Discover how new fuel-efficiency standards will help Australian drivers save hundreds of dollars!

Australia is finally catching up with the rest of the developed nations by introducing new fuel efficiency standards.

This recent move by the federal government could save Australians up to $1,000 a year in fuel costs, a significant relief for many households.

The unveiling of the preferred model by Minister for Climate Change and Energy, Chris Bowen, signals a new era for the Australian automotive industry.

The new standards, which will apply to new passenger and light commercial vehicles, are expected to encourage car makers to sell more electric and fuel-efficient vehicles.

This move is seen to provide more choices to potential car buyers.

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The government is set to release new fuel-efficiency standards. Image source: Freepik.

If Australia matches the United States in average vehicle efficiency by 2028, drivers should save a lot per vehicle yearly, according to Bowen.

'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,' Bowen said in a statement.

This move is not only beneficial for consumers' wallets but also for the environment, as it promotes the use of vehicles that emit less carbon dioxide.

The introduction of these standards is expected to save Australian motorists $100 billion in fuel costs by 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,' Bowen added.

The move has been praised by climate groups and industry bodies, including the Electric Vehicle Council (EVC).

EVC Chief Executive Behyad Jafari said, 'This announcement from the Federal Government, when legislated, will give Australians a greater choice for the cars they want and put money back in their pockets through lower fuel bills.'

'Within a few short years, it will mean the average family will not have to spend as much on imported petrol, which we know is hugely volatile on price.'

The new policy is expected to end Australia's position at the back of the queue when it comes to the best and cheapest electric vehicles.

Car makers have been incentivised to offer their most efficient vehicles elsewhere first, but this should change with the introduction of the new standards.

'That should end now with this policy, and Australian car buyers should notice the change very quickly,' Jafari added.

The government will consult on the preferred model for a month and introduce the legislation as soon as possible.

