Drivers who purchase low emission vehicles in the ACT will be rewarded in a move designed to reduce greenhouse gas emissions from road traffic.
Mick Gentleman, Roads and Parking Minister announced changes to the ACT Government duty scheme at a time when the Abbott Federal Government’s Fuel Efficient Vehicle guide changes from a star rating to a carbon dioxide emission rating-meaning that the environmental credentials of cars, utilities and light commercial vehicles will be assessed based primarily on exhaust carbon dioxide emissions per kilometre driven.
New vehicles that emit up to 130g of carbon dioxide per kilometre will be given an “A” rating and will be free of duty. Those vehicles significantly above average in terms of environmental performance will be given a “B” rating and their owners will receive a 50% discount, whereas drivers of vehicles rated “C” or “D” will pay the same rate as in the previous scheme.
Second hand vehicles and motorcycles and other vehicles not included in the Green Vehicle Guide will continue to pay the same rate as a vehicle rated “C”. A vehicle rated “B” emitting 2200 kg of carbon dioxide emissions per year and consuming approximately $1260 worth of petrol would attract $215 of duty, whereas a “C” rated vehicle emitting 2700 kg of carbon dioxide emissions and consuming approximately $1537 of petrol would attract $989.70 of duty. These figures are based on the best selling new cars in the ACT in 2014-the Volkswagen Golf 1.4 Litre, the Toyota Corolla 1.5 Litre, the Subaru Forester 2.5 Litre and the Mitsubishi Triton 2.5 Litre diesel.
According to Minister Gentleman, the changes are intended to influence buyers’ purchasing decisions in favour of cars with lower emissions. The ACT was the only jurisdiction in Australia to have a differential duty scheme to incentivise the purchase of low emission vehicles, according to Gentleman.