PM claims Coalition ‘doesn’t want people to have more fuel-efficient cars’ as critics say removal of fines from efficiency standards means no consequences for rule-breakersElection 2025 live updates: Australia federal election campaignPolls tracker; election guide; full federal election coverageAnywhere but Canberra; interactive electorates guideListen to the first episode of our new narrative podcast series: GinaGet our afternoon election email, free app or daily news podcastPeter Dutton’s promise to axe fines for car companies in breach of vehicle efficiency standards is a “nonsensical” position from an opposition whose main campaign pitch is to lower fuel costs, Anthony Albanese has said.In its latest appeal to outer suburban motorists, the Coalition has pledged to abolish the “car and ute tax” that some carmakers say will drive up the price of popular vehicles.Sign up for the Afternoon Update: Election 2025 email newsletter Continue reading…PM claims Coalition ‘doesn’t want people to have more fuel-efficient cars’ as critics say removal of fines from efficiency standards means no consequences for rule-breakersElection 2025 live updates: Australia federal election campaignPolls tracker; election guide; full federal election coverageAnywhere but Canberra; interactive electorates guideListen to the first episode of our new narrative podcast series: GinaGet our afternoon election email, free app or daily news podcastPeter Dutton’s promise to axe fines for car companies in breach of vehicle efficiency standards is a “nonsensical” position from an opposition whose main campaign pitch is to lower fuel costs, Anthony Albanese has said.In its latest appeal to outer suburban motorists, the Coalition has pledged to abolish the “car and ute tax” that some carmakers say will drive up the price of popular vehicles.Sign up for the Afternoon Update: Election 2025 email newsletter Continue reading…
Peter Dutton’s promise to axe fines for car companies in breach of vehicle efficiency standards is a “nonsensical” position from an opposition whose main campaign pitch is to lower fuel costs, Anthony Albanese has said.
In its latest appeal to outer suburban motorists, the Coalition has pledged to abolish the “car and ute tax” that some carmakers say will drive up the price of popular vehicles.
The so-called NVES places an annual cap on emissions across a carmaker’s fleet of new cars to incentivise manufacturers to ship electric cars and hybrids to Australia.
Manufacturers that exceed the caps – which become more stringent over time – would face financial penalties under regime starting on 1 July.
The government has previously estimated the standards would save motorists about $1,000 a year, slash transport emissions and stop Australia from becoming a “dumping ground” for older, less-efficient cars.
Australia and Russia were the only two industrialised countries without such standards before the Albanese government’s NVES legislation passed in 2024.
The Coalition and parts of industry predict the penalties would be passed on to dealers and motorists, adding thousands of dollars to the price of petrol-powered vehicles including the Toyota RAV4, Ford Ranger and Toyota HiLux.
The total value of fines if manufacturers failed to comply with the requirement could hit $2.7b by 2029, according to an analysis referenced in the Motor Trades Association of Australia submission to last month’s federal budget.
In its election pitch outlined on Friday, the Coalition promised to keep the standards but abolish the penalties if it wins on 3 May.
Dutton said the Coalition wanted “cleaner, cheaper cars” in Australia but argued “unfair penalties” were not the solution.
“This is a tax on families who need a reliable car and small businesses trying to grow,” Dutton said.
“Instead of making life easier, Labor is making it harder and more expensive.”
Dutton is selling the policy in tandem with his main campaign promise to halve the fuel excise for 12 months, pitching the twin cost-of-living measures to outer suburban voters who could decide the election.
Albanese mocked Dutton’s announcement, suggesting it contradicted his push to lower fuel costs for motorists.
“I find it extraordinary that Peter Dutton, who says he cares about the price of fuel, doesn’t want people to have more fuel-efficient cars, which reduce the cost of filling up their car,” the prime minister told reporters in Darwin.
“It is a nonsensical policy that Mr Dutton came up with but I await a couple of day’s time – he’ll probably have another one on the same thing.”
The climate change and energy minister, Chris Bowen, said the announcement was copied from the “Doge playbook”, a reference to the Trump administration’s moves to unwind Joe Biden-era policies to accelerate the uptake of electric cars in the US.
“Let’s be clear on what these standards do: they bring us into line with the rest of the world, so that Australians can have more cars that are cheaper to run,” Bowen said.
“Turning standards into a toothless tiger, as the Liberals propose by abolishing enforcement of NVES, is worse than a voluntary standard.”
The Electric Vehicle Council said without the threat of fines carmarkers would have no reason to send their latest fuel-efficient models to Australia.
“The NVES doesn’t work without the credit and penalty system,” the council’s chief executive, Julie Delvecchio, said.
“Removing fines from the NVES is like having road rules without enforcement – no consequences for breaking the rules and no motivation to follow them.”