Opposition Leader Peter Dutton has pledged that a Coalition government will scrap penalties on new car models that do not meet fuel efficiency standards set by the government.
Under current plans put in place by Labor, starting in July, new cars failing to meet the emissions criteria of the New Vehicle Efficiency Standard (NVES) will face heavy penalties.
This standard is a central part of the government’s mission to reach net zero by 2050.
However, Dutton says if a Coalition government is elected in May, the standards set by the NVES will remain, but penalties for not adhering to the guidelines will be put on the scrap heap.
“This is a tax on families who need a reliable car and small businesses trying to grow,” he said.
“Instead of making life easier, Labor is making it harder and more expensive.
“A Coalition government will scrap this tax, so Australians can keep more of their hard-earned money when purchasing a new car.”
The adoption of the NVES by the government and the Coalition’s plan not to introduce fees for breaching compliance have drawn commentary from both sides of the fence.
Public Not Ready to Switch
Despite improved growth in overall vehicle sales during the year, the public was still not ready for a massive leap into electric vehicles(EVs).Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber voiced concerns about the public’s readiness to fully embrace EVs, noting that, in March 2025, EVs made up just 4.9 percent of vehicle sales, a drop from 9.5 percent in March 2024 and 6.8 percent in March 2023.
“We are at a critical point in transitioning to a lower-emission vehicle fleet,” Weber said.
“But the reality is clear, Australian families and businesses are not shifting in large numbers to EVs.
“While the supply of EVs is increasing, now with 89 models available in Australia, the demand for EVs is weak.”
He said Australian consumers were following the same pattern as other advanced markets globally where a small section of “early adopters” were getting in on EVs but remaining buyers had not shown interest.
“The Australian automotive industry has long advocated for an ambitious and achievable emissions standard,” he said.
Push for EVs
On the other side of the debate, groups including the Climate Council, Australian Conservation Foundation, Greenpeace Australia, and Australian Electric Vehicle Association have been critical of the Coalition’s plan to scrap NVES penalties.“To remove fines from the (standard) is a bit like having a speed limit with the speed cameras turned off,” Electric Vehicle Council chief executive Julie Delvecchio said.
“No penalties means fewer fuel-efficient vehicles and higher running costs.”
Greenpeace Australia Pacific climate and energy head Joe Rafalowicz claimed the policy would effectively sabotage Australia’s place on the global EV playing field.
