28th March, 2019 ยท Media Release

Greens New Car Tax Plans Will Hurt
Tradespeople and Industry

The release of the Greens transport policy today reveals their plans for a new car tax and the abolition of new combustion engines by 2030.

“We support the Greens intention to reduce transport emissions, but the way to do that is to remove older vehicles from the roads, not increase the price of new vehicles, which are cleaner and more efficient,” said AADA CEO David Blackhall.

“The emissions intensity of new vehicles has reduced by 28 per cent over the past 15 years and this trend will only accelerate as more affordable electric vehicles and hybrids are increasingly sold,” he said.

“The industry does not need another luxury tax on vehicles. Car buyers already pay hundreds of millions each year to the federal government for a tax that falls on some of the safest and cleanest vehicles, including many electric vehicles.

“The proposal to ban new internal combustion engine vehicles by 2030 could do serious harm to tradespeople and the retail car industry,” he said.

“Australia’s two top selling vehicles are the Toyota Hilux and the Ford Ranger, both utes which are used to carry heavy loads and tow trailers significant distances. Currently, these vehicles can only perform to these standards with an internal combustion engine and it is uncertain whether an alternative powertrain will be available to satisfy their role in a decade,” he said.

“Regulations seeking to reduce vehicle emissions should avoid dramatic price increases and restriction of choice, as this may lead to reduced new car sales which will hurt industry and result in poor environmental outcomes,” he said.

“The focus should be on making greener vehicles more affordable and convenient not making new vehicles more expensive,” he said.

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