A “CARBON tax” on cars that could push up the price of Australia’s most popular vehicles by more than $5000 has been proposed by the Turnbull Government.
The Daily Telegraph has obtained the Government’s proposal outlining emissions penalties to be slapped on car distributors who fail to meet new fuel efficiency targets.
Under the proposal, from 2022 new cars will be slapped with a surcharge of $100 for every gram of carbon per km they emit over a target figure and fail to offset.
Exclusive modelling by the Australian Automobile Association shows the changes would add $3925 to the price of a Toyota Accent.
Car distributors were shocked to receive the proposed model from the Department of Infrastructure and Regional Development’s Vehicle Emissions Team on Monday evening, describing it as more “extreme” than any measures discussed during 18 months of consultation.
“This would be one of the most extreme efficiency standards in the world and will lead to car prices going up and motorists having fewer cars to choose from,” Australian Automobile Association chief executive Michael Bradley said.
Peak industry body the Federal Chamber of Automotive Industries’ acting chief executive Tony McDonald said it would add “thousands of dollars in emissions penalties” to the current price of a car.
A spokesman for the Department of Infrastructure and Regional Development said the government had not made a decision on the proposal: “The Department of Infrastructure and Regional Development released the proposed model for consultation only.”
But facing a major political backlash last night, Prime Minister Malcolm Turnbull ruled out the tax. “The Government rules out introducing a carbon tax on the family car. Labor must now do the same,” a spokesman said. READ MORE Editorial: A carbon tax for cars that don’t meet new fuel standards
“We will encourage more efficient vehicles, which reduce fuel use and emissions. We are still consulting with industry and have a long way to go. The paper ... is merely a consultation paper designed to hear feedback from industry.”
