Vehicle efficiency standards a ‘new tax’, Littleproud says

Australians have “sleep walked into paying a new tax”, David Littleproud has said in remarks lashing new vehicle efficiency rules.

The Albanese government’s New Vehicle Efficiency Standard (NVES) came into force on New Year’s Day.

Under the new rules, which are backed by the automotive industry peak body, carmakers must meet aggregate CO2 targets if they want to sell their cars in Australia.

The National Party leader said on Thursday the standard would push car prices up.

“What Australians need to understand is they’ve just been sleep walked into paying a new tax,” he told Sky News.

“As of this year, you’ll pay thousands of dollars more to buy a new car. And this is putting us above standards that are greater than anywhere else than the rest of the world.

“Anthony Albanese doesn’t understand we’re a small car market and what that means is that manufacturers are moving towards zero emissions, but they need time and technology and they haven’t been given that.”

Many other developed economies, including the US and Japan, have similar standards.

The Albanese government has said the new standard would bring more emissions-friendly vehicles onto the market and ultimately save Australians money at the bowser.

Spruiking the NVES on Wednesday, Climate Change and Energy Minister Chris Bowen said the changes meant “more choices of better, cheaper to run cars for Australians”.

“It will save around $95bn in running costs between now and 2050,” Mr Bowen said in a social media video.

“It’s good news for the environment, it’s good news for motorists, it’s more choice for Australians, making the cars manufacturers send us better, cheaper to run cars.”

But Mr Littleproud argued it would actually limit options, claiming regional Australians would have a harder time getting the vehicles they need.

“It’s about choice,” he said.

“And the reality is that we need choice and we need to be able to have affordable cars, not put a tax on cars.

“And particularly for us in regional Australia, I’ve got people that wouldn’t get out of their front driveways before the batteries of an electric vehicle would run dry, let alone put it in a ute where you couldn’t tow anything.

“So this is the reality ... we’re a big country and you’ve got to think about the practical reality of how these policies are implemented.”

The standard does not tell automakers how to meet their CO2 goals, meaning they can continue selling fuel-thirsty vehicles like utes.

But they will be able to sell more vehicles with tighter emissions ratings.

The Coalition, which has committed to the national net-zero target by 2050, has not said if it would scrap the NVES if elected.