The federal government has announced its awaited new vehicle efficiency standard for Australia in a bid to deliver more cars that are cheaper to run and more sustainable.
While the US has had a policy like this in place for 50 years, Australia and Russia are the only advanced economies without a vehicle efficiency standard.
Australia’s newly unveiled standard is set to push car makers to give Australian motorists more choices of new cars, utes and vans that use less fuel.
“Because of a lack of action on an efficiency standard, Australian families are paying around $1000 a year more than they need to be for their annual fuel bill – the federal government is delivering long-term cost-of-living relief to fix that for new vehicles and put money back in people’s pockets,” federal climate change and energy minister Chris Bowen says.
“We’re giving Australians more choice to spend less on petrol, by catching up with the US – this will save Australian motorists $100bn in fuel costs to 2050.”
“This is about ensuring Australian families and businesses can choose the latest and most efficient cars and utes, whether they’re petrol and diesel engines, or hybrid, or electric.”
Now available on cleanercars.gov.au, the preferred model for the new vehicle efficiency standard has been under development since the federal government committed to it last year.
The federal government says that if Australia catches up with the US standard by roughly 2028, Australians can save about $1000 per vehicle per year.
The standard only applies to new passenger and light commercial vehicles, not used nor existing vehicles.
Federal transport minister Catherine King says the standard will deliver more vehicles to Australia with the latest engine and design technologies to ensure lower fuel bills, meaning bigger savings at the pump.
“The federal government favours a model that ensures achievable change, which will bring Australia in line with US standards by 2028 and provide the optimal cost benefit outcomes for Australian car buyers,” King says.
“The standard increases choice. It doesn’t dictate what sort of car or ute people can buy, but will mean you have a wider range of modern and cheaper to run vehicles.
“As you make the choice about your next car, it’s only fair you have the widest range of options possible to get the car that is right for you and right for your hip pocket.”
The federal government will consult on the preferred model for a month and introduce the legislation as soon as possible, with the new cost saving rules to come into effect by January 1, 2025.