National Australia Bank faces $130 million hit over payroll issues during the 2025 financial year, as it works to remediate underpaid staff
NAB on Monday announced a problem with its payroll systems had resulted in an undisclosed number of staffers being underpaid, forcing the bank to rectify the issue.
It warned operating expenses were expected to be 4.5 per cent higher in the 2025 financial year compared to FY24 due to the issue.
The problems reportedly relate to a series of staff benefits not being recognised such as overtime, penalty rates and long-service leave.
The bank noted NAB's financial hit could be higher than the $130 million it flagged as total costs remain uncertain.
The bank's group executive people and culture officer Sarah White apologised for the issue on Monday.
'Paying our colleagues correctly is an absolute priority,' Ms White said in a release to the ASX.
'We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted.'
The bank's chief executive Andrew Irvine similarly expressed concern about the payroll issue, labelling it 'disappointing' and saying it 'must be fixed'.
NAB said it has engaged with the Fair Work Ombudsman and the Finance Sector Union over the issue.
It has also begun a review of payroll benefits and is moving to a new platform for human resources and payroll issues.
NAB launched a review in 2019 over payroll issues that forced it to pay $250 million to staff between the 2020 and 2022 financial years.
Finance Sector Union national president Wendy Streets said the funds NAB has been forced to return to staffers over the past five years 'should never have been taken from workers in the first place'.
'At a time when Australians are struggling through the worst cost-of-living crisis in decades, this scale of underpayment is nothing short of systemic wage theft,' Ms Streets said in a statement.
'The Finance Sector Union (FSU) has met with NAB, expressing its disbelief that one of the nation's biggest banks has once again failed to pay its workers correctly.'
She said NAB needed to explain how the payroll issue happened and said the union will meet with the FSU to demand workers 'will never again be ripped off on this scale'.
NAB said the bank was transitioning to a new enterprise bargaining agreement in 2024.
The underpayment blow comes as it revealed earning of $1.77 billion for the final three months of the 2025 financial year.
NAB's share price is up almost 1.5 per cent as of 12.30pm on Monday.
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Sky News AU
an hour ago
- Sky News AU
'Set up for permanent disability': Health Minister Mark Butler promises to cut National Disability Insurance Scheme growth as autism surge fuels sustainability fears
Health Minister Mark Butler has promised to rein in the ballooning cost of the National Disability Insurance Scheme, warning its 'social licence' is under strain after figures revealed more than 70 per cent of new participants joined due to autism diagnoses. Health Minister Mark Butler has warned that the National Disability Insurance Scheme must be returned to its 'original purpose' and that its spending growth must be cut. Mr Butler affirmed the NDIS growth rate needs to be lower than the eight per cent target, after it previously grew by more than 20 per cent between 2020 and 2024. The NDIS was originally expected to peak at 4 per cent annual growth when the scheme was launched in 2013. However, since then, the NDIS has exploded, with new figures revealing more than 70 per cent of new participants have entered the scheme with an autism diagnosis. Speaking at the National Press Club, Mr Butler revealed that he did not believe children with 'moderate levels of developmental delay' should be on the scheme. 'The NDIS has grown incredibly fast and created new markets which have… sometimes distorted other parts of the health and social care ecosystem,' he said. 'Children with mild to moderate levels of developmental delay and autism should not, in my view, be on a scheme set up for permanent disability.' Mr Butler promised to revise the system and work towards whittling down its growth rate, in order to make the program more sustainable. 'After we achieve our current target set for next year, a further wave of reform will be needed to get growth down further to a more sustainable position,' he said. 'Growth should reflect unit price inflation plus growth in population. In nominal terms, that would hover around 4 per cent or 5 per cent. 