Carbon Tax on Cars


When a Federal Government minister flatly denies a new carbon tax is being proposed for cars you know there’s a fairly strong chance they are considering just that.

It’s called `kite flying’ and is designed to test the public’s appetite for any possible proposal from the government that might lose them votes.


If there’s plenty of push back, the proposal goes on the back burner.

If there isn’t much push back, it moves up the ladder for more serious consideration.

There was a bit of push back when a new car carbon tax proposal came to light last week prompting a flat denial from Energy and Environment minister Josh Frydenberg.

But he conceded a report had been made by another Federal Government Department on improving fuel efficiency in new cars.


What the report said possibly had weight because some new cars sold here aren’t as fuel efficient as the same models sold overseas. But that could come down to the fact that our baseline fuel,`regular unleaded’ called 91, doesn’t allow a petrol car engine to operate at peak efficiency.

In Europe, the octane rating for fuel is generally higher which means a car can more easily achieve optimal efficiency.


Whatever…. the writing is on the wall for whoever forms future federal governments to go for the jugular and impose yet another tax on car owners who already pay a heavy excise component on every litre of fuel along with stamp duties, luxury car taxes, fringe benefits taxes and other imposts.

One wonders what governments would do if there weren’t any cars or only electric cars (which still contribute to carbon emissions)… have a walking tax perhaps.

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