The Federal Chamber of Automotive Industries (FCAI) has outlined its submission to the Commonwealth Government’s Transport and Infrastructure Net Zero Consultation Roadmap, recommending an efficient mix of technology, taxation and infrastructure development.
According to FCAI Chief Executive Tony Weber, policy must look beyond just electrification of vehicles to include features like low-carbon fuels, implementation of an equitable road user charge, ongoing development and expansion of recharging infrastructure and elimination of taxes such as the luxury car tax.
“The introduction of the New Vehicle Efficiency Standard (NVES) provides industry with certainty regarding the expectations and ambitious targets of the Government,” Mr Weber said.
“However, this is not a ‘set and forget’ direction. There is a need to continue to focus on the broader enabling environment, and how can we reduce emissions in the existing fleet while the transition occurs.
“Policy that drives the supply of vehicles will struggle unless consumers become a part of the solution to achieve net zero emissions through effective and efficient levels of support and encouragement.”
Mr Weber says progressive taxation reform should be an integral part of the journey to net zero in Australia.
“Scrapping the luxury car tax, which is a tax on new vehicle technology, and extending the fringe-benefits tax exemption for plug-in hybrid could support EV adoption and are important measures to consider.
“An efficient and equitable road user charging framework can be considered as a replacement for a range of outdated and inefficient tax measures, while maintaining sustainable funding for roads and transport infrastructure into the future.”
The development of public and private electric vehicle recharging infrastructure remains a major priority and, while Mr Weber acknowledges the work being done by governments, he says more needs to be done.
“Governments understand the importance of the development and performance management of recharging infrastructure and significant investments are being made,” Mr Weber said.
“This is a good start but more needs to be done.
“There are big challenges ahead, particularly the roll out of infrastructure to regional and rural Australia. This is a complex piece of work that must be done in parallel with the capability and capacity of the electricity distribution network.”
While electrification is seen as the most obvious method of reducing vehicle emissions, FCAI believes that all relevant technologies must be considered as offering solutions to both new and existing vehicles in the Australian fleet.
“Australia is a nation with more than 21 million registered vehicles, which will take time to transition,” Mr Weber said.
“It may be possible to leverage Low Carbon Liquid Fuel solutions across the transport sector, and we should be considering policy outcomes that encourage production and supply opportunities.
“The key message is that multiple pathways will be required during the next decade and beyond to achieve the net zero emissions objectives of governments and industry.
“With this in mind, FCAI and its members will continue to engage constructively with all levels of government and industry partners to achieve a low emissions future while providing the best outcomes for Australian consumers,” he said.
A full version of the FCAI submission can be found here.