The new cost-saving rules are expected to come into effect by January 1, 2025.
Key Takeaways
  • Australians could potentially save up to $1,000 annually on fuel costs with the new fuel efficiency standards set by the government.
  • The new standards encourage car manufacturers to offer more electric and fuel-efficient vehicles in the Australian market.
  • If the country achieves the same vehicle efficiency as the United States by 2028, significant savings on fuel are expected for drivers.
  • Climate groups and the Electric Vehicle Council have lauded the Federal Government's move, with expectations that it will offer Australians greater vehicle choice and cost savings on fuel.
What do you think about these new fuel efficiency standards? Do you believe they will make a significant difference in your annual fuel costs? Share your thoughts with us in the comments below.
$1000 fuel saving but, instead of $50k for new vehicle, you have to pay $70k. Even if it’s $60k you’re out of pocket more to feel warm and fuzzy.
Never mind the batteries, how many more solar panels will be needed to make the electricity.
Massively more because they’re variable supply. Crappy day in Sawtell, today, and I may be lucky to cover consumption but little export. I install solar & never designed to run a nation.
Considering 100% of our fuel is imported government could be dictating the quality of the fuel. The diesel delivered is claimed to be some of the dirtiest in the world
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electric vehicles ar NOT on my radar as I want to travel this country of ours (while it is still ours) & do not believe a word of what Bowen says. I have read that the fuel that we currently have in Australia is not of the type that works with the new standards, if that is correct that would posibly mean that the correct fuel would be more expensive.(thergoes our $1000)
Saw an interview with car dealers who said that they will currently not offer trade in figs. electric vehicles
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As usual with this government the idea looks good on paper but the devil is in the detail. According to the motoring expert Paul Gover our fuel is not yet at a suitable standard to meet these conditions so additional cost will be incurred and vehicle costs will rise
Sounds great but this will only work depending on the COST of these cars. I don't believe a family struggling would be able to afford to buy these vehicles. They're way too expensive! I'm 60 years old and only 5 years ago I was in the position to buy a new car, but had a 5 year term loan which I was able to make my repayments, but in the the last year of my loan, due to costs of living I was not able to have any extra savings to go towards my retirement in a few years time with all the bills and groceries etc ontop. Example, I went to Woolies to buy the Moro brand olive oil and to my surprise the price of the 4 lt tin went up $7!!!!@ I left it, thought, "stuff you woolies, you can keepit!" Again, young families who are just starting out or have kids will find it difficult to buy a new fuel efficient car, many of them will have HECS fees as well, where the government will be charging interest ontop. This is what they should be abolishing to help them.
Forget too, would never buy an electric car, not for Aussies who love travelling. Did you see the test with the BMW's? One was electric the other petrol. Both drove to I think to Sydney. The electric BMW couldn't find a fast charging station, which is 40 minutes!!!!, as it was broken, not working. The other charging stations are 8 hours!!!! Really! And those lithium batteries catching on fire and stay alight for over a week. In europe, they dumped one in the sea, it was still on fire! No thanks.
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Sounds like the same twaddle and web of lies spun before the election regarding a $250 saving on electricity prices. Am yet to see any detail from Bowen … all we are getting is spun, spin, spin and 🦬💩
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If someone has a vehicle that is a 2004 model & is a pensioner a new vehicle is not affordable to that person what then?
That is all very well but how many pensioners can change cars on a regular basis and really will the older generations actually travel enough to save a $1000 per year off petrol.
Sorry diesel users, you miss out!
My 2003 diesel vehicle is only 7% more thirsty than current figures!
It has been proved. EV and hybrid cars are not the way to go. The astronomical cost just to get the raw materials to make one far outweighs the cost of a regular petrol or diesel car. The cost of fuel has risen because once again the government is pandering to the rich, (also to help pay for their overseas jaunts).
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Electric cars are far to expensive not only that we are in a little retirement village and there would be no way that we could charge the electric car and also they have been known to catch fire, so no electric cars for us.
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I don’t buy this idea. It’s one thing to switch to hybrid and ev technology but do we have the charging stations ready to go? Certainly not yet. How much will it cost to do this do we have the power to supply the increased demand for electricity to charge ev’s in numbers. Likely the ailing existing grid network will require additional upgrades.
And maintenance of ev’s is a consideration. Not cheap by all accounts. And how often will batteries need to be replaced?
Finally what will be the cost of recycling or disposing of dead batteries ? Who pays?
I believe more efficient and economical cars engines are a far more sensible way of saving money for consumers. Plus the fuel excise levy could be lowered.
Australia has plenty of oil and gas reserves so producing our own fuels makes sense AND gives us the security of self reliance.
EV’s are coming so let them come at their own pace. We do not have to rush a push towards them before fixing the infrastructure needed to support them.
This who idea is a pup. By the time these numbers are achieved most of us will be dead and gone. Lower fuel levies,means taxes have to come from somewhere else.
Roads are in woeful condition now and governments don't have the money to fix them. EV drivers bitch about paying road taxes now how will they be when they have to pay it all. They're telling you that things will be cheaper. Greed will make sure that that doesn't happen.
We have the oil but how much to replace our scraped refineries and the necessary infrastructure... the investors are going to want a return. Who is going to pay this .. us little guys grand kids
Shhhhh.....The latest fuel excise rise takes effect on Monday 5 February 2024 and sees the excise rate increase from 48.8 cents per litre to 49.6 cents per litre. While 0.8 cents is by no means a dramatic rise, the latest increase will mean close to $40 in total excise costs per tank for a large SUV with an 80-litre fuel tank
Thats all good if you can afford to buy a new car at this rate I will have to sell my car and buy a horse. More rubbish from a rubbish government. ELECTRICITY AND THE COST OF LIVING are ridiculous and you want us all to drive electric cars that cost a fortune to recharge. Get your heads out of the clouds and get a reality check we dont all have millions in our bank accounts like you lot.
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What utter rubbish. Do you actually believe what this lying government ever says? Don't you get it yet? There is always a catch with "such wondefful offers" and coming from this govt? Looks like you have forgotten already this current federal govt promosed to lower cost of living, promised to lower the cost of electricity, tried to cause racism in their referendum to donate more millions of taxpayers money to wherever, wants renewable wind farms in your backyard, and now save Petrol which just keeps going up and up. Fake promises and lies all the time!! Why promote them?
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