Leah Blyth (SA, Liberal Party, Shadow Assistant Minister for Stronger Families and Stronger Communities) Share this | Hansard source

You deserve to choose what car you buy, yet Labor is limiting your choice when it comes to buying a ute, SUV or four-wheel drive. Australians deserve to know the truth about Labor's ute tax. The New Vehicle Efficiency Standard Act 2024 introduced fleetwide emissions targets for new passenger and light commercial vehicles. The legislation does not ban petrol or diesel vehicles; however, it relies on penalties and credits that steer car manufacturers towards electric vehicles as the lowest risk compliance option.

Manufacturers respond to regulatory pressure. That means a reduction in the range and volume of higher emission vehicles offered in Australia. Everyday Australians rely on utes, four-wheel drives and SUVs, yet in the middle of a cost-of-living crisis, when families are choosing between air-conditioning their homes and purchasing groceries and when businesses are going bust, this Labor government is reaching into your driveway and your pocket, trying to dictate how you will spend your money and what car you can drive, regardless of need or vehicle requirements.

Funnily enough, the highest selling vehicle in Australia is a ute. Under Labor's vehicle efficiency standards, car manufacturers must meet ever-tightening average CO2 targets for their fleets or face hefty penalties. By 2029, allowable emissions per kilometre will halve, forcing car makers to drastically change their model mix. If a manufacturer exceeds the cap, they will be fined $100 for every gram of CO2 over the limit per vehicle sold. Companies that beat the target earn credits, and they can sell to those who do not by effectively subsidising electric vehicles at the expense of petrol, diesel and even hybrid models. The government insists this is not a tax because the fines are paid by the car makers, not the buyers. But car makers even admit that they will pass this cost on to consumers. The National Farmers' Federation has been blunt and said:

There is no point trying to tax us into choosing lower emissions vehicles when those alternatives don't exist.

Utes and four-wheel drives aren't a choice for farmers and tradies.

Industry modelling predicts that some of Australia's most popular models will surge in price. By 2029, Australians could be paying over 25 per cent more for the average ute. That means paying an extra $4,900 for a Toyota RAV4, $7,800 extra for a Toyota LandCruiser Prado and $14,400 extra for a Ford Ranger. This policy is estimated to take about $2.8 billion from farmers, from tradies and from families by 2029. Manufacturers are already pulling models out of our market. Ford has stopped selling the 4x2 Everest. Isuzu has dropped the 4x2 MU-X. The fines under Labor's new standard make these vehicles unviable in the Australian market.

Labor's policy is simple: you will pay more and have fewer options. Vehicles that symbolise the Australian way of life are in the crosshairs. LandCruisers, Patrols and Prados will not be spared. It reaches into rural Australia's heartland, and tradies, families and anyone who wants to tow a caravan and explore our great nation. Tradies who use a ute as a mobile workshop will pay up to $17,000 more. Farmers who need a robust four-wheel drive will face limited options and disappearing models. It's happening before Australians are ready. For many users, EVs are not yet viable. Farm and worksite vehicles need long-range, heavy towing capacity and durability in harsh conditions. Current electric utes and four-wheel drives cannot reliably meet those demands.

Australians deserve the right to choose—to choose what they buy and how they spend their money. The Labor government are more concerned with changing consumers' behaviour to meet their ideological targets. Let me be clear about what this means for Australians. It means families are paying nearly $13,000 more for a Mazda CX-5, it means tradies are paying nearly $17,000 more for an Amarok and it means farmers are paying $17,000 more for a HiLux.