THE Coalition has promised that, if elected, monetary penalties for OEMs failing to meet the emissions standards under the NVES will no longer be required.

The Coalition claims that the NVES will place a cost imposition on car buyers of $2.7 billion by 2029 at a time when families and small to medium businesses are doing it tough.

The policy is very likely to appeal to the 2.5 million small businesses in Australia and to a large chunk of the buyers of the million or so vehicles that are to be purchased each year between now and the end of 2029.In effect, the Coalition is moving the scheme from compulsory with fiscal penalties, as it is under Labor, to a voluntary scheme with no teeth but one which continues to monitor OEM performance under the NVES standards in order to generate green bragging rights for car buyers much like the publication of ANCAP crash safety results.

Of course the Coalition has to win the election if such a scheme were to come to pass and then succeed in herding the cats of various political colours in parliament house into voting for the measure.

Leader of the Opposition Peter Dutton, Shadow Minister for Infrastructure, Transport and Regional Bridget McKenzie, the Shadow Minister for Climate Change and Energy and Shadow Minister for Energy Affordability Ted O’Brien, in a joint statement last week said they would if elected to government, “abolish Labor’s unfair tax on family cars and utes, cutting costs for families”.

Hon Peter Dutton MP

The statement read: “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.

Mr Dutton 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 said.

Senator the Hon Bridget McKenzie

Ms 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.

“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,” Senator McKenzie said.

Ted O’Brien MP

Mr O’Brien said that 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.”

The Electric Vehicle Council said in a statement that “weakening the New Vehicle Efficiency Standard (NVES) will stop Australians from saving thousands of dollars per year by driving an EV or a fuel-efficient petrol or hybrid car, and help petrol companies make even more profits”.

“Without penalties, automakers won’t have a reason to bring the most modern and fuel-efficient vehicles to Australia. This means fewer affordable EVs and fuel-efficient petrol and hybrid cars, leading to less competition, and making the cost-of-living worse for millions of Australians.

Electric Vehicle Council CEO Julie Delvecchio said that in a cost-of-living election, removing penalties from NVES will prevent Australians from saving money at the bowser by driving EVs and more fuel-efficient petrol and hybrid cars.

Electric Vehicle Council CEO Julie Delvecchio

“The NVES doesn’t work without the credit and penalty system. Removing fines from the NVES is like having road rules without enforcement—no consequences for breaking the rules and no motivation to follow them,” Ms Delvecchio said.

“The New Vehicle Efficiency Standard is good for millions of Australians – especially for those living in the outer suburbs and regions. From petrol and diesel cars through to EVs, the NVES means lower costs at the servo, more choice and competition in cheaper-to-run vehicles, and cleaner air in our suburbs.

“Australians are voting with their feet by getting into more fuel-efficient cars which save them money, especially EVs which slash costs for Australians by up to $3,000 every year.

“All Australians benefit from the NVES, but the ones who benefit most are those living in the outer suburbs who commute longer distances and are looking to save money.

“The NVES has only just started – we cannot afford to do a U-turn on this crucial policy that is set to save Australians $114 billion in fuel and maintenance savings and health benefits.

“Scrapping fines takes us back to the bad old days we left firmly in the rear-view mirror where Australia, alongside Russia, was a dumping ground for the world’s unwanted, fuel-guzzling, inefficient cars.

“Weakening the NVES will hurt millions of motorists while benefiting petrol companies as well as some manufacturers who want to continue selling costly cars that are bad for our health and our wallets.”