DCD Comment
The newly enacted Vehicle Efficiency Standards (NVES) will significantly increase the cost of SUVs, utes, and four-wheel drives, imposing an undue financial burden on Australian families. This legislation, which aims to reduce carbon dioxide (CO2) emissions from new vehicles, is effectively a punitive tax on popular family cars.
Despite claims that the NVES will promote low and zero-emissions vehicles, the law will penalize automotive dealers selling higher-emission vehicles while rewarding those who sell cleaner alternatives. The Federal government has allocated $85.5 million (US$56.4 million) to establish a regulatory body to monitor vehicle emissions data as part of the 2024-2025 budget.
Nationals Senator for Victoria, Bridget McKenzie, criticized the legislation, highlighting that it passed the Senate without any meaningful debate. According to Senator McKenzie, the refusal of the Labor party to allow second reading speeches and their blocking of attempts to refer the legislation to a Senate inquiry reflects a lack of transparency and democratic process.
Senator McKenzie voiced concerns that the NVES would add thousands of dollars to the cost of many popular SUVs, utes, and four-wheel drives. At a time when families are already grappling with a cost-of-living crisis, this legislation will exacerbate their financial strain. She argued that this policy would also discourage families from upgrading to newer, more fuel-efficient vehicles, thereby hindering efforts to reduce transport emissions.
Furthermore, the Coalition cannot support a policy that unfairly targets the vehicles Australians prefer to drive. A more effective approach would be a technology-neutral strategy that promotes innovation and flexibility in achieving net zero emissions, rather than imposing restrictive and costly measures on consumers.