Australian government proposes plan that could save motorists over a thousand dollars every year

Heads-up, motorists: the Albanese government is doubling down on its proposal for an aggressive plan to bring the emissions from Aussie vehicles in line with global standards.

The proposal aims to encourage a revolution in car efficiency, which could mean substantial savings on your trips to the fuel station.



Energy Minister Chris Bowen is propelling the plan forward with promises that motorists in the outer suburbs and regional areas might save as much as $1,695 annually.

This is a chapter in a larger narrative concerning cleaner technologies and climate change mitigation, a topic that has become the focus of many Australian and global policies.

The government's proposal would establish fuel efficiency standards starting next year, introducing fleetwide pollution caps on automotive manufacturers.


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A new proposal from the Albanese government can save Aussies over $1,600 on fuel in the coming years. Image source: jcomp on Freepik.


The objective is to move Australia in step with current practices in other developed nations.

Notably, this proposal doesn’t outright ban any specific car model. Nevertheless, brands will face penalties if the average emission from all their imported vehicles exceeds an emissions target.

This target illustrates a dramatic reduction of more than 60 per cent between 2025 and the end of the decade.



Under this plan, the standard functions as a carbon price which will force carmakers to either increase the sales of zero and low-emissions vehicles and reduce the sale of high-emitting models such as utes and SUVs, or bear financial penalties.

However, the proposed changes haven't gained unanimous approval.

Critics, predominantly from the Coalition and large sections of the car industry, claimed that it could raise vehicle prices by several thousands of dollars.

Nevertheless, Minister Bowen has sought to alleviate those concerns by spurring discussions about the potential fuel savings for motorists.

New departmental analyses have been issued that demonstrate substantial yearly savings due to lower fuel costs.



The government estimated that by 2028, a new vehicle owner in Gosford or Wyong on the New South Wales Central Coast could save an average of over $1,600 a year.

On the other hand, Bellarine Peninsula and Surf Coast Victorian drivers would be eligible for a $1,695 savings, while drivers from Caboolture and Ipswich in Queensland might save upward of $1,300 per year.

Western Australian drivers from Bunbury, Margaret River, and Brusselton may also save up to $1,200 per year.

Drivers in cities and the inner suburbs, who generally travel fewer kilometres, could see slightly lower savings, with an average motorist in inner Sydney potentially saving around $826.



The analysis also revealed that the Australian auto industry has a long way to go regarding fuel efficiency when compared globally.

New Australian passenger cars consume approximately 15 per cent more fuel than in New Zealand, 20 per cent more than in the US, and an astounding 40 per cent more than in the EU.

Minister Bowen also responded to concerns that the measure would lead to more expensive vehicle prices for Australians.

'That hasn’t happened anywhere else in the world, and why would it happen in Australia?' he said.

'Peter Dutton is arguing that Australians deserve less choice and should be paying more for more petrol.'

'He can make that argument if he wishes. The government chooses to make the argument that it’s about time Australia catches up with the rest of the world and gives Australians better choices.'



A frequent criticism of the policy is the lack of electric and low-emission utes and four-wheel drives, to which Minister Bowen responded that options would be increasingly more available.

'There are some, and they are improving every day,' he said.

'This is all about choices…and what we’re not doing is saying we’re going to phase out any particular type of car.'

Coalition Energy Spokesperson Ted O’Brien also branded the policy as a form of 'tax'.

'We’re happy to work constructively with the government, but they have to strike the right balance between emissions, price and choice,' he said.

'They have failed to strike any balance there.'



This climate-conscious move has led to the withdrawal of Tesla and Polestar from the Federal Chamber of Automotive Industries (FCAI) last week.

These firms argued that the lobby group threatened the proposed regulation’s implementation. TESLA also accused FCAI of contributing to a misconception that the regulation would elevate vehicle prices.

However, brands like Tesla and Polestar are set to benefit from the proposed regulation.

They could sell the credits earned to manufacturers who fail to meet the stipulated limits, thus contributing to their profitability.

Key Takeaways
  • Energy Minister Chris Bowen has highlighted the fuel-saving benefits of proposed pollution caps on new vehicles, with potential annual savings for motorists.
  • New fuel efficiency standards are set to commence next year, aiming to reduce vehicle emissions and align Australia with international standards.
  • The standards will impose a carbon price on car manufacturers, with financial penalties for those exceeding emissions targets.
  • The scheme has faced opposition from the Coalition and parts of the car industry. Still, it is backed by predictions of significant fuel cost savings for consumers, especially those in outer suburban and regional areas.