'On top of that, we should allow an inflator that reflects the ageing of participants in the scheme, which might add up to another 1 per cent, taking us to around 5 per cent.' — Grattan Institute (@GrattanInst) June 29, 2025 Amid the ballooning cost of the NDIS – $52 billion in 2025, compared to $51 billion for national defence – Mr Butler warned its public support has come under pressure. 'Social licence is also particularly important to such a scheme. And right now, although that licence is still strong, I do worry that it's coming under pressure,' he said. 'Recent research by Talbot Mills found that 7 in 10 Australians do agree the NDIS plays a vital role in improving the lives of (disabled people). 'But 7 in 10 also agreed the NDIS has grown too large and is struggling with inefficiencies and dodgy providers. Fully 6 in 10 Australians agreed the NDIS is broken.' According to new data, 56,000 of the 78,600 people who signed up to the NDIS in the 12 months to June 2025 listed autism as their primary diagnosis. That figure accounted for 71 per cent of all new entrants, more than ten times higher than the next most common reason: developmental delay (5,553). The new figures bring the total number of NDIS participants with autism to 295,000, or nearly 40 per cent of the 749,000 people on the scheme. According to the Grattan Institute, 44 per cent of recipients are children diagnosed with autism or developmental conditions. Prime Minister Anthony Albanese has previously expressed his concern at the ballooning costs, saying he was 'not happy' with the state of the NDIS. 'We've been trying to … make the system more sustainable. It had been allowed to just drift over the three terms of the former government,' Mr Albanese said in July. 'The vision of the NDIS is a great one. It's one we should be really proud of as Australians. 'But we need to make sure that it is made more sustainable... The vision of the NDIS wasn't that those sort of numbers (of children) go on the system.' He also noted that 'massive rorts' in the system had inflated costs and pledged to continue a crackdown on fraudulent providers.
The Advertiser
an hour ago
- The Advertiser
Eight new books to add to your bedside table pile this week
Grant Dooley. Affirm Press. $36.99. Grant Dooley and his wife, Kristan, had barely settled into their diplomatic posting to Indonesia in 2004 when a bomb exploded outside the Australian embassy compound in Jakarta, killing 11 people. Dooley was one of the first responders. Two-and-a-half years later he was on the scene when Garuda flight 200 crashed in Yogyakarta, killing 20 people - five of them Australians. Dooley's description of running to the burning aircraft, hoping desperately to find friends and colleagues on board, is one of the most powerful scenes in a memoir that captures the emotional and psychological toll of his tumultuous time in Indonesia. Nicole Madigan. Pantera Press. $36.99. Investigative journalist Nicole Madigan's second work of non-fiction is an intimate exploration of why people choose to stay in toxic relationships and what drives them to leave. It tells the stories of four women who fought devastatingly hard for relationships that were tarnished by betrayal, hurt, lies and behaviours that fractured the foundation on which they were built. This is an impressive follow-up to 2023's Obsession: A journalist and victim-survivor's investigation into stalking. If you liked Three Women by Lisa Taddeo, Torn offers insights into the complexities of love, infidelity, addiction and grief. Tim Booth. Macmillan Australia. $36.99. Stories about the bizarre stuff medical professionals face in their daily lives are a rich seam well mined by doctors, nurses and paramedics. The latest collection comes from Tim Booth, who was a motoring journalist before he handed in his road-testing keys and became an intensive care paramedic. From the woman who called 000 because she had run out of milk to a dairy-related crisis of a more adult kind involving the illegal drug GHB and copious amounts of custard, Booth takes readers behind the scenes in the world of emergency medicine, with generous lashings of absurdity and dark humour. Stuart Mullins & Bill Hayes. Simon & Schuster. $36.99. It was a crime that changed post-war Australia. On Australia Day 1966 three children - Jane, Arnna and Grant Beaumont - went missing from Glenelg Beach in South Australia. They were never seen again. It was a story at least as seismic for generations of parents as the disappearance of