Government shakes up Clean Car Discount scheme
The Government is changing the Clean Car programme to increase fees slapped on higher emitting vehicles, changing the rebates for zero emissions imports and lowering the threshold for eligible vehicles. The changes come as the scheme was successfully exceeding industry and government projections, Transport Minister Michael Wood said, after it was reviewed a year into its full implementation . He said 20% of all new passenger car sales were electric last year, up from 8% in 2021. As planned we are further targeting the scheme to maintain its success and ensure it will be self-funding until its next review, he said. READ MORE: * Has the Clean Car Discount been a success or a failure? * Parliament passes law to slash road user charges cut by at least $27 * The Clean Car Programme - what you need to know The Government also had to increase the Clean Car Discounts repayable Crown grant by $100 million in Budget 2023. Motoring NZ reported earlier this month there was $98 million of funding left, as income from the fees was lower than the rebate payouts. Wood said the changes to the scheme included narrowing the focus to more fuel efficient vehicles earlier than planned. That means the threshold for a rebate would be lowered for new and used cars that emit from 146 grams of CO2 per kilometre down to 100 grams of CO2/km. This will include battery electric vehicles and plug-in hybrids, Wood said. The rebate for used EV imports will also increase, meaning New Zealanders will save up to $3507 per vehicle, helping many low and middle income New Zealanders get into lower emitting vehicles they otherwise couldnt afford, Wood said. That was up from $3450. To fund the changes, Wood said the charges placed on high emitting vehicles would change, lowering the threshold so vehicles that emit 150g of CO2/km or more would face a fee, down from the original level of 192g of CO2/km. The scheme is also now forecast to reduce emissions by 3.4 million tonnes by 2035, Wood said. The scheme has come under scrutiny by the Opposition, with Nationals transport spokesperson Simeon Brown saying Labours announcement that they are increasing the Ute Tax to pay for wealthy Kiwis to continue to get subsidies for Teslas is a kick in the guts for Kiwi farmers and tradies. These changes have come about because of the failure of Labours Clean Car Discount scheme having spent over $200 million more in subsidies than it took in taxes. Tens of millions of dollars in subsidies has been handed out to wealthy people buying Teslas, using money paid for by farmers and tradies that have been working hard keeping our economy moving. Now those farmers and tradies will have to pay even more for Labours failed policies with higher penalties on utes and light commercial vehicles. Brown said National would axe the discount scheme, end subsidies for people buying Teslas and work with the vehicle importation industry to put in place sensible long term policies which reduce our emissions while allowing kiwis to continue getting the vehicles they need. ACT also committed to repealing the Clean Car Discount. Other changes included special rebates for new and used low emission disability vehicles introduced to the fleet.