Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is for the Minister representing the Minister for Climate Change and Energy, Senator Gallagher. Labor's family car tax could increase the cost of SUVs and utes by up to $25,000, including $11,000 on the RAV4 and nearly $20,000 on a Ford Ranger, according to modelling by the Federal Chamber of Automotive Industries. Your government claims that its car tax is modelled on the United States', but the US corporate average fuel efficiency standard is based on actual fuel efficiency—gallons per mile—not a carbon tax and trading scheme like Labor has proposed. Why is the government claiming it has a fuel efficiency standard when it is really just another form of carbon tax introduced in the middle of a cost-of-living crisis which will hurt the voters of Dunkley and everyday Australians.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

As I said yesterday, the National Party smell a scare campaign and they can't wait to get on top of it. They race towards it: 'Here we go, here's something where we can drive a bit of fear and disunity and create myths across the community.' They love it. They love nothing more, especially if it's linked to climate change in some way. That really gets them out of bed in the morning, doesn't it? 'How can we take Australia back to when we were in government?', back to when there was no change, back to when there were 22 energy policies and you didn't land one of them when ministers lost their jobs if they even look sideways at doing anything supportive on climate. As we know, this has meant we are years behind on the energy transition—years behind trying to seize the jobs and the growth that will come from the renewable energy transition.

On the new vehicle efficiency standard, the government is consulting on a model. That's what we're doing. We are getting feedback on that. There are options in the consultation document. The minister is talking directly with industry manufacturers and with the Australian CEO's, and we thank them for their engagement. That process will continue until 4 March, as I understand it, and then the government will consider those consultations. But 85 per cent of the global car market is covered by fuel efficiency standards. We know that Josh Frydenberg said, 'We've always been committed to getting fuel efficiency standards in place,' and we saw what happened to him. We also know the member for Bradfield was all for them for a period—probably before being told that he wouldn't have a future— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Canavan, first supplementary?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, if the Albanese Labor government is so certain that your car tax will not lead to higher car prices and drive up the cost of living for Australians, why is the government preventing the Senate from seeing the government's calculations and hiding behind a public interest immunity claim? Why won't you honour the Prime Minister's promise of greater transparency and release the modelling?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

There is no evidence to suggest that the new vehicle efficiency standard will increase vehicle prices. In jurisdictions that have had that standard in place for some time, sometimes for up to 50 years—and I know the National Party like to go back in time, but it's like they want to go back beyond 50 years—real-world evidence has not shown an increase in price for consumers. What we are trying to do here is make sure that we have more fuel-efficient vehicles—tick!—make sure there's choice for consumers—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

and make sure the costs of operating a car are lowered.

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. I'm going to wait for silence, Senator Canavan, and then I'll come to you. Senator Canavan.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Thank you, Madam President. A point of order on relevance: this question was specifically about releasing the modelling, which is subject to an order for the production of documents from this chamber. I'd just ask that the minister be brought to the question about why they're refusing and ignoring that order for the production of documents.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Canavan. Your question also went to driving up costs. That was the opening statement to your question. I believe the minister is being relevant and I will continue to listen.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We have released an impact statement, 80 pages, which I'm sure you've pored over. I would go back to what Mr Fletcher said: 'There wasn't a material change in price and we don't expect that there would be a material change in price here.' I would remind those opposite that when they were in government—before you nobbled it, probably at a National Party meeting—they proposed much tighter targets for 2025 than under our proposal. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Canavan, second supplementary?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, this morning you were asked on ABC radio whether you accepted that people are concerned about Labor's new family car tax and that it's a live issue in the electorate that people are concerned that their car prices will increase. You said, 'I accept that.' Why is the government so determined to introduce a family car tax on SUVs, four-wheel drives and utes that is so extreme that most hybrid cars will also be subject to Labor's family car tax and it will drive up the cost of living for all Australians?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I wasn't asked that question—it has a Canavan flourish to it—but, Senator Canavan, you are raising a concern. You are raising a concern, so my answer to that was correct: I accept that there are people, including all of the National Party, I presume, who have concerns about this. But then I went on to say that this is about driving choice, getting more fuel efficiency. Involve yourself in the consultation program. You can't just go around killing every proposal because you think it might be positive for the climate, which is the approach that you have taken.

This is a sensible reform. We are consulting on it. Those consultations will close on the fourth. We know that Mr Fletcher, Senator Sharma and Mr Frydenberg all supported this, with tighter targets than the ones that are being proposed in the consultation document. We look forward to that being completed.

I ask that all further questions be placed on the Notice Paper.