Government cries foul on 'carbon tax' for cars

The federal government's Minister for the Environment and Energy has taken all the hot air out of reports that new-car buyers will have to pay a carbon tax from 2022.

"There is as much chance of a carbon tax on cars as Elvis making a come-back," Josh Frydenberg told the ABC yesterday, a remark that was subsequently turned against him by Adam Bandt of the Greens.

Frydenberg's remarks should not, however, be construed to mean that the government is content with the automotive industry going on its merry way without fuel efficiency standards. The minister's frustration with the reporting is based around the use of the pejorative term, 'carbon tax', and any suggestion the government has accepted and will implement a proposal by the Department of Infrastructure and Regional Development (DIRD) that corporate average fleet emissions be capped at 105g/km – and companies unable to comply will be penalised.

"The only thing the government is interested in is how do we reduce the fuel costs for families, on their vehicles. There's been consultation going back as far as October 2015 on fuel efficiency standards, and the government has made no decisions on the policy to go forward in this particular area," Frydenberg said.

The remarks have been echoed by the Australian Automobile Association. A spokesperson for the association informed motoring.com.au yesterday that while it acknowledges the need for cars to be cleaner, it's also holding to true to its position on cost to the consumer.

"The AAA sees clean cars as being good cars. We have always urged the Government to ensure its plan to reduce vehicle emissions will cost Australian families and businesses as little as possible."

The proposal by DIRD appears to have been formulated in a vacuum, without considering the cost implications for consumers – and therefore the political ramifications for government – although the Greens pointed out yesterday that lower fuel use associated with cleaner cars will help the consumer in the long run.

Nevertheless, the automotive industry has reacted badly to the proposal, as we reported yesterday.

Picture courtesy of Josh Frydenberg MP/Facebook