Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Gallagher. The auto industry released modelling to show Labor's family car tax on SUVs, four-wheel drives and utes could impose penalties of up to $25,000 on the cost of a new car. For example, the RAV4 would be slugged up to $11,000 under Labor's car tax, and the Ford Ranger ute by nearly $18,000. During the middle of a cost-of-living crisis and high inflation, why is the government trying to force Australians who want or need an SUV or a four-wheel drive to pay more when buying their next family car?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well, I must say, there isn't a policy area with a fear campaign that the Liberal and National parties don't want to jump on board of and promote. Instead of working in the national interest, it's always about the scare campaign. It's always about misinformation. It's always about trying to drive fear and disunity against the need to make progress in relation to climate change. They will jump on everything they can and perpetuate these myths.

For the record, we are currently consulting on a New Vehicle Efficiency Standard. Here's a quote:

We've always been committed to getting fuel efficiency standards in place …

Who might have said that? Oh, Josh Frydenberg, Treasurer, April 2022! Here's another one. Let's play a game. Guess who said this:

So when fuel efficiency standards were introduced in the US—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

A point of order on relevance. I asked not about the fuel efficiency standard itself but about the industry modelling that says the cost of new family cars will be increased by significant amounts. Is industry right or not?

Sue Lines (President) Share this | Link to this | Hansard source

I will draw the minister back to your question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm just providing some context to that, President. I will come to the question. Guess who said this:

So when fuel efficiency standards were introduced in the US, the most popular models before introduction stayed the most popular models after introduction … what we'd call utes …There wasn't a material change in price and we don't expect that there would be a material change in price here.

That goes directly to your question. Who said that? The member for Bradfield! What happened to him? That's when those opposite used to believe in fuel efficiency standards.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

A point of order on direct relevance, Madam President. You did rule. The minister has gone nowhere near the cost increases on new cars that industry has made clear.

Sue Lines (President) Share this | Link to this | Hansard source

The minister is being directly relevant to your question. Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I went straight to that issue of price, Madam President. Here's another one:

Well, we are adopting increasing fuel efficiency standards and that's a good thing. I don't have a problem with that. We should be doing that, and the fleet should be progressively getting cleaner and a lower intensity of emissions.

Who might have said that? Was it someone on this side? It was Senator Sharma in February! Good on you, Senator Sharma, making sense and actually responding to the challenges, not just jumping on that fear campaign. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, a first supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Under Labor's proposed family car tax on SUVs, four-wheel drives and utes, the government proposes manufacturers of cars with high carbon emissions can purchase credits from manufacturers of EVs and low-emission cars. Minister, isn't it true that under Labor's proposed model there will be winners and losers, and the major beneficiaries who will reap the windfall will be Elon Musk's Tesla and the Chinese EV makers?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well—

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, you've asked your question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We are consulting on a policy now. We have three options, and feedback is being provided—and we've taken some of your feedback today, Senator McKenzie—until 4 March. What I would say is that Australia stands alone. We've been left by 10 years of inaction from your government, despite people supporting it. What's the other developed country that doesn't have fuel efficiency standards? Which is it? Oh, it's a country led by Vladimir Putin. Russia!

So what have you got against us trying to put in place standards that drive down the cost of fuel, make cars more efficient and ensure that people are paying less for the running of their cars? What does the National Party have against more efficiency and lower costs for people when running their cars? They're currently paying too much, and they shouldn't be.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Minister. The time for answering has expired. Senator McKenzie?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Minister, if the government's intention is to reduce carbon emissions in the vehicle fleet, why does the government's policy propose to punish popular hybrid cars, like the RAV4, the Corolla and the Yaris, with carbon penalties?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

This is not about 'punishing' particular vehicles.

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. Senator McKenzie, you've asked your question. Minister Gallagher, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

This is about putting in place a new vehicle standard that will allow Australians to have more choice and pay less for fuel. And Toyota has announced they're launching a new, fully-electric SUV—there we go!—the bZ4X, today. We welcome more choice for Australian consumers. Of course, if you want a petrol SUV, you will still be able to buy one. And we will continue working on the case, with a fuel efficiency standard.

But I say to the Liberal and National parties: stop the scare campaign. For once, act in the interests of consumers in this country, about getting access to choice, driving better vehicles into this country, encouraging greater fuel efficiency and lowering costs for drivers in this country. You should be getting behind this standard, just like Mr Fletcher, Senator Sharma and your former Treasurer, Mr Frydenberg.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Minister. The time for answering has expired. Senator Pratt.