Madeleine McCann in Portugal in 2007. The authors, one a writer and the other a former police detective, have years of experience with the case. They name the prime suspect in the mystery as a businessman who was considered a pillar of Adelaide society, but who in reality was a serial predator. Natalia Figueroa Barroso. UQP. $34.99. Uruguayan-Australian Natalia Figueroa Barroso's debut novel spans two continents and three generations of women. The stories of Gaciela, daughter Rita and aunt Chula explore the different perspectives of a family's migrant past through identity, nostalgia for one's origins and buried secrets. Taking place in Western Sydney, 1970s Uruguay and present-day Montevideo, the novel shows that though trauma can be generational, there are often ways to heal. The author attributes her writing inspiration for her novel to The Color Purple by Alice Walker, Dirt Poor Islanders by Winnie Dunn and Family Lore by Elizabeth Acevedo. Sophie Green. Hachette. $34.99. Sophie Green's latest novel is a cozy read that will make you want to curl up on the couch with the crew at the Seaside Salon, Trudy, Anna, Evie and Josie. The four women either work or are clients at the salon in a classic coastal town. We follow them in the winter months of the 1980s as they find love and friendship, sometimes in unexpected places. Green's characterisation brings you quickly onside while the insights into a hairdresser's careful negotiation with their clients makes you smile. Oceanforged: The Wicked Ship Amelia Mellor. Affirm Press. $16.99. This is the first instalment of a promised five-book fantasy adventure series from the author of historical fantasy trilogy The Grandest Bookshop in the World. Recommended for readers aged 8 to 12, Oceanforged follows 13-year-old Cori, who is fighting for her life aboard the pirate ship Harridan skippered by the fearsome Captain Scrimshaw. When a powerful gauntlet from an ancient magical suit of armour fuses itself to her arm, plucky Cori thinks it's her ticket to freedom but first she must learn about courage and resilience, helped by her new friends, Tarn and Jem, who have amazing skills of their own. Suzanne Do. Macmillan Australia. $34.99. Lili Berry's life in the charming coastal village of Swanning is upended by the death of her twin sister, Honey. Fuelled by grief, Lili strives to uncover the truth. Pete, who is haunted by the disappearance of his son 15 years ago, is the one who found Honey's body. He and Lili plunge headfirst into the dark secrets and lies of their not always close-knit community. This is the debut novel of former lawyer Suzanne Do, who with husband Anh Do co-wrote The Little Refugee, a children's version of his bestselling memoir, The Happiest Refugee, and the feature film Footy Legends. Grant Dooley. Affirm Press. $36.99. Grant Dooley and his wife, Kristan, had barely settled into their diplomatic posting to Indonesia in 2004 when a bomb exploded outside the Australian embassy compound in Jakarta, killing 11 people. Dooley was one of the first responders. Two-and-a-half years later he was on the scene when Garuda flight 200 crashed in Yogyakarta, killing 20 people - five of them Australians. Dooley's description of running to the burning aircraft, hoping desperately to find friends and colleagues on board, is one of the most powerful scenes in a memoir that captures the emotional and psychological toll of his tumultuous time in Indonesia. Nicole Madigan. Pantera Press. $36.99. Investigative journalist Nicole Madigan's second work of non-fiction is an intimate exploration of why people choose to stay in toxic relationships and what drives them to leave. It tells the stories of four women who fought devastatingly hard for relationships that were tarnished by betrayal, hurt, lies and behaviours that fractured the foundation on which they were built. This is an impressive follow-up to 2023's Obsession: A journalist and victim-survivor's investigation into stalking. If you liked Three Women by Lisa Taddeo, Torn offers insights into the complexities of love, infidelity, addiction and grief. Tim Booth. Macmillan Australia. $36.99. Stories about the bizarre stuff medical professionals face in their daily lives are a rich seam well mined by doctors, nurses and paramedics. The latest collection comes from Tim Booth, who was a motoring journalist before he handed in his road-testing keys and became an intensive care paramedic. From the woman who called 000 because she had run out of milk to