The Coalition has vowed to scrap Labor’s $2.1 billion electric vehicle subsidy, arguing taxpayers should not be forced to help fellow Australians buy their cars.
Shadow Attorney-General Michaelia Cash has confirmed the Opposition would abolish the subsidy, accusing Treasurer Jim Chalmers of having a “spending addiction” and calling on the government to rein in expenditure.
WATCH THE VIDEO ABOVE: Coalition demands scrapping of EV subsidies worth $2.1 billion
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“Australians are paying a very, very heavy price,” she told Sunrise on Wednesday.
“Everything they touch under this government costs more.
“Jim’s already said he doesn’t know how to cut his spending addiction. So, here’s a really good start, Jim. Cut it tomorrow.
“(A total of) $2.1 billion in savings. That’s our commitment to the Australian people.
“Labor’s very good at spending taxpayers’ money. They need to rein in their spending.”
Cash said the proposed cut would form part of the Coalition’s broader savings agenda, claiming the party had put $31 billion in savings on the table.
Charging infrastructure
The Coalition’s pledge comes as electric vehicle sales increased in Australia, with EVs outselling petrol and diesel vehicles in new vehicle sales over the past two months according to Commonwealth Bank.
The increase in sales has left motorists calling for more infrastructure to support the changing driving landscape.
Cash did not commit to any additional spending on charging stations, instead reiterating the party’s focus on savings.
“We are looking at savings here. And one of the ways you make savings is to scrap the $2.1 billion expensive subsidy,” she said.
“Australians can buy any car they like but the Australian taxpayer, doing it tough under this government, shouldn’t have to subsidise that.”
‘This is a cost of living measure’
Environment and Water Minister Murray Watt defended Labor’s approach, arguing the government had already adjusted the scheme to reduce the discount available for more expensive electric vehicles.
“It’s worth remembering that since we’ve been in office, we have found about $180 billion worth of savings,” Watt said.
“It’s not as if we’ve done nothing on that front.”
Watt said the government believed the current settings struck the right balance between supporting the transition to electric vehicles and easing pressure on household budgets.
“This isn’t just about reducing emissions and the environmental benefits that come from EVs,” he said.
“It’s actually helping Australians right now to deal with the kind of higher fuel prices that we’re seeing as a result of the Middle East conflict.
“This is a cost of living measure as much as it’s an environmental measure.”
Under the current arrangements, vehicles priced below $91,000 receive the full tax exemption, with the threshold set to fall to $75,000 from April next year.
Watt rejected suggestions the subsidy primarily benefited wealthy Australians, arguing vehicles were being used by drivers in outer suburbs who could save money on fuel through longer commutes.
