Dutton reverses pledge on EV tax break, confirms Coalition would scrap 20% student loan cuts
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The news: Opposition Leader Peter Dutton has backflipped on a policy commitment he had made just two days earlier on electric vehicle tax breaks, a second major policy reversal by the Coalition since the election campaign began.
The context: In 2022 Labor introduced a scheme to allow drivers to deduct the cost of an electric vehicle worth up to $91,387 from fringe benefits tax when the car is bought on a novated lease. The scheme can save car owners tens of thousands of dollars over a number of years and has proven to be extremely popular.
When Dutton was asked on Monday if he would repeal the discount for EVs if he became PM he said, “we don’t have any proposals to change those settings.” Dutton made the statement despite the Coalition voting against the scheme in Parliament.
According to media reports, a statement issued on Wednesday afternoon saw the Opposition Leader backtrack on the commitment, stating he would scrap the tax break as the Coalition continues to look for budget savings.
Wednesday’s statement reads: “The Coalition will: unwind Labor’s taxpayer-funded and badly designed electric car subsidies, saving upwards of $3 billion over the forward estimates and $23 billion over the medium term.”
A source quoted by The Australian suggested that Dutton may have misheard the question on Monday.
Earlier in the campaign, the Coalition was forced to backtrack a highly controversial policy which it said would force all public servants back into he office full-time.
The Coalition also confirmed that it would not proceed with Labor’s $16 billion debt-reduction plan to reduce student debt by 20% under a Dutton government. The Liberal party said on Wednesday that it would scrap the policy as a savings measure, having previously criticised the scheme as "elitist" and "profoundly unfair" on those without student loans.
The sources: ABC, The Australian
