Federal climate change and energy minister Chris Bowen has left open the possibility the Albanese government could introduce stronger vehicle performance standards, as part of efforts to boost uptake of electric vehicles.
In an address to the National Press Club this week, Bowen did not rule out the possibility of stricter vehicle performance standards – but said the new Albanese government would consider “all viable options” to expand support for electric vehicles.
“We have an electric vehicle strategy, which we will now develop in office… and we’ll consider further policy options to add to and build on what we’ve already committed to.”
Asked specifically about vehicle emissions standards, Bowen said the new government would “consider all viable options to build on the policy announcements we’ve already made and are implemented.”
This appears a small but significant change in tack from Bowen, who has previously rejected calls for an emissions standards. The previous Coalition government toyed with the idea, but was scared off by a “carbon tax on wheels” headline in the Murdoch media.
Several major carmakers have called on Australia to introduce stricter vehicle performance standards – such as those that already apply in the European Union – complaining that the current lack of meaningful standards has resulted in Australia becoming a dumping ground for cheaper and more polluting vehicles.
The introduction of vehicle emissions standards could help halt a trend towards larger and more polluting vehicles in Australia, and help electric vehicle models to become a more attractive alternative.
Volkswagen has specifically cited the lack of vehicle efficiency standards – with the German automaker labelling the former Coalition government’s stance towards EVs as “third world” – as the reason behind the company’s delay in launching its electric models in the Australian market.
Just this week – just a month after the swearing in of the new Albanese government – Volkswagen has revealed plans to bring its electric vehicles to Australia by the end of next year.
As previously foreshadowed by The Driven, Bowen confirmed that a range of tax cuts for electric vehicle would take effect from 1 July – including exemptions to import tariffs and fringe benefit taxes for some electric vehicle models.
Bowen said that he would look to table new legislation in the first week of the new parliament, scheduled for the end of July, which would implement the tax breaks with retrospective effect.
“The Treasurer and I will take through legislation which implements our electric vehicle tax cut.
We promised to cut the tariffs and abolish fringe benefits tax on affordable EVs from 1 July this year and that’s exactly what we will do,” Bowen said.
“Of course, the Parliament doesn’t sit until late July, and so we will ask the Tax Office to make the tax cut retrospective, in accordance with usual procedure.”
Bowen said the federal government would also deliver on its promises for additional funding for electric vehicle charging infrastructure and a commitment to transition the government’s vehicle fleet to electric models.
“We also promised the Driving the Nation plan of an EV fast charger once every 150 kilometres on the nation’s highways, to convert the Commonwealth fleet to 75 per cent no-emissions vehicles,” Bowen said.
“To create a national Hydrogen Highways refuelling network, to deliver stations on Australia’s busiest freight routes and the development of Australia’s first National Electric Vehicle Strategy.”
“We’ve already been working away on implementing each of these policies and made good headway.”
The federal government’s car fleet amounts to an estimate 10,000 vehicles, with Bowen highlighting the potential benefits for the second hand car market.
“The Commonwealth turns over its cars every thee years. That leads into the second‑hand market. At the moment you can’t buy a second‑hand electric car in Australia and, as we all know, if you really want an affordable car it’s almost certainly a second‑hand car,” Bowen told the Press Club.
“So if you’re in the market, if you’re in the place of the market as many young people are, for example, buying their first car, they’d love an EV but you can’t get one second‑hand.”
“When the Commonwealth fleet starts to roll through and we have the Commonwealth disposing of its electric vehicles in 3 years after they’ve been purchased, you start to get the second‑hand market. Same with private fleets, our FBT discount and our tariff discount has its biggest impact, I’m happy to concede, on fleets.”
The legislation package will also enshrine into law the Labor governments new 43 per cent emissions reduction target for 2030, a commitment to net zero emissions by 2050, as well as a revitalisation of the Climate Change Authority.
Labor has previously said its transport policies could see as much as 89 per cent of new car sales being electric models by 2030 – with around one-in-six vehicles on the road by that time being electric.
“By 2030, our National EV Strategy will mean we have caught up, and affordable electric and hydrogen vehicles are a realistic choice for Australian families,” Bowen added.
See also: EU ministers agree to ban on new fossil fuel car sales from 2035
And: All petrol cars sales must stop by 2038 for transport sector to meet net-zero