An Australian MP has launched a fierce attack on the nation's growing appetite for oversized 'monster utes', calling for an urgent reform to a tax system she claims incentivises dangerous and polluting vehicles.
The 'Dangerous' Tax Loophole for Mega-Utes
Teal MP Monique Ryan is urging the government to close what she describes as an outdated tax loophole. She argues it is directly fuelling the surge in bigger, heavier, and more dangerous vehicles on Australian roads.
Under Australia's luxury car tax, a 33 per cent levy applies to the portion of a car's price above approximately $77,000 for standard models, or around $89,000 for fuel-efficient ones. However, many large dual-cab utes escape this tax completely, even with price tags well over $100,000, because they are classified as commercial vehicles rather than passenger cars.
Dr Ryan contends this rule, introduced in 2000 to protect local manufacturing, has morphed into a perverse incentive. "There are twice as many utes as tradies in Australia," she stated. "We need to remove the luxury car tax exemption, which incentivises people to buy mega-utes instead of safer, cleaner, smaller cars and SUVs."
Safety Statistics Paint a Grim Picture
The MP highlighted alarming safety data to support her call for change. She revealed that large SUVs and utes are 82 per cent more likely to kill children in collisions, and 44 per cent more likely to kill adult pedestrians or cyclists.
"They damage our roads and add to air pollution, harming our health," Dr Ryan added, pointing to the broader environmental and infrastructural costs.
Her concerns are underscored by a recent and tragic trend in road safety. According to Transport Accident Commission data, 51 pedestrians had been killed on Victorian roads so far in 2025. This marks the highest annual figure recorded since 2008.
Experts Link Vehicle Size to Rising Fatalities
Transport safety researchers are drawing a direct connection between the increasing size of vehicles and the rising pedestrian death toll. Melbourne University researcher Milad Haghani told The Age that the growing dimensions of vehicles on Australian roads are driving a nationwide increase in pedestrian fatalities.
Critics, including Dr Ryan, argue the current tax thresholds are badly out of date. They unfairly penalise hybrid and electric vehicles once they cross the luxury price point, while leaving expensive, high-polluting utes untouched under commercial vehicle rules.
With domestic car manufacturing long ended, opponents say the luxury car tax has barely been updated and now works against public safety and environmental goals. The debate puts a spotlight on whether tax policy should continue to encourage everyday use of oversized vehicles amid a road safety crisis.
