Opposition leader Peter Dutton said that if the coalition is elected, it will maintain the standard for low-emission vehicles but will not enforce penalties.
Opposition leader Peter Dutton has pledged to abolish penalties for new car models that do not meet the government’s fuel economy standards set by the coalition.
Under the current plan introduced by workers that began in July, new vehicles that are unable to meet the new Vehicle Efficiency Standard (NVES) emission standards will face heavy penalties.
This standard is central to the government’s mission to reach net zero by 2050.
But Dutton says if the coalition government is elected in May, the standards set by the NVE will remain, but penalties for failing to comply with the guidelines will be placed in the scrap heap.
“This is a tax on families that need reliable cars and small businesses that are trying to grow,” he said.
“Instead of making life easier, labor makes it more difficult and expensive.
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“The Union government will scrap this tax, so Australians can keep more of their hard-earned money when buying a new car.”
The government’s adoption of NVE and the coalition’s plan to not introduce fees to violate compliance has drawn commentary from both sides of the fence.
An electric vehicle will be billed in Ottawa on July 13th, 2022. Canadian media/Shaun Killpatrick
Public is not ready to switch
Despite the improvement in overall vehicle sales increase over the year, the public was still not ready for a major leap into electric vehicles (EVs).
Tony Weber, CEO of the Federal Automobile Chamber of Commerce (FCAI), expressed concern about public preparations for fully accepting EVs, with EVS accounting for just 4.9% of vehicle sales in March 2025, from 9.5% in March 2024 and 6.8% in March 2023.
“We are at a key point in transitioning to a low-emission vehicle fleet,” Weber said.
“However, the reality is clear, and Australian families and businesses have not been transformed into EVs in large numbers.
“Although EV supply is on the rise, demand for EVs is weak as 89 models are available now in Australia.”
He said Australian consumers followed the same pattern as other developed markets in a world where a small section of “early adapters” was participating in the EV, but the rest of the buyers were not interested.
“The Australian automotive industry has long advocated for ambitious and achievable emissions standards,” he said.
“Once again, we need to ask questions about government modeling, particularly their assumptions regarding consumer acceptance of new low-emissions technologies.”
Push the EV
On the other side of the debate, groups that include the Climate Council, the Australian Conservation Foundation, Greenpeace Australia, and the Australian Electric Vehicle Association were critical of the coalition’s plan to abolish NVE penalties.
“Removing the fine from (standard) is like turning off the speed camera and having a speed limit,” said Julie Delvecchio, CEO of the Electric Vehicle Council.
“It means fewer penalties, fewer fuel-efficient vehicles, and higher running costs.”
Greenpeace Australia Pacific Climate and Energy Head Joe Ruffalowitz claimed that the policy effectively hampers Australia’s position in the global EV arena.
