Peter Dutton, the leader of the Liberal Party, has reversed his stance on a significant policy for the second time during this federal election campaign. The Coalition plans to eliminate a tax concession for motorists purchasing electric vehicles (EVs) as part of efforts to finance an increase in defence spending.
In a recent press conference, Dutton was questioned about the government’s fringe benefits tax exemption for EVs valued under $91,000 purchased through novated leases. Two days prior, Dutton had stated that the Coalition opposed the government’s tax on hybrid vehicles, giving no indication of a shift in position on EVs.
However, a statement released by Dutton, Shadow Treasurer Angus Taylor, and finance spokesperson Jane Hume announced that should the Coalition secure victory in the upcoming election, they would revoke the EV tax concession, which they claim is poorly designed and funded by taxpayers. According to this announcement, abolishing these concessions is expected to save upwards of $3 billion in the short term and potentially $23 billion in the medium term.
Despite his earlier comments promoting consumer choice in vehicle purchases, Dutton’s latest move highlights a shift in strategy to assist in funding a projected $21 billion boost for Defence Forces by 2030, aiming to raise total military spending to 3 per cent of GDP within a decade. He insists that while he supports the option for individuals to purchase EVs or traditional vehicles such as a Ford Ranger or a Toyota Hilux, the financial adjustments are necessary.
The response from Labor has been swift, with Defence Minister Richard Marles questioning the Coalition’s funding sources for their defence spending pledge. Marles criticises their approach for lacking transparency and detailed financial planning, indicating that voters deserve clarity on the budget implications of every policy. Both major parties are anticipated to disclose their election costings in the coming week.
This development marks the second instance of a policy reversal by Dutton’s campaign, reflecting a dynamic and potentially unstable approach as the election approaches.