What are your thoughts on the government’s proposal? Let us know in the comments below.
 
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If this is the case why are current labor/green politicians all driving electric vehicles now. When towing caravan around Australia where will all the vehicles charge or do you have to take a diesel generator are we going to have enough electricity under Blackout Bowens plans.
 
I do not believe anything Mr Bowen says on this subject. His figures appear to be rubbery and his track record with the truth is very dodgy. His arguments are not convincing and everytime a new “idea” is propose it ends up costing the consumer. We need to be very wary of this government’s proposals.
 
Hope they have a lot of land to bury all the dead lithium batteries solar panels wind turbine blades and enough ships to service the off shore wind turbines.Nigel nicompopp was and still is an idiot no change from his previous stint in government.The best of what the alp has to offer.Do you think the car manufatures are going to comly with this.No tradesmen will be available because their ute has a flat battery.Look up people we have bugger all polution compared to the northern part of the planet a con of the highest order.
 
Oh whoopie! Mr Bowen is promising petrol price cuts for RICH PEOPLE who can buy expensive new cars. Hello. Don't they already have the option of buying an electric vehicle? That is, if they are not needing to tow a caravan, don't drive where there are no recharging stations, and don't need a ute or 4-wheel-drive. So humble workers and farmers don't matter. And as for most pensioners - well, too bad, so sad! Only the wealthy matter.

IF this plan has any merit at all - and that would be a first for the inept Bowen - it offers no benefit at all for anyone who cannot afford to buy a new car. It will likely reduce the trade-in or resale value of a used car. And Toyota is saying they will pay fines rather than comply because the time frame Bowen specified is not realistic or achievable, but they already stated they will put the price of cars up to cover the fines they pay. They will NOT buy carbon credits, because they have a fundamental issue with deceptive conduct.
 
If this is the case why are current labor/green politicians all driving electric vehicles now. When towing caravan around Australia where will all the vehicles charge or do you have to take a diesel generator are we going to have enough electricity under Blackout Bowens plans.
As the owner of an electric vehicle that does tow a van, (average around the 330km per charge). I can assure you there are plenty of charge stations. Ampol has them, the big servos on fwy also have them, most Bunnings, more & more local govt run recreational centres are running them out. Rapid charge ones cost around .65c per kW to charge in about 30 minutes. Plug in, go roaming Bunnings (if you get out of there in less than 30mins you're doing well). Most shopping ctrs will roll them out and encourage you with incentives like using your loyalty cards while you shop.
 
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As the owner of an electric vehicle that does tow a van, (average around the 330km per charge). I can assure you there are plenty of charge stations. Ampol has them, the big servos on fwy also have them, most Bunnings, more & more local govt run recreational centres are running them out. Rapid charge ones cost around .65c per kW to charge in about 30 minutes. Plug in, go roaming Bunnings (if you get out of there in less than 30mins you're doing well). Most shopping ctrs will roll them out and encourage you with incentives like using your loyalty cards while you shop.
Sorry, What!!! 330km per charge & takes 30 mins or more - at the moment I get between 790 km & 890 km per tank. and it only take me less than 5 mins at the pump.
 
The Labor Government just can’t let go of a carbon tax in their insane chase for renewables and climate change. It costs us so much more for fuel in Australia than other countries because of enormous amount of tax on fuel . Minister Bowen has got no idea and there is no comparison at all that can be made between Australia and Europe. The biggest part of our Carbon Footprint 👣 comes from Travelling Politicians, remember that this Government gave every politician five additional staff to take with them. It amazes me that with all the Zoom possibility’s that they need to travel the country kissing babies.
 
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I Know that what I am about to write will not be popular here, however here we go! It time for Australia to grow up, we have sat on our hands for the last ten years and now we are well behind the rest of the world in looking after our climate, our country, and our grandchildren. Get over yourselves, this change is coming whether you like it or not. Instead of complaining and running down the people who are trying to do something positive for the future, take responsibility for the fuck up we caused, yes that's right we made this mess so its time for us to do something about it. Lets stop running around waving our hands in the air and talking about what won't work and start doing something about what will work. My electric car does everything any other car of its size does, only better and a hell of a lot cheaper including pulling the caravan. GROW UP AUSTRALIA, GIVE OUR KIDS AND GRANDKIDS A FUTURE WHERE THEY DONT CHOKE TO DEATH ON THE SHIT WE HAVE LEFT BEHIND.
 