a dairy-related crisis of a more adult kind involving the illegal drug GHB and copious amounts of custard, Booth takes readers behind the scenes in the world of emergency medicine, with generous lashings of absurdity and dark humour. Stuart Mullins & Bill Hayes. Simon & Schuster. $36.99. It was a crime that changed post-war Australia. On Australia Day 1966 three children - Jane, Arnna and Grant Beaumont - went missing from Glenelg Beach in South Australia. They were never seen again. It was a story at least as seismic for generations of parents as the disappearance of Madeleine McCann in Portugal in 2007. The authors, one a writer and the other a former police detective, have years of experience with the case. They name the prime suspect in the mystery as a businessman who was considered a pillar of Adelaide society, but who in reality was a serial predator. Natalia Figueroa Barroso. UQP. $34.99. Uruguayan-Australian Natalia Figueroa Barroso's debut novel spans two continents and three generations of women. The stories of Gaciela, daughter Rita and aunt Chula explore the different perspectives of a family's migrant past through identity, nostalgia for one's origins and buried secrets. Taking place in Western Sydney, 1970s Uruguay and present-day Montevideo, the novel shows that though trauma can be generational, there are often ways to heal. The author attributes her writing inspiration for her novel to The Color Purple by Alice Walker, Dirt Poor Islanders by Winnie Dunn and Family Lore by Elizabeth Acevedo. Sophie Green. Hachette. $34.99. Sophie Green's latest novel is a cozy read that will make you want to curl up on the couch with the crew at the Seaside Salon, Trudy, Anna, Evie and Josie. The four women either work or are clients at the salon in a classic coastal town. We follow them in the winter months of the 1980s as they find love and friendship, sometimes in unexpected places. Green's characterisation brings you quickly onside while the insights into a hairdresser's careful negotiation with their clients makes you smile. Oceanforged: The Wicked Ship Amelia Mellor. Affirm Press. $16.99. This is the first instalment of a promised five-book fantasy adventure series from the author of historical fantasy trilogy The Grandest Bookshop in the World. Recommended for readers aged 8 to 12, Oceanforged follows 13-year-old Cori, who is fighting for her life aboard the pirate ship Harridan skippered by the fearsome Captain Scrimshaw. When a powerful gauntlet from an ancient magical suit of armour fuses itself to her arm, plucky Cori thinks it's her ticket to freedom but first she must learn about courage and resilience, helped by her new friends, Tarn and Jem, who have amazing skills of their own. Suzanne Do. Macmillan Australia. $34.99. Lili Berry's life in the charming coastal village of Swanning is upended by the death of her twin sister, Honey. Fuelled by grief, Lili strives to uncover the truth. Pete, who is haunted by the disappearance of his son 15 years ago, is the one who found Honey's body. He and Lili plunge headfirst into the dark secrets and lies of their not always close-knit community. This is the debut novel of former lawyer Suzanne Do, who with husband Anh Do co-wrote The Little Refugee, a children's version of his bestselling memoir, The Happiest Refugee, and the feature film Footy Legends. Grant Dooley. Affirm Press. $36.99. Grant Dooley and his wife, Kristan, had barely settled into their diplomatic posting to Indonesia in 2004 when a bomb exploded outside the Australian embassy compound in Jakarta, killing 11 people. Dooley was one of the first responders. Two-and-a-half years later he was on the scene when Garuda flight 200 crashed in Yogyakarta, killing 20 people - five of them Australians. Dooley's description of running to the burning aircraft, hoping desperately to find friends and colleagues on board, is one of the most powerful scenes in a memoir that captures the emotional and psychological toll of his tumultuous time in Indonesia. Nicole Madigan. Pantera Press. $36.99. Investigative journalist Nicole Madigan's second work of non-fiction is an intimate exploration of why people choose to stay in toxic relationships and what drives them to leave. It tells the stories of four women who fought devastatingly hard for relationships that were tarnished by betrayal, hurt, lies and behaviours that fractured the foundation on which they were built. This is an impressive follow-up to 2023's Obsession: A journalist and