An elected Dutton Government will repeal Labor's tax on family cars and utes, ensuring Australians save thousands when buying a new car.
From July 1 under Labor's family car and ute tax families and small businesses will be slugged with thousands in extra costs when buying a new car, with industry estimates showing up to $9,700 added to the cost of a Toyota RAV4 - Australia's best-selling car - and up to $14,400 added to the cost of a Ford Ranger - Australia's best-selling ute.
Industry modelling predicts Labor's policy will cost $2.7 billion by 2029, a cost that will be passed on directly to consumers.
Leader of the Opposition, the Hon Peter Dutton MP, said Labor's tax is yet another unfair burden in the middle of the Albanese Government's cost-of-living crisis.
"This is a tax on families who need a reliable car and small businesses trying to grow. Instead of making life easier, Labor is making it harder and more expensive," Mr Dutton said.
"A Coalition Government will scrap this tax, so Australians can keep more of their hard-earned money when purchasing a new car."
"We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050, but forcing unfair penalties on car makers and consumers is not the answer," Mr Dutton added.
Shadow Minister for Infrastructure, Transport, and Regional Development, Bridget McKenzie, said the Coalition supports cleaner and more fuel-efficient vehicles, but Labor's EV-only focus ignores the reality that for many families EVs do not provide the utility in a car they want or need.
"Labor's policy punishes Australian families and businesses who either don't want or cannot afford to buy an EV. The fact that Labor's tax penalises hybrids is proof Labor has got this policy wrong.
"By making petrol and diesel SUVs and utes more expensive, Labor will force families to keep older, less efficient and less safe vehicles on the road for longer," Senator McKenzie said.
"A Coalition Government will work with industry, not against them, to bring to market the cleanest, most fuel-efficient models of the cars Australians need and want to drive-without punishing consumers with unfair costs."
Shadow Minister for Climate Change and Energy, Ted O'Brien said while abolishing Labor's tax, the Coalition will retain a vehicle efficiency standard to keep pressure on auto manufacturers to develop and supply more fuel efficient and less polluting vehicles.
"The Coalition backs lower emitting vehicles because more fuel-efficient cars save Aussies money every time they fill up - but we won't back Labor's car tax that drives prices through the roof," Mr O'Brien said.
"Labor has got the balance wrong by imposing penalties that will be passed on to Australian families and small businesses."
Together with our policy to halve the petrol excise for 12 months, saving motorists 25 cents per litre, abolishing Labor's tax on family cars and utes is part of the Coalition's plan to reduce the cost of living and strengthen the national economy.
