Greenpeace Australia Pacific has today welcomed the Federal Government’s decision to tighten the criteria for cars to be considered a ‘fuel-efficient vehicle’ under the luxury car tax (LCT), a change which will mean Australians will no longer subsidise the purchase of expensive, petrol powered cars.

“This is an important step in the right direction for reducing emissions from transport, the third largest source of carbon pollution in Australia,” said Greenpeace Australia Pacific campaigner Joe Rafalowicz.

“It is ridiculous that a massive and polluting SUV which costs up to $89,300 is currently getting a tax break because of fuel efficiency rules that were established 15 years ago, before the wave of new, zero emission vehicles.

“Updating the standards for the definition of fuel-efficient vehicle makes total sense. The Australian government should not be giving tax handouts to polluting vehicles that lock motorists into ever-increasing fuel bills when there are more EVs than ever on offer.”

Toyota’s Kluger SUV is one of the vehicles that has been cited as being affected by the tax changes, however recent data has shown that the vehicles Toyota is sending Australia – alongside South Africa and Russia – are dirtier than every other country in the world.

“Australians should be outraged that we are still receiving amongst the dirtiest cars in the world from companies like Toyota.

“Toyota and the petrol car lobby, represented by the Federal Chamber of Automotive Industries, will fight tooth and nail to keep selling highly polluting vehicles, but they are living in a dream world if they think a predominantly petrol-powered hybrid vehicle which costs over $75,000 is somehow comparable in fuel efficiency to a fully electric car from companies like Toyota.

“A rapid shift to electric vehicles is essential to achieving Australia’s goal of net-zero emissions by 2050. By lowering the upfront cost and increasing the resale value of EVs compared to petrol vehicles, the government is making them more attractive and competitive for consumers and businesses,” Mr Rafalowicz added.

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