victim-survivor's investigation into stalking. If you liked Three Women by Lisa Taddeo, Torn offers insights into the complexities of love, infidelity, addiction and grief. Tim Booth. Macmillan Australia. $36.99. Stories about the bizarre stuff medical professionals face in their daily lives are a rich seam well mined by doctors, nurses and paramedics. The latest collection comes from Tim Booth, who was a motoring journalist before he handed in his road-testing keys and became an intensive care paramedic. From the woman who called 000 because she had run out of milk to a dairy-related crisis of a more adult kind involving the illegal drug GHB and copious amounts of custard, Booth takes readers behind the scenes in the world of emergency medicine, with generous lashings of absurdity and dark humour. Stuart Mullins & Bill Hayes. Simon & Schuster. $36.99. It was a crime that changed post-war Australia. On Australia Day 1966 three children - Jane, Arnna and Grant Beaumont - went missing from Glenelg Beach in South Australia. They were never seen again. It was a story at least as seismic for generations of parents as the disappearance of Madeleine McCann in Portugal in 2007. The authors, one a writer and the other a former police detective, have years of experience with the case. They name the prime suspect in the mystery as a businessman who was considered a pillar of Adelaide society, but who in reality was a serial predator. Natalia Figueroa Barroso. UQP. $34.99. Uruguayan-Australian Natalia Figueroa Barroso's debut novel spans two continents and three generations of women. The stories of Gaciela, daughter Rita and aunt Chula explore the different perspectives of a family's migrant past through identity, nostalgia for one's origins and buried secrets. Taking place in Western Sydney, 1970s Uruguay and present-day Montevideo, the novel shows that though trauma can be generational, there are often ways to heal. The author attributes her writing inspiration for her novel to The Color Purple by Alice Walker, Dirt Poor Islanders by Winnie Dunn and Family Lore by Elizabeth Acevedo. Sophie Green. Hachette. $34.99. Sophie Green's latest novel is a cozy read that will make you want to curl up on the couch with the crew at the Seaside Salon, Trudy, Anna, Evie and Josie. The four women either work or are clients at the salon in a classic coastal town. We follow them in the winter months of the 1980s as they find love and friendship, sometimes in unexpected places. Green's characterisation brings you quickly onside while the insights into a hairdresser's careful negotiation with their clients makes you smile. Oceanforged: The Wicked Ship Amelia Mellor. Affirm Press. $16.99. This is the first instalment of a promised five-book fantasy adventure series from the author of historical fantasy trilogy The Grandest Bookshop in the World. Recommended for readers aged 8 to 12, Oceanforged follows 13-year-old Cori, who is fighting for her life aboard the pirate ship Harridan skippered by the fearsome Captain Scrimshaw. When a powerful gauntlet from an ancient magical suit of armour fuses itself to her arm, plucky Cori thinks it's her ticket to freedom but first she must learn about courage and resilience, helped by her new friends, Tarn and Jem, who have amazing skills of their own. Suzanne Do. Macmillan Australia. $34.99. Lili Berry's life in the charming coastal village of Swanning is upended by the death of her twin sister, Honey. Fuelled by grief, Lili strives to uncover the truth. Pete, who is haunted by the disappearance of his son 15 years ago, is the one who found Honey's body. He and Lili plunge headfirst into the dark secrets and lies of their not always close-knit community. This is the debut novel of former lawyer Suzanne Do, who with husband Anh Do co-wrote The Little Refugee, a children's version of his bestselling memoir, The Happiest Refugee, and the feature film Footy Legends. Grant Dooley. Affirm Press. $36.99. Grant Dooley and his wife, Kristan, had barely settled into their diplomatic posting to Indonesia in 2004 when a bomb exploded outside the Australian embassy compound in Jakarta, killing 11 people. Dooley was one of the first responders. Two-and-a-half years later he was on the scene when Garuda flight 200 crashed in Yogyakarta, killing 20 people - five of them Australians. Dooley's description of running to the burning aircraft, hoping desperately to find friends and colleagues on board, is one of the most powerful scenes in a memoir