A plan to ban new petrol cars in the ACT by 2035 has raised concerns that the move will create some big problems for many residents.
In an Australian first, Canberra announced it will become the first jurisdiction to mandate that all new cars must be electric, with motorists set to be banned from purchasing new “fossil fuel” vehicles.
ACT Emissions Reduction Minister Shane Rattenbury said the rules will apply to new cars, motorcycles and small trucks.
“Our intent is that from 2035, you will not be able to put new [petrol cars] on the road,” he said.
“But the Government does not intend to take your car off the road if you’re driving around in an all-petrol vehicle at the start of the year.”
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By 2030, the ACT also wants 80 to 90 per cent of new light vehicles sold to be zero-emission models.
While there has been much support for the move, there are also some concerns.
The Australian Automotive Dealer Association (AADA), the peak body representing franchisee new car dealers, fears the cost of buying new electric vehicles will still be too high for many consumers by 2035.
“We have serious concerns that this policy will have adverse consequences for the automotive industry, the people they employ and consumers in the ACT,” AADA CEO James Voortman said.
“Electric vehicles are currently more expensive and at present, there is a distinct lack of choice in available makes and models. These factors may well change by 2035, but this ban has been foreshadowed in an environment where there is great uncertainty.”
Mr Voortman said the other “big risk” is that people may feel the need to hold on to older, more polluting cars for longer than they would under other circumstances.
There are already some monetary incentives in place to encourage people to purchase electric cars, with interest-free loans of up $15,000 in the ACT.
A person buying a Zero Emission Vehicle (ZEV) for the first time may not have to pay stamp duty and buying a new or used electric vehicle will result in two years’ free ACT vehicle registration.
Prime Minister Anthony Albanese has also offered incentives for Australians to buy electric, with the vehicles set to be exempt from a 5 per cent import tariff that will reduce the cost of a $40,000 vehicle by $2000.
They will also be exempt from fringe benefits tax which will encourage workplaces to give their employees electric cars.
Despite this, Mr Voortman said there are still issues with the plan, questioning how the ACT will enforce it.
“It is unclear how the ACT will enforce this ban and prevent consumers from simply purchasing an internal combustion engine (ICE) vehicle across the border and re-registering it here as a used car,” he said.
Mr Voortman claimed rather than this “crude ban”, the Government would be better off putting technology-agnostic CO2 standard in place so manufacturers understand what emissions goals they need to achieve.
He said doing this would allow manufacturers the freedom to deploy technology to achieve this goal.
“The transition to low emissions vehicles will have major consequences for Canberrans and all Australians and it is critical that we develop a national strategy to facilitate the transition,” he said.
“This is another example of why the transition to low emissions vehicles should be led by the Federal Government, which controls the importation of new vehicles into the Australian market.”
Mr Voortman added: “Disappointingly, there has been no consultation on this major change and automotive businesses in the ACT are left scratching their heads and asking what the future holds for them.”
Other states and territories are expected to follow Canberra’s lead in the coming years.
Mr Rattenbury said while all of the details had not yet been finalised, the ACT Government wanted to send motorists a clear signal of the direction the it was taking.
“We’re trying to signal where we are going very early so that people have a clear understanding of where the future lies,” he said.
- news.com.au