Anthony Albanese has been criticized by economists for spending taxpayers’ money to subsidize Chinese electric cars when prices are already forecast to fall next year.
Despite Australia’s growing debt crisis, the Labor Party this week announced low-interest loans to buy an electric vehicle.
The policy would cover workers who earn less than $100,000 a year, meaning anyone earning less than the average full-time wage.
But taxpayer-subsidized loans would also be available to essential workers with six-figure salaries, including police officers, teachers, firefighters and nurses.
The government is providing $150 million to the Clean Energy Finance Corporation to provide interest on loans that are up to five percentage points lower than standard rates for personal loans.
This means someone could buy an electric car at an ultra-low interest rate of just 1.2 per cent compared to the Commonwealth Bank’s 6.2 per cent guaranteed loan rate for those buying an electric vehicle.
But China, the world’s largest electric vehicle maker, is expected to ship many more electric vehicles to Australia next year when US President-elect Donald Trump imposes his 60 percent tariff on Chinese products sold in the United States.
Daniel Wild, deputy chief executive of the Institute of Public Affairs think tank, criticized the government’s move and said taxpayers should not be subsidizing Chinese electric cars, which already dominate 80 per cent of Australia’s electric vehicle market.
Anthony Albanese has been criticized for wasting taxpayers’ money subsidizing Chinese electric cars when prices are already expected to fall next year anyway.
“In the midst of a cost of living crisis and with rising public debt, it is notable that the Albanian government is using our tax money to create an ideal dumping ground for cheap Chinese electric vehicles,” he told Daily Mail Australia.
“It is not the role of the federal government to encourage the sale of foreign-made products that flood our market.”
Energy and Climate Change Minister Chris Bowen argued the government policy would save electric vehicle buyers more than $8,000 on a $40,000 loan with a seven-year term.
“Only the Albanese Labor Government is ensuring more Australians can get behind the wheel of cheaper cars and start saving on their travel,” he said.
“Discount loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year.”
But Wild said the policy would overwhelmingly favor Chinese interests, as the best-selling Teslas are built in Shanghai, while BYD, GWM and Polestar are also made in China.
“The federal government’s climate and energy policies are a huge free shot for Chinese interests and put control of our energy and manufacturing future squarely in China’s hands,” he said.
‘Australians have every right to ask what are the subsidies they are being given to fund electric vehicles, as well as solar and wind turbines, really doing?
The policy would overwhelmingly favor Chinese interests considering Teslas sold in Australia are made in Shanghai, while BYD, GWM and Polestar also come from China.
Daniel Wild, deputy chief executive of the Institute of Public Affairs think tank, said taxpayers should not be subsidizing Chinese electric cars, which already dominate 80 per cent of Australia’s electric vehicle market.
“And that is a more expensive, less reliable energy system that is not in our national interest.”
But the Federal Chamber of Automotive Industries backed Labour’s policy, even though Tesla and Polestar withdrew from its membership in protest at claims it favored petrol and diesel carmakers.
CEO Tony Weber said: “Demand growth for battery electric vehicles is slowing in markets around the world as governments remove incentives and consumers face the reality of change, including vehicle prices. higher purchasing costs, availability of charging infrastructure and models that do the job. and recreation needs.’
A dozen Chinese car brands are expected to arrive in Australia over the next two years, including Zeekr, XPeng Motors, Volvo and Polestar owner Geely, Lynk and Co, Leapmotor, Jaecoo, Changan and Nio.
Chinese cars sold in Australia do not incur any import tariffs due to a 2015 free trade agreement.
US President Joe Biden’s administration has been considering banning Chinese connected car technology this year on national security grounds.
The Albanian government’s policy was announced on Thursday, a day after the Treasury’s Mid-Year Economic and Fiscal Outlook revealed that gross public debt levels would surpass the trillion-dollar mark in 2025-26, which would represent the 36 percent of gross domestic product.
Australia has also committed to reducing carbon emissions by 43 per cent by 2030, and diesel-powered utility vehicles and four-wheel drive vehicles continue to dominate sales charts.