Opposition leader Peter Dutton now says a Coalition government would keep a popular electric vehicle (EV) tax break that his party once described as “bad policy dressed up as tax reform.”
Dutton, who is ten days out from a make-or-break federal election, was asked on Monday whether an elected Coalition government would repeal a tax break for EVs which went into effect in 2022 and exempts EVs from the Fringe Benefits Tax (FBT).
In response, Dutton told journalists in Melbourne that “we don’t have any proposals to change those settings”, adding that “I want people to have choice.”
“If people want to buy an EV, that’s fantastic. If they want to buy a Ford Ranger or a Toyota HiLux, or whatever it might be, that’s a choice they should have.”
Dutton’s about-face on the EV tax break might have come as a surprise to some of his colleagues, such as opposition infrastructure spokeswoman Bridget McKenzie who asked on social media in March:
“What has to be cut from the federal budget to pay for Labor’s pursuit of an EV-only future?” Her comments were followed by shadow treasurer Angus Taylor who described it in March as “bad policy dressed up as tax reform”.
Passed into law in 2022, the tax cut was introduced with help from the Greens and independent senator David Pocock with a proviso that PHEVs be removed from the exemption on April 1, 2025.
In the months and weeks leading up to this deadline, industry groups have been clamouring for the federal government to extend the lifeline to PHEVs, which have seen a notable increase in demand in recent years.
But Peter Dutton’s comments have nevertheless been welcomed by one of those industry bodies, the Electric Vehicle Council (EVC), who said that the Coalition’s willingness to leave the EV FBT exemption in place offers certainty for Australian families who are looking to switch to a cleaner and more affordable form of personal transport.
“The Electric Vehicle Council is pleased to see our call for bipartisan support during the election campaign answered, with the Coalition’s backing of the FBT policy,” said Julie Delvecchio, EVC chief executive.
“This will mean Australians can continue to access cost-of-living relief by shifting to cleaner, more affordable cars.
“It is clear both major parties recognise the importance of this policy in cutting the cost of living for all Australians. Maintaining this commitment means more Australians can confidently plan for an electric future knowing the next government will support the decision to go electric.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.