 | $33,600 | – $13,300 | |
| Light Commercial | Petrol / Diesel | $50,200 | $157,800 | + $107,600 |
| Vehicles | EV | $50,200 | $15,500 | – $34,700 |
(Source: Australian Automobile Association submission, page 8)