Concerns over CCD timescale
The Imported Motor Vehicle Industry Association (VIA) is disappointed so little lead time is being provided by the government for its changes to the clean car discount (CCD).
Michael Wood, Minister of Transport, has announced that rebates will only apply for light vehicles emitting less than 100g of carbon dioxide (CO2) per kilometre instead of the current 146g.
The changes, which will come into effect form July 1, mean the discount for those emitting up to 100gCO2/km will reduce by about $1,500 to $1,750 for new vehicles and by $200 to $500 for used imports.
David Vinsen, VIA’s chief executive, says: “These changes are not unexpected because we always knew from the start that the scheme would run out of money.”
He recalls a discussion in February 2018 with the Greens’ Julie Anne Genter, who was Associate Minister of Transport at the time, and raising that very issue during their conversation.
Vinsen, pictured, notes the CCD’s current funding shortfall has been exacerbated by the government offering rebates for battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) in July 2021 ahead of the launch of the full clean car discount scheme, which included the fees on higher emitting models – such as utes – in April 2022.
This effectively meant the government was paying out under the feebate scheme without any money coming into its coffers for eight months, which is a reason why it has failed to be fiscally neutral.
As for the changes to the scheme announced by Wood on May 2, Vinsen says VIA – as a member of the low-emissions vehicles group – has been in contact with the Ministry of Transport (MoT) for about the past three months over how the CCD could be tweaked and the association made suggestions as part of the review process.
“There is insufficient lead time for the changes, which is going to cause disruption on the demand side, and this will not be the first tweak they have to do,” warns Vinsen.
“The NZTA is working flat out to develop the revised calculations. We’ve been working with the MoT on the revisions and the NZTA for the implementation, so this is another example of industry and officials working collaboratively even though there is short notice for these changes.”
Vinsen points out that most petrol hybrids will be excluded from the clean car discount once the changes kick in, even though they have the “greatest potential” because of stock availability.
“It appears the long-term aim is to get people out of privately owned and operated cars.”
Overall, VIA is disappointed with the timing of the changes because the industry needs plenty of notice so it can adjust to new policies and alterations to those that already exist.
Guide to CCD changes
• Rebates will only apply for light vehicles emitting less than 100gCO2/km instead of the current 146g.
• The rebate for used BEV imports will rise from $3,450 to $3,507 from July.
• The maximum rebate for new BEVs will drop from $8,625 to $7,015.
• Discounts for vehicles emitting up to 100gCO2/km will reduce by about $1,500 to $1,750 for new, and by $200 to $500 for used.
• The rebate will be $1,725 for a vehicle at 100g, plus $57.50 for each gram below 100g for new vehicles up to $4,025.
• Used imports will receive one half of the dollar amount of new.
• The threshold for all imports subject to penalty fees will drop from 192gCO2/km to 150g.
• A rebate for low-emissions disability vehicles will cover new and used imports. This will be $11,500 for a BEV, and $5,750 for a PHEV or petrol hybrid.
