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AN automotive agreement on Australia’s EV future struck this week by industry associations outlines more than 25 principles including mandating CO2 targets and ensuring laws and targets are ideally led by the federal government.

The agreement, involving the main national, state and territory automotive representative organisations – including the FCAI, MTAA, AAAA, AAA and VACC – outlines critical positions and pathways needed to achieve a practical transition and electrification of the national motor vehicle fleet.

Organisations involved represent thousands of businesses that make, sell, distribute, provide novated leasing, service, repair, supply aftermarket parts, components, and accessories, dismantle, recycle, and train tens of thousands of automotive professionals.


The 25 principles include:

  • Embracing the electrification of the Australian motor vehicle fleet.
  • Mandating CO2 targets, not electric vehicles (EV) targets.
  • Supporting the federal government in developing a national zero and low emission vehicle (ZLEV) electrification transition strategy.
  • Considering the entire registered vehicle fleet and the needs and requirements of Australians who own and operate them.
  • Maintaining the safety, security, service, repair, and efficiency of the legacy internal combustion engine (ICE) fleet.
  • Opposing the introduction of bans that limit consumer choice and remove options for meeting car owners’ needs and Australia’s emission reduction targets.
  • Ensuring government targets and milestones are ideally federally led (or at least nationally consistent), are realistic, supported by facts and sound qualitative data, and applied to an Australian context.

In a statement, the organisations said that they welcomed and congratulated the Albanese Labor government for its decisive action in fulfilling its fringe benefits tax exemption for EVs promise. 

The legislation was in the first batch of 13 bills introduced to the parliament and will encourage the uptake of EVs once passed.

Automotive organisation leaders shared and discussed comprehensive global and domestic data analysis on the future production and delivery of ZLEVs past 2030 (particularly to the Australian market); impacts and use of targets, milestones, incentives, subsidies, and penalties; jobs and skills; tariffs and taxation; fuel standards and security; legacy fleet management and maintenance; and awareness and education.

The organisations said that in the coming weeks, they will engage with stakeholders, governments and communities to share critical data and information to better balance discussion and partner with the federal government to plan the actions necessary to reduce motor vehicle-sourced CO2 and GHG emissions.

By Neil Dowling

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