Should the Clean Vehicle Discount Scheme (rebates for low-emission vehicles and fees on higher-emission vehicles) be ended by 31 December 2023?
This omnibus bill amends the Land Transport Act 1998, the Land Transport Management Act 2003, and associated regulations to end the Clean Vehicle Discount Scheme by 31 December 2023.
⚡ Taken under urgency
Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.
MPs’ arguments for and against the bill
Why support it
The Government argued the scheme was inequitable, taking money from people with little choice over their vehicles and subsidising those who could already afford electric vehicles.
Supporters said the scheme was fiscally unsustainable, citing a $300 million deficit left behind by the previous Government.
The Government argued the scheme required constant changes that created uncertainty in the car market, and that electric vehicle uptake would continue regardless through manufacturer supply and charging infrastructure investment.
Why oppose it
Opponents argued the scheme was an effective, evidence-based way to reduce vehicle emissions by providing a price incentive at the point of purchase, without which uptake of low-emission vehicles would fall.
Opponents said the bill was rushed through under urgency without select committee scrutiny or public release of the regulatory impact statement, denying the sector and public a chance to participate.
Opponents argued removing the scheme leaves no alternative policy to support households making low-emission choices and offers no transition provision for purchase agreements made before the cut-off date.
These are claims MPs made in Parliament’s debate — not verified facts.
Full bill summary & link to official bill page
This bill amends the Land Transport Act to end the Clean Vehicle Discount, commonly known as the Clean Car Discount or "feebate" scheme. Under that scheme, buyers of low-emission vehicles such as electric and hybrid cars received a rebate (discount), funded by fees charged on buyers of higher-emission vehicles like large petrol utes. The bill removes both the rebates and the fees, so a vehicle's emissions no longer add a subsidy or a penalty to its purchase price. It affects anyone buying a new or imported used vehicle, along with car dealers and importers.
It is a government bill implementing a coalition commitment to scrap the scheme. Supporters argue it removes an unfair cost on people — especially tradespeople and rural drivers — who need larger vehicles and had few low-emission alternatives, and say the vehicle market can lower emissions without subsidies. Opponents argue the scheme was effectively cutting transport emissions by making cleaner cars cheaper, and that removing it undermines New Zealand's climate targets.