Thursday, June 13, 2024

Govt u-turn on ‘ute tax’

The Government has passed legislation repealing the ‘Ute Tax’ and Clean Car Discount for all vehicles registered after 31 December 2023.

“The National-ACT coalition agreement made scrapping the ‘Ute Tax’ a priority of our 100-day plan and we are making good on that promise,” said Transport Minister, Simeon Brown.

“The previous government’s scheme, which provided subsidies for people purchasing electric vehicles while taxing hardworking farmers and tradies who have little choice about the type of vehicle they need for work, is inequitable and fiscally irresponsible.

“Many drivers who need utes for work can’t avoid charges under the scheme as there are few viable alternatives that meet their needs.

“The scheme was supposed to be fiscally neutral, with the ‘Ute Tax’ charges covering the rebates and administration costs. However, more has been paid out in rebates than has been received in charges, and this is only set to get worse, with more taxpayer money likely needed to keep the scheme afloat.”

More than $579 million has been paid out in rebates and $13.5 million spent in administration costs, while only $290 million has been collected in charges, the Minister said.

“This has left taxpayers facing a $302.5 million deficit. Our coalition government is committed to increasing the uptake of electric vehicle ownership by supercharging EV charging infrastructure. We will deliver a comprehensive, nationwide network of 10,000 public EV chargers by 2030, while considering robust cost/benefit analysis.”

The repeal of the Clean Car Discount scheme applies to all vehicles registered from 11.59pm on 31 December 2023. Rebate applications will close at the same time. 

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