that captures the emotional and psychological toll of his tumultuous time in Indonesia. Nicole Madigan. Pantera Press. $36.99. Investigative journalist Nicole Madigan's second work of non-fiction is an intimate exploration of why people choose to stay in toxic relationships and what drives them to leave. It tells the stories of four women who fought devastatingly hard for relationships that were tarnished by betrayal, hurt, lies and behaviours that fractured the foundation on which they were built. This is an impressive follow-up to 2023's Obsession: A journalist and victim-survivor's investigation into stalking. If you liked Three Women by Lisa Taddeo, Torn offers insights into the complexities of love, infidelity, addiction and grief. Tim Booth. Macmillan Australia. $36.99. Stories about the bizarre stuff medical professionals face in their daily lives are a rich seam well mined by doctors, nurses and paramedics. The latest collection comes from Tim Booth, who was a motoring journalist before he handed in his road-testing keys and became an intensive care paramedic. From the woman who called 000 because she had run out of milk to a dairy-related crisis of a more adult kind involving the illegal drug GHB and copious amounts of custard, Booth takes readers behind the scenes in the world of emergency medicine, with generous lashings of absurdity and dark humour. Stuart Mullins & Bill Hayes. Simon & Schuster. $36.99. It was a crime that changed post-war Australia. On Australia Day 1966 three children - Jane, Arnna and Grant Beaumont - went missing from Glenelg Beach in South Australia. They were never seen again. It was a story at least as seismic for generations of parents as the disappearance of Madeleine McCann in Portugal in 2007. The authors, one a writer and the other a former police detective, have years of experience with the case. They name the prime suspect in the mystery as a businessman who was considered a pillar of Adelaide society, but who in reality was a serial predator. Natalia Figueroa Barroso. UQP. $34.99. Uruguayan-Australian Natalia Figueroa Barroso's debut novel spans two continents and three generations of women. The stories of Gaciela, daughter Rita and aunt Chula explore the different perspectives of a family's migrant past through identity, nostalgia for one's origins and buried secrets. Taking place in Western Sydney, 1970s Uruguay and present-day Montevideo, the novel shows that though trauma can be generational, there are often ways to heal. The author attributes her writing inspiration for her novel to The Color Purple by Alice Walker, Dirt Poor Islanders by Winnie Dunn and Family Lore by Elizabeth Acevedo. Sophie Green. Hachette. $34.99. Sophie Green's latest novel is a cozy read that will make you want to curl up on the couch with the crew at the Seaside Salon, Trudy, Anna, Evie and Josie. The four women either work or are clients at the salon in a classic coastal town. We follow them in the winter months of the 1980s as they find love and friendship, sometimes in unexpected places. Green's characterisation brings you quickly onside while the insights into a hairdresser's careful negotiation with their clients makes you smile. Oceanforged: The Wicked Ship Amelia Mellor. Affirm Press. $16.99. This is the first instalment of a promised five-book fantasy adventure series from the author of historical fantasy trilogy The Grandest Bookshop in the World. Recommended for readers aged 8 to 12, Oceanforged follows 13-year-old Cori, who is fighting for her life aboard the pirate ship Harridan skippered by the fearsome Captain Scrimshaw. When a powerful gauntlet from an ancient magical suit of armour fuses itself to her arm, plucky Cori thinks it's her ticket to freedom but first she must learn about courage and resilience, helped by her new friends, Tarn and Jem, who have amazing skills of their own. Suzanne Do. Macmillan Australia. $34.99. Lili Berry's life in the charming coastal village of Swanning is upended by the death of her twin sister, Honey. Fuelled by grief, Lili strives to uncover the truth. Pete, who is haunted by the disappearance of his son 15 years ago, is the one who found Honey's body. He and Lili plunge headfirst into the dark secrets and lies of their not always close-knit community. This is the debut novel of former lawyer Suzanne Do, who with husband Anh Do co-wrote The Little Refugee, a children's version of his bestselling memoir, The Happiest Refugee, and the feature film Footy Legends.
