Dai Le (Fowler, Independent) Share this | Hansard source

Thank you, Deputy Speaker. I rise to speak to the Treasury Laws Amendment (Electric Car Discount) Bill 2022, which provides fringe benefits tax exemptions for zero- or low-emission cars. I stand in support of the honourable member for Kennedy's amendment, which provides a framework for how a transition to renewables can benefit low-socioeconomic communities like my electorate of Fowler, who are the backbone of Australia. In keeping with this, I will also be speaking to an amendment to include hybrid electric vehicles—that is, vehicles that do not require an external electricity source to be charged.

This government and this parliament have strongly endorsed progress on Australia's climate policy and climate awareness, and I stand largely in support of this movement. I believe Australia should strive for a green and renewable future. It is imperative that we do so to support the wellbeing of future generations and preserve this beautiful country we call home. Handled correctly, a transition to renewables presents rich and diverse opportunities for the Australian economy that will be sustainable into the future. Furthermore, I commend the government for its desire to reduce transport emissions and make electric cars more affordable for families and businesses. Encouraging the uptake of battery electric cars, hydrogen fuel cell electric cars and plug-in hybrid electric cars is in theory a positive step. However, the government's amendment bill only helps a narrow group of employee beneficiaries and disproportionately supports high-income earners.

Recently we have seen the impact on household budgets that a spike in energy prices caused. Prices increased as much as 18.3 per cent in New South Wales, heavily impacting our most vulnerable. I would ask the chamber to consider the impact that increasingly extreme summer temperatures will have on the household budgets of low-income families. Some will struggle to afford necessary amenities such as air conditioning, something a lot of us take for granted. I raise this example to show that it is hardworking people in electorates like my own, as well as regional electorates, who bear the brunt of climate change and climate policy.

I therefore strongly support steps towards a greener future, but we must be careful to ensure it is not at the expense of those already doing it tough in places like Fowler. My constituents will be completely unaffected by this fringe benefits tax exemption for electric vehicles. Even with this exemption, electric vehicles are still simply too expensive for small businesses in Fowler. This exemption is only useful for employees or employers who can offer salary sacrifice. Electric vehicles cost between $15,000 and $20,000 more than the equivalent petrol and diesel cars, a huge upfront cost to expect small businesses to pay.

Furthermore, the amendments don't apply to hybrid vehicles, or HEVs, which are at a lower price point than other EVs. HEVs are the third-most-sold types of cars in Australia after petrol and diesel vehicles. If we are to convince normal, everyday consumers to start making the switch, we also need to ensure HEVs are included in any subsidies. Thank you.

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