Ute and family car tax – nothing has changed

The Government’s announcement last month about its proposed new tax on utes, SUVs and 4WDs was alarming for local car dealerships, farmers, tradies and families.

If the tax goes ahead, the cost of popular models could increase by up to $25,000 (e.g. $14,490 more for a Toyota Hi-lux and $25,050 more for a Toyota Landcruiser), starting on 1 January 2025.

In response to the outcry from the farmers, tradies, small business owners and families who will be forced to pay more for new cars after the next election, Labor attempted to reverse its policy. However, the changes announced by Ministers Chris Bowen and Catherine King on 26 March will provide no relief.

Labor’s family car tax is still aimed squarely at the country’s top selling vehicles. While minor concessions have been made for some large 4WDs such as the Toyota Prado and the Ford Everest, they join utes such as the Ford Ranger, Toyota Hi-Lux and the Isuzu D-Max in still facing crippling penalties under Labor’s family car and ute tax.

The Government has also failed to reduce the impact of its tax on passenger cars, including popular hybrids and SUVs Australian families love to drive.

The Coalition agrees that Australia needs to reduce emissions. The issue here is the level of the Government’s ambition. It isn’t practical, measured or sensible as family budgets are already maxed out with cost of living pressures.

Instead, the Coalition supports a low emissions transport sector as Australia moves towards 2050 based on the principles of:

• Choice – maximise the choice of vehicles available to Australians.
• No disadvantage – the poor, vulnerable and regional Australians should not be worse off.
• Affordability – the overall financial affordability of cars currently available should not be diminished.

It’s a low emissions policy not just EVs. Hybrids, hydrogen and biofuels all have a role to play. To give you a sense of the opposition to the approach that the Albanese Labor Government is taking, it has been criticised by the Australian Automobile Association, the Federal Chamber of Automotive Industries and the Australian Automotive Dealers’ Association.

The Albanese Government must give two firm guarantees to Australian families that under its proposed vehicle efficiency policy:

• no car models will experience price rises as a result of Labor’s family car and ute tax; and
• no car models will be withdrawn from, or have access restricted as a result of Labor’s car and ute tax.

Let’s hope Labor can see sense when it comes to this vital concern for regional and rural Australians.