Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

My question is to Senator Wong, the minister representing the Minister for Climate Change and Energy. Overnight, the Biden administration in the US has significantly watered down their fuel efficiency standards and backed away from aggressive EV targets. Instead of requiring two-thirds of car sales to be electric by 2030, the new rules reportedly set the target as low as 35 per cent EV sales by 2032. Labor's proposed family car tax has set a much more aggressive rate of emissions reduction than the American scheme. Will the government admit it has got its proposal wrong and commit to changes that will not increase the cost of buying cars for Australians?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank the senator for her question. I take the opportunity to point out—because I understand this has been the subject of some questioning while I have not been able to be here—that, obviously, Australia lags behind the US and most other developed countries when it comes to vehicle emissions standards. I am sure that the senator would be aware that it is important for us to join the rest of the world and comparable economies in terms of the vehicle efficiency standards.

I note that we have had a consultation process. I understand that the ministers are working closely with industry to integrate sensible suggestions into the legislation. We have obviously taken note of changes made to the US standards which were announced this week. These are one of the matters that the government will be considering as we finalise the policy. I am sure that the Minister for Transport and the Minister for Climate Change and Energy will be happy to consider sensible suggestions to ensure the policy does what it is intended to do—that is, to give Australians more choice of vehicles that cost less to drive and cost less to charge.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

That they can't afford.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The interjection from Senator McKenzie is interesting, because it suggests that putting in place something similar to what other developed countries have will somehow cause the sky to fall in. I am reminded of the long history of hyperbole on that side when it comes to climate policy. We remember, don't we, the 'Whyalla wipeout' and the $100 roasts? Barnaby Joyce has certainly ensured that members of the National Party and parts of the Liberal Party certainly exaggerate, but we will continue to be sensible. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, first supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Labor's proposed family car tax is more punitive than the United States', as it will apply to a larger range of utes and commercial vehicles, it will force an annual emissions reduction rate nearly eight times higher than has been the case in the United States and it will give Australian consumers and auto dealers less time to adapt. Today the US has backed down from its scheme. Why is the government punishing Australians for their car choices in the middle of a cost-of-living crisis?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

It's interesting that the only reference to the cost of living is a political flourish at the end of a question about something else. We've had so few cost-of-living questions from those on the other side. They're much more interested in having a whole range of abstract or confected political arguments than actually talking about the cost of living. I again would say to the senator that we have had a consultation process. Our goal remains to provide a choice of cleaner, cheaper-to-run cars for all Australians who want them. We want Australians to have more choice in new cars, not less choice, and to pay less for fuel.

There's a lot of misinformation that has been perpetuated by those opposite, which is unsurprising because what we know is that even those on that side who, over the years, have taken a more sensible position on this issue—and I'm happy to come back and quote some of those on the opposition benches who've had a more sensible position—have been shouted down by Senator Canavan and Senator McKenzie.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, second supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

According to reports, the Biden administration has changed its tune and is now embracing hybrids to help reduce vehicle carbon emissions. Under Labor's proposed family car tax, poplar hybrids like the Toyota RAV4 would be punished with penalties of up to $4,800 and, for the hybrid Corolla, of over $5,000. Why won't the government recognise the role that hybrids play in reducing emissions here in Australia rather than increasing their cost under the proposed emissions standard?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I know that Senator McKenzie really can't wait. She hasn't waited for the government to actually make a final decision on this before running a fear campaign, a scare campaign, about particular cars. I again remind her that she's asking questions about reports of US action in an economy that has had these sorts of standards for how many decades? I can't recall. It's been decades. So the scare campaign, I think, falls a little short when we're reminded that, in fact, the United States, which she's asking about, has had these standards in place for many years. The government will take an appropriate approach—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

On a point of order, President, on relevance: the question was about the role that hybrids play in a low-emissions transport sector going forward whilst being absolutely ruled out. It's not me. It's not the US. It's actually economic modelling that says it's the case.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator McKenzie. It also went to the Biden administration, so the minister is being directly relevant to your question. Minister, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

If I may quote Mr Fletcher:

So when fuel efficiency standards were introduced in the US, the most popular models before introduction stayed the most popular models after introduction.

Also from Paul Fletcher:

There wasn't a material change in price and we don't expect that there would be a material change in price here.

These are your own colleagues. (Time expired)