Popular large hybrid cars, such as the Mazda CX60 and Toyota Kluger, will be slugged with a 33 per cent “luxury” tax in a change the government hopes will aid the “transition away” from fossil fuels agreed to at COP28.
The Albanese government has slapped a 33 per cent “luxury” car tax on some popular hybrids, as they try to manage the “transition away” from fossil fuels agreed to at COP28.
Climate and Energy Minister Chris Bowen has spent the past week at the major summit, which had looked at risk of failing to produce significant progress on addressing concerns about environmental degradation.
However, on Wednesday evening representatives announced a final communique would express a directive to “transition away” from fossil fuels, including oil and gas under COP’s remit for the first time in its almost three decade history.
Countries agreed to “contribute to” global efforts to “transition away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net-zero by 2050 in keeping with the science”, an outcome which has been broadly welcomed by all parties.
United States climate envoy John Kerry hailed the outcome as “a clarion call to all of us about our obligations and responsibilities to make sure we’re reaching as far as we can to implement as fast as we can.”
“This document sends very strong messages to the world,” he said.
While some nations with more progressive stances on climate change were understood to be disappointed not to secure a “phasing out” of fossil fuels, it is understood they were accepting of the final wording in absence of an agreeable alternative.
Australia, meanwhile, was understood to have been a key backer of the “transition” wording, which mirrors a similar commitment agreed through last month’s Pacific Islands Forum.
On Monday, Mr Bowen had told media a strong wording was in the country’s best interests as it would create an “opportunity” for Australia to realise its potential as a renewable energy powerhouse.
The change will see the threshold for the higher tax lowered from seven litres per 100km to just 3.5 and is expected to generate $155 million over two years once the policy kicks in from July 1, 2025.
Industry groups have voiced concern, however, suggesting a tax on hybrid cars would send the wrong message to consumers and claiming the government is only introducing the change to increase its revenue.
Labor has also previously committed to introducing a fuel efficiency standard, but has declined to reveal details of the scheme due to concerns over the soaring cost of living.
Extracted in full from: https://www.skynews.com.au/australia-news/politics/government-slaps-vehicles-with-luxury-car-tax-in-bid-to-meet-emissions-target-as-world-agrees-to-transition-away-from-fossil-fuels/news-story/1063da2bf1b9934901259dfc1e30b1c8