The tax will be terminated for all vehicles registered after 31 December 2023
In a move that marked a New Year's win for taxpayers, farmers, and tradies, the Coalition Government has officially terminated the controversial "Ute Tax" and Clean Car Discount for all vehicles registered after 31 December 2023.
Transport Minister Simeon Brown, a key figure in the National-ACT coalition agreement, expressed satisfaction with the achievement, stating, "Scrapping the 'Ute Tax' as part of the National-ACT coalition agreement was a priority in our 100-day plan, and we have delivered on that commitment. The days of unfairly taxing our farmers and tradies are now behind us."
When the Clean Car Discount was initially introduced in July 2021, a major worry revolved around the fees imposed on vehicles such as utes, where hybrid or electric alternatives are scarce or virtually nonexistent. This is why it earned the moniker "ute tax."
The decision to end the "Ute Tax" and Clean Car Discount comes as a response to what Brown deemed an "inequitable and fiscally irresponsible" scheme from the previous government. Under this scheme, subsidies were granted to individuals purchasing electric vehicles, while taxes were imposed on hardworking farmers and tradies who often had limited options for work vehicles.
"Many drivers who need utes for work can't avoid charges under the scheme as there are few viable alternatives that meet their needs," added Brown.
Brown highlighted the financial shortcomings of the scheme, noting, "The scheme was designed to achieve fiscal neutrality, with the 'Ute Tax' charges covering the rebates and administration costs. However, more was paid out in rebates than was received in charges, with taxpayers footing the bill."
Looking ahead, the Coalition Government aims to boost the adoption of electric vehicles by enhancing EV charging infrastructure. Brown emphasised that this strategic approach would have a more substantial and lasting impact than the former government's subsidy scheme.
The "Ute Tax" and Clean Car Discount was terminated as of 11:59 pm on 31 December 2023. It applies to all vehicles registered from that point onward.
