Senate debates

Tuesday, 11 February 2025

Questions without Notice

New Vehicle Efficiency Standard

2:00 pm

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

My question is to the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator McCarthy. The Motor Trades Association of Australia has released data showing Labor's family car and ute tax will impose a $2.7 billion cost on car manufacturers in 2029. Why is the government imposing this tax on Australian families in the middle of a cost-of-living crisis?

Hon. Senators:

Honourable senators interjecting

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

I will wait for the Senate to come to order. Order, Senator Ayres and Senator Wong! Senator McCarthy.

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

I thank Senator McKenzie for the question. I wonder if this is the end of their weekend policy on vehicles. The Albanese Labor government is working to get more cleaner and cheaper-to-run cars into the market so they're accessible to all families, in Blacktown, Launceston and Cranbourne—a standard that will save Australians $1,000 per year on average on fuel costs. We all remember the days when there were only one or two hybrids or EVs on the market. which were prohibitively expensive for families. Under the Albanese government, we are now seeing over 160 new models available, including Australia's first EV for under $30,000, and they're getting cheaper. Cars that have never been available to Australians before, like new Ford Ranger plug-in hybrids and—

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Minister McCarthy, please resume your seat. Senator McKenzie, a point of order?

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

A point of order on direct relevance: I asked about the Motor Trades Association's modelling which had been released today and which was also on the front page of the Australian Financial Review.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Thank you, Senator McKenzie. The minister is being directly relevant to your question. Minister McCarthy.

Photo of Tim AyresTim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | | Hansard source

You'd make them work it for free. You'd force them to work it for free.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Ayres, order! That's twice within a matter of about four minutes I've called you!

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

We know that, under the Liberals and Nationals, the markets would once again be frozen in time with the best cars on the market going to the other countries. So what MTAA's analysis actually highlights is how ridiculous claims by lobbyists and the opposition were. Their overblown campaigns from not even a year ago projected brands would have to wear $38 billion in fines which would be passed through to consumers and push prices up.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, first supplementary?

2:03 pm

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

According to the Motor Trades Association, the average tax on a Toyota would be $2,855, on the average Ford it would be $2,959 and on the average Kia it would be $3,102. Why is the Albanese government forcing up the cost of new cars for everyday Australians in the middle of a cost-of-living crisis?

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

We do have many quotes from experts in the field. In fact, Rohan Martin, the CEO of the National Automotive Leasing and Salary Packaging Association, says:

From Werribee to Wanneroo, ordinary Australians living in the outer suburbs are actually the people most likely to take advantage of and benefit from the discount to battery EVs and plug in hybrids provided through the FBT exemption and novated leasing. We're also seeing strong pick up among workers living in regional centres including Ballarat and Toowoomba.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, second supplementary?

2:04 pm

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

Minister, I'm happy to table a copy of the analysis by the Motor Trades Association if you need. At a time when more Australian families are buying hybrid cars, why, in the middle of a cost-of-living crisis, is the government taxing hybrids when these cars play an important role in reducing transport emissions? Why are you taxing hybrids?

2:05 pm

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

It's interesting hearing the questions from Senator McKenzie, given that we had no support from those opposite to improve the cost of living for all Australians, in particular for the support around the tax.

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

Here we go with the same thing.

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

Let me tell you again, because it actually matters to the Australians out there that, every time we put something forward in this Senate to improve the cost of living for Australians, that side voted no.

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

On a point of direct relevance: the minister, in three questions now, has not gone to the Motor Trades Association data that the minister she's representing has a copy of.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

On the point of order: the senator in question, Senator McKenzie, referenced the cost-of-living crisis in her question. The minister is entirely relevant in responding to that point, as she is doing.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, you did reference the cost of living, I think, in all of your questions but certainly in this one.

Senator McKenzie, you're not in a debate with me. You've called the point of order. The minister is being directly relevant to your question.

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

It is interesting to hear Senator McKenzie. We know that there is division on the other side and that there is no conclusion of any of their policies. In fact, they really have no policies except one. But let me see what Paul Fletcher says:

If Australia had fuel efficiency standards in line with comparable nations, estimates of the fuel saving per passenger vehicle could be above $500 per year, or nearly $28 billion in total by 2040.

(Time expired)