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As the owner of an electric vehicle that does tow a van, (average around the 330km per charge). I can assure you there are plenty of charge stations. Ampol has them, the big servos on fwy also have them, most Bunnings, more & more local govt run recreational centres are running them out. Rapid charge ones cost around .65c per kW to charge in about 30 minutes. Plug in, go roaming Bunnings (if you get out of there in less than 30mins you're doing well). Most shopping ctrs will roll them out and encourage you with incentives like using your loyalty cards while you shop.
bet it won't cost .65c when everyone converts (remember LPG costs and how much it it cost once we all converted) the diesel using charging stations will still be using fuel to charge us up...they are not electric vehicles they are battery operated vehicles which use and CONSUME batteries...what are we going to do with the dead batteries, they cant go to the tip, they cant be burned ,reused, recycled,...but we will cross that bridge when we get there..as usual, probably pay a fee for disposal which may negate the savings, remember the motorist is the largest source of money for the govt...so it wont be cheap
 
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I Know that what I am about to write will not be popular here, however here we go! It time for Australia to grow up, we have sat on our hands for the last ten years and now we are well behind the rest of the world in looking after our climate, our country, and our grandchildren. Get over yourselves, this change is coming whether you like it or not. Instead of complaining and running down the people who are trying to do something positive for the future, take responsibility for the fuck up we caused, yes that's right we made this mess so its time for us to do something about it. Lets stop running around waving our hands in the air and talking about what won't work and start doing something about what will work. My electric car does everything any other car of its size does, only better and a hell of a lot cheaper including pulling the caravan. GROW UP AUSTRALIA, GIVE OUR KIDS AND GRANDKIDS A FUTURE WHERE THEY DONT CHOKE TO DEATH ON THE SHIT WE HAVE LEFT BEHIND.
maybe the kids will be able to make toys out of the old batteries, by the way it takes petrol or diesel to charge these batteries (at 65c per kw) so the savings to the climate are not what you think, also ill wager that once we all have electric vehicles the price increases will be increased to cover the disposal of old batteries. who maybe they will become another FIBRO
 
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Well really Chris Bowen was hopeless as a treasurer and seems to wander around aimlesly ,hands on hips telling Joe public what is good for you I WONDER WHAT TYPE OF CAR HE GETS FERRIED AROUND IN UNPAID FOR OF COURSE .
 
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Well let’s first make it clear that one should not expect to need to replace the drive battery for an EV over the lifetime of the vehicle. Expectations should be > 480,000k range capacity, and no, they don’t die from old age, they die from cycling. And that > 480,000k one should still expect > 80% (statistically Tesla’s are holding about 90% of original range at 480,000k.)
Companies set up to recycle EV batteries are struggling because EV batteries aren't degrading anywhere near as fast as expected, other than 1st gen cars and Nissan Leafs without battery cooling; the batteries are lasting FAR longer. A 7 y/o Kia still has 96.8% of it’s original battery capacity. The electronics are failing faster than the batteries.

As for recycling, no, there isn’t going to be a fee for recycling. In fact, you should expect to have some reimbursement for the battery. It’s significantly lower cost to get the materials from recycling the battery than from mining and processing the materials.

Right now, use EV batteries (from crashed EVs) are being sold into the second hand market for enthusiasts converting ICE vehicles to BEVs.
 
As the owner of an electric vehicle that does tow a van, (average around the 330km per charge). I can assure you there are plenty of charge stations. Ampol has them, the big servos on fwy also have them, most Bunnings, more & more local govt run recreational centres are running them out. Rapid charge ones cost around .65c per kW to charge in about 30 minutes. Plug in, go roaming Bunnings (if you get out of there in less than 30mins you're doing well). Most shopping ctrs will roll them out and encourage you with incentives like using your loyalty cards while you shop.
With respect, can l please ask which state you are in? I'm in W.A. & haven't seen a charging station @ my Bunnings store. Thanks.
 
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