Opposition leader Peter Dutton said: “This is a tax on families who need a reliable car and small businesses trying to grow. Instead of making life easier, Labor is making it harder and more expensive.”

In 2019, the Coalition ran a campaign critical of electric vehicles, with then small business minister Michaelia Cash pledging to “save our utes”.

Opposition leader Peter Dutton has warned US President Donald Trump’s tariff trade creates uncertainty for the automotive sector and may cost voters. Source: AAP / Lukas Coch

The Opposition says it will maintain Labor’s standards to continue to incentivise manufacturers to produce cleaner vehicles.

“We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050, but forcing unfair penalties on car makers and consumers is not the answer.”

PM labels changes ‘nonsensical’ as industry responds

Albanese said the policy had been designed with consultation from manufacturers, saying before the laws were passed, the only nations without such standards were Australia and Russia.

“Scrapping fines takes us back to the bad old days we left firmly in the rear-view mirror where Australia, alongside Russia, was a dumping ground for the world’s unwanted, fuel-guzzling, inefficient cars.”