Published On: Wed, Apr 23rd, 2025

Peter Dutton and Coalition backflip on pledge to keep tax break for electric vehicles


Peter Dutton has backflipped on a policy announcement for the second time this federal election campaign, announcing the Coalition will scrap a tax break for motorists who buy electric vehicles in an apparent move to find savings to fund its promised increase in defence spending.

On Monday, the opposition leader was asked if he had any plans to remove Labor’s fringe benefits tax exemption for people who buy an EV priced at less than $91,000 through a novated lease.

“No, we’ve said that what we’re opposed to is the government’s big tax on hybrids,” he told reporters in Melbourne two days ago.

the Liberal Party said it would get rid of the EV tax concession if it wins government at next Saturday’s election. (Getty Images/iStockphoto)

“I want people to have choice.

“If people want to buy an EV, that’s fantastic. If they want to buy a Ford Ranger or a Toyota Hilux or whatever it might be, that is a choice that they should have.”

However, in a press release attributed to Dutton, Shadow Treasurer Angus Taylor and Coalition finance spokesperson Jane Hume today, the Liberal Party said it would get rid of the EV tax concession if it wins government at next Saturday’s election.

“The Coalition will: unwind Labor’s taxpayer-funded and badly designed electric car subsidies,” the release states.

It adds the move will save “upwards of $3 billion over the forward estimates and $23 billion over the medium term”.

It is the second time this campaign that the opposition has backflipped on a policy, following Dutton’s U-turn on forcing public servants back to the office little more than a week after the election was called.

2025 Federal Election. Easter Monday. Opposition leader Peter Dutton visited locals of Carrum Downs for a crime prevention round table at the Lyrebird Community Centre in Carrum Downs in the electorate of Dunkley with Liberal candidate for Dunkley Nathan Conroy and Liberal Senator James Paterson.. Monday 21st April 2025. Photo: James Brickwood. SMH NEWS 250421. Post meeting press conference
Peter Dutton has backflipped on a policy announcement for the second time this federal election campaign (James Brickwood)

The announcement came on the same day Dutton announced a $21 billion funding injection for the Defence Force by 2030, pledging to bring overall military spending up to 3 per cent of GDP within 10 years.

Labor attacked the opposition for failing to reveal where that funding would come from.

“There’s no explanation of how they’re paying for this, where the money’s coming from,” Defence Minister and Deputy Prime Minister Richard Marles said.

Both Labor and the Coalition are expected to release their election costings next week.



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