News.com.au
2 hours ago
- News.com.au
EV cuts loom while Aussies pay for ute tax
OPINION: We've all seen the headlines: electric vehicle (EV) tax breaks are costing taxpayers billions. According to Government modelling, the Fringe Benefits Tax (FBT) exemption for EVs, alongside other related perks, is forecast to cost Australians $23.4 billion by 2036. That's a staggering figure, especially when you consider this policy only began in July 2022. As the Productivity Commission highlighted in its second report, the cost of the EV FBT exemption has blown out from an initial forecast of $55 million per year to a staggering $560 million, leading to calls to scrap it. But have you ever wondered about the figures for subsidising big, diesel and fuel-chugging utes over the past decade? Well, that number doesn't exist. While policymakers and commentators are lining up to slam EV incentives as 'inefficient' or 'costly', Australia's longstanding love affair with utes is being ignored. These vehicles, which make up four of the top five best-selling models in the country, are quietly driving away with generous tax perks – and Aussies are paying for it. Under Australia's tax system, commercial vehicles, such as dual-cab utes, can claim a Fringe Benefit Tax exemption, provided they're used 'primarily' for work. But the rules are so vague, that many use utes for personal reasons, which is allowed as long as it's 'minor, infrequent, and irregular'. In reality, many of these utes aren't ferrying tradies and tools. They're doing school drop-off, towing jet skis, and sitting in suburban streets. According to the Australian Institute, there are 1.5 times more utes on the road than there are actual tradies, which suggests a lot of people are claiming a tax break for a 'tool of trade' that's really just a big, comfy family car. It's not just FBT, utes also avoid the Luxury Car Tax, even if they cost well over six figures, because technically, they're not 'passenger vehicles'. So you can buy a RAM 1500 and avoid paying LCT, while someone buying a more efficient EV might get slugged. In 2023, high-end American-style utes alone cost Australians over $250 million in foregone revenue from the Luxury Car Tax, according to a report by the Australia Institute. That figure doesn't even count the tax revenue lost from the FBT exemption. Australia Institute research director Rod Campbell said Australia is subsidising 'big, dumb utes by hundreds of millions of dollars each year'. 'These vehicles are damaging roads, reducing safety and increasing emissions, yet they are given a massive tax break,' he said. I'm not ignoring the $23 billion figure attached to EV tax breaks, including FBT exemptions, import tariff relief, and other incentives but these tax breaks are designed to make EV ownership more accessible and affordable, particularly through novated leasing. According to the National Automotive Leasing and Salary Packaging Association, more than 100,000 Australians have taken up an EV novated lease since mid-2022. These policies are critical to making EVs accessible, especially as the upfront costs are a little higher than petrol and diesel equivalents. These EV tax breaks are part of a broader push by the Federal Government to reach net zero by 2050, with transport making up 20 per cent of national emissions. HALF-PREGNANT APPROACH But the Productivity Commission's report now recommends scrapping the EV FBT exemption, arguing it's too costly and now 'duplicative' with the New Vehicle Efficiency Standards (NVES). Sure … the (NVES) will encourage automakers to import cleaner cars into the market, but that's only half the battle. If consumers aren't incentivised to buy them, nothing changes. You need both; one brings supply, the other brings demand. As the Federal Chamber of Automotive Industries (FCAI) noted, without continued consumer support, the 'continuation of current customer buying preferences will inevitably lead to the accrual of substantial penalties.' Automakers can't just absorb these costs; they will likely have to raise prices on popular models, reduce their availability, or exit the market altogether. Countries that have successfully transitioned to high EV adoption rates such as Norway, have almost always used both strong efficiency standards and generous consumer incentives. Relying solely on one or the other often leads to slower progress. So if we're serious about being fair and decarbonising the transport sector, then shouldn't we be looking at everything? Including utes. Talking about utes means comforting one of Australia's most beloved vehicle segments. Tradies vote and Aussies rely on them. If the Federal Government decides to pull EV tax breaks now, while leaving the ute loophole wide open, that's like turning off a light in a room and calling it a major win for energy efficiency.
