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Darren Chester warns Labor's new car tax will hit Gippsland families, hikes cost of utes, SUVs, four-wheel-drives, vehicles

Darren Chester says Labor's new car tax will unfairly increase costs for Gippsland families, utes, SUVs and four-wheel-drives, worsening the cost-of-living crisis and limiting vehicle choices for regional communities.

By news@gippsland - 10th July 2025 - Back to News

Gippslanders will be paying more for their favourite cars with the commencement of the Albanese Labor government's unfair tax on four-wheel-drives, SUVs and larger family vehicles. Federal MP Darren Chester said from July 1, Gippsland families and small businesses will start paying Labor's tax every time they buy a new car, which will add up to $17,000 to the cost of new petrol and diesel-fuelled cars by 2029.

Federal Member for Gippsland Darren Chester says Gippslanders will be paying thousands more for 4WDs and SUVs under the Albanese government's new taxes, which came into effect on July 1

Unfair car tax

Mr Chester said, "This is an unfair Labor tax on Gippsland families in the midst of a cost-of-living crisis, who need to buy a larger vehicle to meet their needs, or local small businesses looking to invest in a new car to grow their business. The Albanese government's car and ute tax will drive up the price of new and second-hand cars and make life harder for Gippsland families to get the vehicles they need."

"Not only does Labor's new tax reduce the choice for Gippsland families and businesses who don't want to purchase an EV, but unfairly and significantly impacts those in regional and rural regions by taxing those who can't purchase an EV due to the limited charging infrastructure and range limitations."

"There will be perverse impacts of Labor making new cars more expensive to buy, with many people likely to keep their current car on the road for longer, resulting in older, less efficient and less safe cars on our streets and highways than might otherwise have been the case," Mr Chester said.

Unfair vehicle inequity

Mr Chester said Labor's new car and ute tax will further entrench the tax inequity between those who can afford to buy, or are given a company car to drive, and those forced by work, location or circumstance to use petrol, diesel and hybrid cars.

"EV drivers are able to opt out of paying fuel excise used to fix and maintain the roads they drive on, while everyone else is taxed when they fill up at the bowser as well as hit with Labor's hefty tax when they buy a new car. Labor's tax is estimated to add up to $7,400 to the cost of a Ford Ranger in 2026 and up to $14,400 by 2029."

"The popular RAV4 hybrid family vehicle will incur almost $5,000 additional cost by 2029 as a result of Labor's tax. The Coalition opposed Labor's car and ute tax because we know Australians do not want the government in Canberra dictating what vehicles they should buy," Mr Chester said.

Pictures from Darren Chester MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com