Dutton doubles down on so-called ‘ute tax’

Federal Opposition Leader Peter Dutton has doubled down on his vow to effectively dismantle Australia’s new vehicle emissions regulations, saying he will not enforce fines for car makers if he becomes Prime Minister.

The New Vehicle Emissions Standard (NVES) will begin enforcing fines for car makers set to be issued from 1 July 2025 for breaching new emission laws.

The laws see a gradual reduction in CO2 emissions for brand new cars sold by each car maker between now and 2029. There is no emissions ‘tax’ or otherwise on existing or used vehicles.

The amount of CO2 permitted varies based on the vehicle size and weight, with concession for larger vehicles – with ‘Type 1’ and ‘Type 2’ targets meaning a large SUV or dual-cab ute does not have to match the emissions of a small city hatchback.

Already watered down – with more lenient CO2 targets than originally planned – and with criticism it lacks a ‘zero emission’ date.

While keeping the targets in place, Mr Dutton today said he will eliminate penalties for car makers failing to meet the new regulations.

“This is a tax on families who need a reliable car and small businesses trying to grow,” Mr Dutton said.
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“A Coalition government will scrap this tax, so Australians can keep more of their hard-earned money when purchasing a new car.”
Dutton’s remarks follow objections to the NVES from the Federal Chamber of Automotive Industries (FCAI), a body representing the majority (but not all) car brands selling new vehicles in this country.

The FCAI has previously suggested the NVES will push the showroom price of new vehicles up by as much as $25,000 by 2029, with Dutton today saying a Toyota RAV4 “could cost as much as $9700 more” and the Ford Ranger “could jump by as much as $14,400”.

“The Coalition backs lower emitting vehicles because more fuel-efficient cars save Aussies money every time they fill up — but we won't back Labor's car tax that drives prices through the roof,” shadow energy minister Ted O'Brien added.

Yet the EV Council of Australia – which includes non-FCAI members Tesla and Polestar electric car brands – has already refuted these claims.

“The FCAI’s public claims about price are not honest or credible,” former EV Council CEO Behyad Jafari said in a statement in February 2025.
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“You won’t hear any actual car maker echo the FCAI’s claims because they know their credibility would be shredded if they did.”
The projections from the FCAI – and Mr Dutton – are based on existing vehicles, not more efficient ones.

More and more electric and hybrid dual-cab utes hit local showrooms – with the latest JAC T9 plug-in hybrid electric vehicle (PHEV) revealed at the recent Melbourne Motor Show, following the GWM Cannon Alpha and BYD Shark 6.

The Ford Ranger PHEV is due to arrive in Australian showrooms mid-year, priced from $71,990 plus on road costs, complete with the category benchmark of 3500kg braked tow-rating.

The PHEV Ranger has a CO2 rating of 66g/km according to Ford – meaning it already complies with the 2029 NVES target of 110g/km.

This would also give Ford a financial credit to offset fines elsewhere, lowering the overall penalty, as the NVES fines do not target specific car types – such as utes or SUVs – but instead are averaged across all the vehicle types a brand sells.
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The upcoming Kia Tasman ute – the brand’s first foray into the hotly-contested dual-cab segment – is planned to be in Australian showrooms in mid 2025, powered by a 2.2-litre turbo-diesel four-cylinder.

Yet Kia has said it can meet NVES targets by offsetting the Tasman’s overall CO2 with its expanding electric and hybrid models, with plans for 10 hybrids in Kia showrooms globally by 2030.

Both political parties have said they support Australia’s participation in the Paris Agreement which includes reaching net zero emissions over the next 25 years.
According to the Federal Government website, “The introduction of the Standard keeps Australia on track to achieve net zero emissions by 2050.”

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