The 2024-25 Federal Budget was handed down tonight, headlined by measures such as energy bill relief and rent assistance to tackle the cost of living crisis.
It also includes details about the ongoing cost of the New Vehicle Efficiency Standard (NVES) to Australian taxpayers.
Here’s a full breakdown of what in the 2024-25 Federal Budget impacts Australian motorists.
New emissions regulations
The Government says it will provide $154.5 million over six years from 2023-24, and $12.6 million per year ongoing, to implement the New Vehicle Efficiency Standard (NVES).
This includes $84.5 million over this five-year period to establish a regulator to administer the NVES, which will capture emissions data, establish a credit trading platform, and undertake monitoring and compliance activities.
The $12.6 million annual spend beyond this five-year period will go towards funding this regulator.
It’s also spending $10 million in 2023-24 on a communications campaign on the NVES.
It expects the NVES to decrease fuel excise receipts by $470 million over four years from 2024-25.
Electric vehicles
The above mentioned costs of NVES implementation include $60 million earmarked for electric vehicle charging infrastructure at dealerships, redirected from the Powering Australia – Driving the Nation Fund.
The Government says it has also committed $27.7 million “to help Australians benefit from cheaper, cleaner energy sooner by supporting development of priority reforms to ensure consumer energy resources, such as rooftop solar, household batteries and electric vehicles, contribute to our grid”.
It doesn’t provide any detail as to how it plans to do this.
Roads
The Government has a $120 billion infrastructure investment pipeline, which includes not only road projects but also rail.
It plans to invest $4.1 billion over seven financial years from FY24-25 for 65 new priority infrastructure projects, including:
- $500 million for the Mamre Road Stage 2 upgrade in Western Sydney, NSW
- $400 million for the Elizabeth Drive priority sections upgrade in Western Sydney, NSW
- $72 million for Port Keats Road in the Northern Territory
- $64 million for the Berrimah Road duplication project in the Northern Territory
- $134.5 million for the Mt Crosby Road interchange upgrade in Queensland
- $42.5 million for the Bremer River Bridge (westbound) strengthening in Queensland
- $80 million for the Lyell Highway in Tasmania
- $17.6 million for various projects in Victoria
The Federal Government is also investing $54 million in a regional road safety program in Western Australia.
As part of a $10.1 billion investment over 11 years from 2023-24, the Government will invest $3.3 billion in Victoria’s North East Link, as well as:
- $578.6 million for New South Wales projects, including a $112 million extension of the M1
- $431.7 million for Queensland’s Coomera Connector Stage 1
- $133.6 million for various projects in South Australia, including $100 million for the South Eastern Freeway upgrade
- $113.1 million for projects in Tasmania, including $50 million for the Mornington Roundabout Upgrade
- $35.9 million for Northern Territory projects, including the $25 million Carpentaria Highway upgrade
- $27.1 million for the duplication of the ACT’s William Hovell Drive
It’s not just roads the Government is investing in, with some big ticket public transport projects as well – such as a $1.2 billion rail line from Brisbane to the Sunshine Coast in Queensland.
It plans to continue existing road maintenance and safety programs, reaching a spend of $1 billion in 2033-34 on the Roads to Recovery Program, $200 million on the Safer Local Roads and Infrastructure Program, and $150 million on the Black Spot Program.
It’s also investing $21.2 million over six years from 2024-25 to improve the National Road Safety Data Hub, and $10.8 million to fund a national education and awareness campaign in the next financial year.
Luxury Car Tax
The Luxury Car Tax (LCT) isn’t going anywhere.
The Government expects LCT revenue to drop by $180 million in the 2024-25 financial year, to $1.11bn. However, it expects this to rise each subsequent year, culminating in a $1.33bn haul in 2027-28 – an increase over current levels.
The Australian Automotive Dealer Association (AADA) has criticised the continued presence of the LCT, as well as the Passenger Vehicle Tariff, which combined will result in almost $1.7 billion of revenue this financial year.
“We consider these to be outdated taxes, which are a relic from an era when Australia manufactured vehicles here. Particularly the Luxury Car Tax which often applies to more efficient vehicles and applies to optional features which discourage consumer uptake of safety features,” said AADA CEO James Voortman.
