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Mallee residents to bear the brunt of Labor’s Family Car Tax

Mallee residents and regional Australians will pay up to $25,000 more for the region’s most popular cars, as the Albanese Labor Government proposes subsidising the largely metropolitan uptake of electric vehicles, Member for Mallee Dr Anne Webster says.

“Electric vehicles cannot pull their weight on farms, nor for grey nomads,” Dr Webster said, “Regional Australians drive long distances for appointments and to stay socially connected, and they will cross-subsidise city people who will almost solely benefit from Labor’s EV plans.”

The Federal Chamber of Automotive Industries (FCAI) released data today showing 2023’s most popular vehicle, the Ford Ranger, looks to incur penalties of between $11,350 and $17,950 under Labor’s family car tax plans – due to start on January 1st. The popular Toyota Landcruiser could be taxed between $19,580 and $25,050 and the Mitsubishi Outlander between $11,650 and $12,390.

Even hybrids like the Toyota RAV4 could incur penalties of $1,490 and $4,890 from 2027, according to the FCAI.

“It gets worse – I spoke confidentially to one dealership last week who faces laying off a quarter of their 40-strong workforce due to the impact of Labor’s family car tax.”

The FCAI indicated this morning that the Albanese Labor Government’s trajectory is too rapid compared to international experience, and that the US Biden administration is rethinking the pace of transition to electric vehicles.

Labor’s model has been criticised by the Australian Automobile Association, the Australian Automotive Dealers Association and the FCAI. Even Hyundai, who broadly support a transition to EVs, say the 2025 implementation timetable is too rushed.

“EVs have a great public relations machine behind them, but it doesn’t match up to the reality. Just this weekend a Mallee resident told me an EV driver was stranded in the region thinking they would be able to travel 500 kilometres, but their battery ran out.  Labor needs to listen to regional voices and re-think their plans to tax regional Australians to sandbag inner city seats from the economically illiterate Greens.”

Anne Webster MP