Goodbye Ute Tax

The ‘Ute Tax’ and applications for the Clean Car Discount ended for all vehicles on 31 December 2023, which a local farmer says is a victory for taxpayers, farmers, and tradies.

Squashing the ‘Ute Tax’ legislation was one of Federated Farmers’ 12 policy priorities for restoring farmer confidence.

“Getting rid of the Ute Tax was a promise from National at the election so it’s good to see that the Minister of Transport followed through on this,” Murchison dairy farmer and Nelson Federated Farmer president Stephen Todd says.

“With legislation like the Ute Tax farmers and growers weren’t feeling supported by the last Government, this is a step in the right direction however it is the first of many election promises and Federated Farmers will be looking to the government to make sure they follow through on all of their promised actions to restore confidence and get rural industries humming.”

Transport Minister Simeon Brown says that scrapping the ‘Ute Tax’ as part of the National-ACT coalition agreement was a priority in their 100-day plan.

“We have delivered on that commitment. The days of unfairly taxing our farmers and tradies are now behind us.

“The previous government’s scheme was inequitable and fiscally irresponsible, offering subsidies to individuals buying electric vehicles while imposing taxes on hardworking farmers and tradies who have little choice about the type of vehicle they need for work.

“The scheme was designed to achieve fiscal neutrality, with the ‘Ute Tax’ charges covering the rebates and administration costs. However, more was paid out in rebates than was received in charges, with taxpayers footing the bill.

“Our Coalition Government is committed to increasing the uptake of electric vehicle ownership by supercharging EV charging infrastructure, which is one of the most significant barriers for people taking up an EV. This will have a much more long-term impact rather than the former Government’s subsidy scheme.”