DR ANNE WEBSTER MP

Shadow Minister for Regional Development, Local Government and Territories
Shadow Minister for Regional Communications
Member for Mallee

Mallee families hit by Labor’s car & ute tax

Monday 1 July 2025

The Albanese Government’s unfair tax on family cars, utes and hybrids commences today (1 July) which will add up to $17,000 to the cost of new petrol and diesel fuelled cars by 2029.

Dr Anne Webster MP said Mallee families and small businesses will start paying Labor’s tax every time they buy a new car, particularly because Mallee people are more than 7 times less likely to have an EV that benefits from the new tax arrangements.

“This is an unfair Labor tax on families in the midst of a cost-of-living crisis, who need to buy a car to meet their needs or small businesses looking to invest in a new car to grow their business,” Dr Webster said.

“The Albanese Government’s car and ute tax will drive up the price of new and second hand cars and make life harder for Australian families to get the vehicles they need.”

“Labor’s tax reduces choice for Australians by taxing families and business who don’t want to or can’t purchase an EV, or where there simply is not an EV ute or other vehicle fit for purpose for regional Australians.”

“There will be perverse impacts of Labor making new cars more expensive to buy, with many people likely to keep their current car on the road for longer, resulting in older, less efficient and less safe cars on our streets and highways than might otherwise have been the case,” Dr Webster said.

Dr Webster added that Labor’s new car and ute tax will further entrench the tax inequity between those who can afford to buy or are given a company car to drive, and those forced by work, location or circumstance to use petrol, diesel and hybrid cars.

“EV drivers are able to opt out of paying fuel excise used to fix and maintain the roads they drive on, while everyone else is taxed when they fill up at the bowser as well as hit with Labor’s hefty tax when they buy a new car.

“Labor’s tax is estimated to add up to $7,400 to the cost of a Ford Ranger in 2026 and up to $14,400 by 2029.

“The popular RAV4 hybrid family vehicle will incur almost $5,000 additional cost by 2029 as a result of Labor’s tax.

Dr Webster said the Coalition opposed Labor’s car and ute tax because Australians do not want the Government in Canberra dictating what vehicles they should buy.

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