Tim Storer (SA, Independent) Share this | Hansard source

The Road Vehicle Standards Bill 2018 and four other related bills replace the Motor Vehicle Standards Act 1989 to implement the federal government's updated framework to regulate how motor vehicles are made available to the Australian market for the first time. The government is seeking to ensure that Australians enjoy a car fleet that is safe and displays suitable environmental performance, with adequate consumer safeguards and choice. This concludes the consultation process with the automotive sector, which has taken four years. It cements the government's approach to managing vehicle entrants to Australia's fleet.

Put simply, this bill and its accompanying regulatory framework define how motor vehicles are imported into Australia and given permission to enter the register of approved vehicles. The first and main way that this may occur is via the type approval pathway; the second is the concessional entry pathway. A type approval is the permission given by the government to car manufacturers to bring a compliant vehicle to market. This is the primary path. In 2018, 98 per cent of the 1.2 million vehicles that entered Australia came to market this way. The second means of vehicle entry to the Australian market is the concessional path. This allows the importation of new and used vehicles that were not made available via the type approval pathway, under highly restricted circumstances. These vehicles comprise less than two per cent of vehicles entering Australia for the first time. This legislation provides for the regulatory oversight of these two pathways.

In terms of the second concessional pathway, these vehicles that have not been made available to the market must comply with the criteria set out in the Register of Specialist and Enthusiast Vehicles, the SEV register. The draft rules explain the range of vehicles that may be released to market under this scheme, to include mobility and environmental vehicles. This is a positive since it will have the effect of expanding consumer choice and forcing car manufacturers to release a wide range of models to what they consider to be a small and distant market. However, we now have an opportunity to do more when it comes to electric vehicles, an issue I've advocated on since joining the Senate.

Australia's uptake of electric vehicles, EVs, has been slow compared to the rest of the developed world. Of the approximately 17 million light passenger vehicles in Australia, only around 7,300 are EVs. In 2017, around 2,300 electric vehicles were sold in Australia, representing just 0.2 per cent of the market. As the Chair of the Select Committee on Electric Vehicles, I've heard a wealth of evidence on why it is in our interests to increase the uptake of EVs here in Australia. They stand to improve our health, our environment, our economy and even our national security. The slow uptake of EVs in Australia can be partly explained by a lack of model availability, higher up-front purchase prices and poor consumer familiarity with new technology. These are all factors that would be assisted through a deeper and more diverse second-hand electric vehicle market.

New Zealand provides a useful comparative case study. Our neighbour has around 2,000 more EVs on the road than we do, despite having a population smaller than Sydney. This is largely thanks to policy decisions it has made around the importation of second-hand EVs from larger markets, which have resulted in greater range and affordability. To take a real-world example, there are currently 250 Nissan LEAFs for sale online in New Zealand. It's possible to buy a 2012 model for around $12,185. In Australia, by comparison, a search shows that just 14 Nissan LEAFs are available, with all but two priced over $20,000. The BMW i3 is another example. Twenty-eight are available online in New Zealand, and just five are available here in Australia. A 2015 BMW i3 may be purchased in Australia for $41,000 with 48,800 kilometres on the clock. The same model is available in New Zealand for the lesser amount of $37,000 with just 2,500 kilometres on the clock. These are examples of the significant premium the Australian motoring public pays compared to New Zealand and are a consequence of the supply constraints that limit Australia's market. This is why it is a shame that the government missed this opportunity to increase the liquidity and competitiveness of Australia's second-hand EV market.

My proposed amendment rectifies that. It inserts an additional clause that requires the accompanying rules in this legislation to provide for the inclusion onto the SEV register of previously approved electric vehicles—that is, electric vehicles or plug-in hybrids that have entered Australia via the main type approval pathway but have had their type approval expire, which generally happens five years after the approval comes into force. This will allow independent importers to bring in second-hand EVs from comparable markets, increasing the depth of Australia's EV market. For clarity, this reform would mean that, from next year, second-hand EVs built in 2014 and earlier could start being imported into Australia.

It is a modest but highly significant amendment that would benefit Australian consumers and assist us in meeting our Paris agreement commitments. I'm advised that it could initially lead to an additional sale of around 3,000 electric vehicles per annum. These vehicles would be a way for the Australian market to test its appetite for EVs and could lead to stronger sales of new vehicles of this class. It would also encourage car manufacturers to offer more competitive pricing and a wider range of stock for new EVs here in Australia. If car manufacturers choose not to do so, independent importers could fill the market gap quite quickly. This suggestion would result in an increased supply of electric vehicles in Australia at a far more affordable price, without requiring subsidies from the taxpayer. Some may claim that such independent imports will place consumers at risk. While I understand these concerns, I believe they could easily be addressed with the right regulations. For example, importers should be required to meet all Australian consumer obligations around warranties, recalls and insurance, and arrange for the vehicles to be inspected by a registered authority, approved to inspect imported vehicles.

In summary, I call upon the government and the opposition to accept this modest but significant amendment. It will result in more electric vehicles coming to market, providing more choice and lower prices for Australian consumers and improving our health, environment and national security.