Coalition Backflips on EVs, Silent on Big Ute Subsidies

Australia Institute

Australia Institute research shows that subsidies for luxury imported utes costs the Federal Budget $250 million per year.

Almost every large, dual-cab ute on the market is exempt from the luxury car tax because utes are "designed mainly for carrying goods and not passengers".

But everyone knows most of these vehicles rarely leave the bitumen of our suburbs and rarely carry anything more than the weekly shopping or children for the school drop-off.

"Big dumb utes make our roads more dangerous, cause more pollution and reduce the government's ability to fund social services," said Richard Denniss, Executive Director of The Australia Institute.

"Basic economics says to tax things you want less of and subsidise things you want more of, yet Peter Dutton seems to want less electric vehicles and more American-style utes on our roads.

"The Coalition says it's scrapping the EV tax break – which it supported up until Monday – because people who buy electric vehicles can afford them. Surely the same should apply for big utes."

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