Joint media release: Delivering Australians more choice of cars to save on fuel

The Hon Chris Bowen MP, Minister for Climate Change and Energy

The Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government

The Albanese Government is delivering more cars that are cheaper to run, giving motorists choice by introducing a New Vehicle Efficiency Standard for Australia.

The United States has had a similar policy in place for fifty years. But because of a decade of delay and denial, Australia still stands alongside Russia as one of the only advanced economies without the Standard. This is costing families and businesses thousands of dollars at the petrol pump.

The Albanese Government’s New Vehicle Efficiency Standard will push car makers to give Australian motorists more choices of new cars, utes and vans that use less fuel and that have until now only been available to buyers in overseas markets.

The preferred model for the New Vehicle Efficiency Standard, made available today on cleanercars.gov.au, has been under development since the Government committed to the Standard last year - to ensure it strikes the right balance in giving Australians more choice while using less petrol.

If Australia catches up with the Standard in the U.S. by around 2028, Australians stand to save about $1000 per vehicle per year.

The Standard will only apply to new passenger and light commercial vehicles, not used or existing vehicles. They work by providing car companies with targets for average emissions per kilometre from new vehicles sold.

The New Vehicle Efficiency Standard will deliver more vehicles to Australia with the latest engine and design technologies to ensure lower fuel bills, meaning bigger savings at the petrol pump.

The Albanese 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 1 January 2025.

The Impact Analysis and ways to have your say are available at www.cleanercars.gov.au.

Quotes attributable to the Minister for Climate Change and Energy, Chris Bowen:

“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 Albanese Government is delivering long-term cost-of-living relief to fix that for new vehicles and put money back in people’s pockets.”

“We’re giving Australians more choice to spend less on petrol, by catching up with the U.S– 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.”

Quotes attributable to the Minister for Transport, Regional Development and Local Government Catherine King:

“The Albanese government favours a model which 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.”

"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."