The opposition leader, Peter Dutton, faced questioning regarding the Liberal Party’s recent pledge to abolish a $3 billion electric vehicle (EV) tax break, a popular initiative among voters. This announcement came to light following a party decision to eliminate the existing EV tax concession if they secure victory in the upcoming election on May 3.
On Monday, Dutton affirmed that he did not intend to remove Labor’s fringe benefits tax exemption, which applies to EVs costing under $91,000 acquired via novated lease arrangements. When challenged on this matter, he clarified that the Liberal Party’s opposition was specifically against the government’s tax on hybrid vehicles, not a shift in their stance regarding EV policies.
In a press release, alongside Shadow Treasurer Angus Taylor and spokesperson for finance Jane Hume, Dutton reaffirmed the party’s commitment to repealing the EV tax concession, describing it as poorly designed. During this promotion, he emphasised, “There has been no policy change,” and maintained a consistent message throughout the discussions.
When questioned further at a media event in Hobart, Dutton reiterated the absence of any alterations to the Coalition’s policy, indicating that ongoing debates merely illustrate a difference of opinion rather than a policy shift. The Coalition’s proposal to unwind the existing subsidies is projected to save taxpayers approximately $3 billion in the next few years and an estimated $23 billion in the medium term.
The swiftly evolving political landscape around the EV tax benefits underscores how tax policies are becoming pivotal in voter engagement as the election date approaches. The issue remains contentious, with the Coalition asserting the need for fiscal responsibility while the government continues to advocate for supportive measures for EV adoption.