Drivers could pay more tax after electric car U-turn
The cost of buying an electric vehicle could rise by thousands of dollars for some motorists if fringe benefits tax rules are changed after the election.
Automotive groups warn drivers in outer metropolitan suburbs could be hit hardest by the change, which would raise transport costs for some while fuel tax cuts lowered costs for others.
The warnings come after the coalition revealed it planned to remove fringe benefits tax subsidies for low-emission vehicles if it won government, calling the tax policy "wasteful spending".
The policy change could save the government more than $3 billion, according to coalition figures.
But the change would raise costs for Australians buying electric vehicles by thousands of dollars each year, National Automotive Leasing and Salary Packaging Association chief executive Rohan Martin said.
Under the current policy, electric and hydrogen-powered vehicles do not attract fringe benefits tax if they fall under the luxury car tax threshold of $91,387 and are purchased through a salary packaging program.
"For an EV around the $45,000 mark, we estimate a worker would pay another $3500 per year without the exemption to own and operate that car," Mr Martin told AAP.
"If it was a $60,000 EV, such as a (BYD) Sealion 7, then it would be about $4700 more per annum without the exemption."
Rising costs would hit families in suburbs hardest, he said, as households with longer commutes, solar panels and off-street parking had proven most likely to use the tax exemption.
"It's average, everyday working Australians living in outer metropolitan suburbs that are the main beneficiaries of this existing policy and are the main users of this policy," Mr Martin said.
Coalition leader Peter Dutton denied plans to remove the tax exemption represented a change in policy as the party opposed its introduction in July 2022.
The federal opposition has also announced plans to cut fuel excise by 25 cents a litre for one year - at a cost of $6 billion - and remove penalties for car companies exceeding emissions limits under the New Vehicle Efficiency Standard.
The election policies would only lower transport costs for some motorists, Electric Vehicle Council chief executive Julie Delvecchio said, while punishing those who had invested in low-emission vehicles to cut pollution, fuel and maintenance costs.
"The FBT exemption passed by parliament has been highly effective," she said.
"Scrapping it now will drive up the cost of owning and running an EV for Australians and stall progress towards cleaner, cheaper-to-run transport."
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Perth Now
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- Perth Now
Pakistan nominates Trump for peace prize
US President Donald Trump says he 'should have gotten a Nobel peace prize four or five times'. (AP PHOTO) Credit: AAP Pakistan has called for US President Donald Trump to be awarded the Nobel Peace Prize in 2026. In a post on the social platform X the Pakistan government said Trump should given the award "in recognition of his decisive diplomatic intervention and pivotal leadership during the recent India-Pakistan crisis." Trump has repeatedly claimed credit for playing a substantial role in easing the conflict — despite Indian authorities disputing that. The post has attracted a barrage of commentary on X, with both supporters and detractors. The nomination came after Trump was asked Friday about the Nobel and said he should be awarded it for a variety of reasons. He cited his work on India and Pakistan and arranging a treaty he said would be signed on Monday to end hostilities between the Democratic Republic of the Congo and Rwanda. "I should have gotten it four or five times," the president said. "They won't give me a Nobel Peace Prize because they only give it to liberals."
The Advertiser
an hour ago
- The Advertiser
Workers' retirement nest eggs set for super boost
Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products." Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products." Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products." Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products."
The Advertiser
an hour ago
- The Advertiser
EU-Aust free trade deal: a "middle finger to Trump"
There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. "We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. "We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. "We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. "We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations.
