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Ballarat residents to be hit hard by Labor’s family car tax

Joint media release

Shadow Minister for Infrastructure, Transport and Regional Development, Senator the Hon Bridget McKenzie
Shadow Minister for Climate Change and Energy, Ted O’Brien MP
Shadow Minister for Education, Senator for Victoria, Senator the Hon Sarah Henderson

The price of Australians’ favourite SUVs, utes and 4WDs will be jacked up by thousands of dollars under Labor’s proposed carbon tax on vehicles.

Industry analysis of Labor’s family car tax predicts the cost of some popular models such as the Toyota Landcruiser could rise by as much as $25,000.

Senator for Victoria, Sarah Henderson, said Labor’s newest tax will put too many cars out of reach of the average family budget in Ballarat and across regional Victoria.

“The Albanese Labor government is tone-deaf to the cost-of-living crisis so many are facing. Yet, in another dirty deal with the Greens, Labor is going to hit Australians’ favourite family cars and utes with a great big tax,” Senator Henderson said.

“If you’re a tradie and you’re buying vehicles such as a BT-50 or a D-Max or a HiLux or a Ranger, the Albanese Government’s family car tax is going to drive up the cost by thousands of dollars.

“Labor’s family car tax will reduce the choice of vehicles available to locals in Ballarat, force up the price of Australia’s top-selling cars and put local jobs at risk as manufacturers threaten to pull out of the market.”

“This is another example of Ballarat MP Catherine King turning her back on the community she is meant to represent,” Senator Henderson said.

Victoria’s three favourite vehicles in 2023 were the Ford Ranger, the Toyota HiLux, and the Isuzu D-Max, which will each incur a penalty of $17,950, $14,490, and $13,830 respectively under Labor’s proposed tax.

Australia’s top three best-selling vehicles in 2023 face a carbon penalty of up to $17,950 for the Ford Ranger, $14,490 for the Toyota Hi-lux and $13,830 for the Isuzu D-Max respectively by 2029.

Labor’s family car and ute tax will threaten 16,525 local jobs across Victoria which will have a disastrous impact on the dozens of local dealerships in the Ballarat electorate.

In Ballarat today, Peter King who runs the Kings Cars group with dealerships in Ballarat, Geelong and Ararat said: “The Labor government is attacking the car industry and bullying people into buying cars they don’t want. This will have devastating consequences for car dealerships in Ballarat and across regional Victoria, and will force some businesses to close.”

Shadow Minister for Transport, Senator Bridget McKenzie said Labor is ignoring reality by hanging on to its claim that the policy will result in lower running costs for new cars.

“In New Zealand, we saw a similar tax drive up the cost of a car by about NZ$7,000. A punitive tax is not the right way to push people towards EVs that are still not affordable or practical for many Australians,” Senator McKenzie said.

“A cleaner and more efficient transport fleet is an important part of reducing emissions, but by Labor making new cars more expensive to buy, many Australians will keep their current car for longer, or choose a second-hand car, resulting in an older and less efficient national fleet.”

Shadow Minister for Climate Change and Energy, Ted O’Brien said Labor’s family car tax would punish everyday Australians for choosing to drive the cars they need and love.

“Australians are already suffering under Labor’s cost of living crisis and cannot handle yet another hit to the hip pocket, from this detached and reckless Labor government,” Mr O’Brien said.

“The Coalition is willing to engage on emissions reduction measures but we do not support policies that fail to strike a balance between getting emissions down, minimising costs and maximising choice for all Australians.”

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