A NET-zero emissions future must have as its foundation an efficient mix of technology, taxation and infrastructure development, says the Federal Chamber of Automotive Industries in its submission to the government’s roadmap.

The FCAI’s chief executive Tony Weber said that the recommendations to the federal government’s ‘Transport and Infrastructure Net Zero Consultation Roadmap’ were aimed at looking beyond just electrification.

He said the future policy must include features such as low-carbon liquid fuels, implementation of an equitable road-user charge, ongoing development and expansion of recharging infrastructure and elimination of inefficient taxes such as the luxury-car tax (LCT). “The introduction of the New Vehicle Efficiency Standard (NEVS) provides industry with certainty regarding the expectations and ambitious targets of the government,” Mr Weber said.

“However, this is not a ‘set and forget’ direction. There is a need to continue to focus on the broader enabling environment, and how we can reduce emissions in the existing fleet while the transition occurs. 

“Policy that drives the supply of vehicles will struggle unless consumers become a part of the solution to achieve net zero emissions through effective and efficient levels of support and encouragement.” 

Mr Weber said progressive taxation reform would be an integral part of the journey to net zero. 

“Scrapping the LCT, which is a tax on new vehicle technology, and extending the Fringe-Benefits Tax exemption for plug-in hybrid (PHEV) could support EV adoption and are important measures to consider,” he said. 

“An efficient and equitable road-user charging framework can be considered as a replacement for a range of outdated and inefficient tax measures, while maintaining sustainable funding for roads and transport infrastructure into the future.” 

The FCAI said development of public and private electric vehicle recharging infrastructure remains a major priority for consumers.

“Governments understand the importance of the development and performance management of recharging infrastructure and significant investments are being made,” Mr Weber said. 

“This is a good start but more needs to be done. 

“There are big challenges ahead, particularly the roll out of infrastructure to regional and rural Australia. 

“This is a complex piece of work that must be done in parallel with the capability and capacity of the electricity distribution network.”

Tony Weber

The FCAI said that although electrification was seen as the most obvious method of reducing vehicle emissions, it said that all relevant technologies must be considered as offering solutions to both new and existing vehicles in the Australian fleet. 

“Australia is a nation with more than 21 million registered vehicles which will take time to transition,” Mr Weber said.

“It may be possible to leverage low-carbon liquid fuel solutions across the transport sector, and we should be considering policy outcomes that encourage production and supply opportunities. 

“The key message is that multiple pathways will be required during the next decade and beyond to achieve the net zero emissions objectives of governments and industry. 

“With this in mind, FCAI and its members will continue to engage constructively with all levels of government and industry partners to achieve a low emissions future while providing the best outcomes for Australian consumers.”