The federal government has announced a New Vehicle Efficiency Standard for Australia which it claims will ultimately save new car buyers $1,000 a year in fuel bills – and business users even more.
Climate Change and Energy Minister Chris Bowen said in a statement that the United States has had a similar policy in place for fifty years, with Australia virtually alone with 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 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.
According to the statement the standard will push car makers to give motorists more choices of new cars, utes and vans that use less fuel and that have until now only been available overseas.
Chief Executive of the Smart Energy Council John Grimes said the new standard could slash rising transport emissions.
“New Vehicle Efficiency Standards raise the standard for easing cost of living pressures and delivering imate action at the same time.”
“Australians are paying far too much for petrol, having been forced to drive much less efficient cars than any other developed country. This must, and will, change.”
According to the government, if Australia catches up with the Standard in the U.S. by around 2028, Australians stand to save about $1,000 per vehicle per year.
The 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.
Bowen said: “Because of a lack of action on an Efficiency Standard, Australian families are paying around $1,000 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.”
Picture: Chris Bowen