Government confirms end to Clean Car Discount scheme

The New Zealand Government has confirmed that it will end the Clean Car Discount scheme, otherwise known as the ‘ute tax’, by 31 December 2023.

Prime Minister Christopher Luxon made the announcement as part of his first post-Cabinet press conference on Wednesday, outlining the coalition Government’s plan for the first 100 days in power. It included an abundance of changes relevant to Kiwi motorists.

No Clean Car Discount means New Zealanders will no longer have to fork out thousands of dollars in fees when buying a new or used car that is considered a high emitter, nor will they receive a rebate for purchasing zero emissions vehicles like EVs.

Also on its way out is the Auckland Regional Fuel Tax, meaning fuel across the nation’s biggest city will become ten cents cheaper per litre.

“Blanket” speed limit reductions will also be scrapped, which will see many of our State Highways return to 100km/h, while most urban roads will revert back to 50km/h.

Both Prime Minister Luxon and Minister of Transport Simeon Brown also promised that the speed limit on new highways, like Transmission Gully and the Kapiti Expressway, would be raised to 110km/h.

“We will be a government that gets things done for New Zealand and we will start straight away, with a 100-day plan that includes a range of actions we will take to improve the lives of New Zealanders,” Luxon said.

“Our Government is starting the way we mean to go on – ambitious for New Zealand. With 49 actions to deliver in the next 100 days, this plan is hugely ambitious but we will be working as hard as we can.

“Our 100-day plan is focused on rebuilding the economy, easing the cost of living, restoring law and order, and delivering better public services. These are things that New Zealanders voted for and expect us to deliver.”