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.

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.

 

[Squizzy1]

Aust has long been known as the dumping ground for what the rest of the world won't accept, even our 91RON fuel is an example.

 

[Petra]

F/)&(#%)(& Chris Bowden and the Labor Government!!!!!!!!!!!!! and his electric cars !!!!!

 

[Greg350]

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

99% of countries are already doing this, the USA for example have been doing this for 50 years. The fuel is available, vehicles are already available that are tuned for it.

 

[Squizzy1]

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?

No, they promised cost of living relief during the election, even Angus Taylor said they did, and they have for the lower and middle income, but it should not have been necessary in the first place.
The Coalition said they could do nothing about electricity cost, this Govt. capped the gas price helping power prices that would have been higher, and has halved the price for industry.
You can't cause racism it's learned. The referendum was a bipartisan idea and achieved the correct result, rather than just being legislated.
Wind farms and the like are not on our doorsteps, but the proposed nuclear plants are.
But you're right on petrol, like all fossils they will never be cheaper than they are today, but as we know Aust. has long been the dumping ground for what the rest of the World reject, even our 91RON rubbish.

 

[Greg350]

Wow, the level of ignorance on this page is astounding. Why are you all going on about electric vehicles, this is not just about electric vehicles, the USA has had efficiency standards for 50 years, well before EV's. What they are doing is bring in a set level that the manufacturer must be under when ALL their models are taken into account. Have a look at the US market, have none of you seen the massive trucks they sell, over 6 Litre engines that chew through fuel BUT they also have much more efficient vehicles which offset the bad ones. When all are added together the efficiency rating is below the required level.

This doesn't mean only EV's, it just means bringing in more models that are more fuel efficient. The Australian market only has a small number of the available models worldwide, there's a big world out there and there are are numerous other vehicles we could be buying.

 

[Squizzy1]

F/)&(#%)(& Chris Bowden and the Labor Government!!!!!!!!!!!!! and his electric cars !!!!!

This is not Bowen or Labor's initiative, but the World's.
Walt had the right idea, free energy from the Sun.

 

[Greg350]

F/)&(#%)(& Chris Bowden and the Labor Government!!!!!!!!!!!!! and his electric cars !!!!!

OMG, this is not just about EV's. The USA has had efficiency standards for 50 years WELL BEFORE EV's. You people are ignorant.

 

[Squizzy1]

Never mind the batteries, how many more solar panels will be needed to make the electricity.

My solar produces around six times my current needs, which by default I'm happy to share with you.

 

[Keswickian]

Chris Bowen is cherry-picking the benefits of this programme. If we look at the full lifetime costs of owning such a vehicle, its a very different story:
cost of the new vehicle;
cost of replacing the new engine or batteries at end of life;
cost of upgrading the grid to handle the demand on power to charge all these vehicles;
cost of installing thousands of charging stations;
cost of modifying or decommissioning existing service stations;
loss of productivity while commercial drivers wait in line for charging;
damage to the environment in mining and processing all the scarce materials needed to build the cars, batteries and (renewable) power supply;
cost and damage to the environment to re-purpose or dispose of the used batteries, turbine blades etc; .
. . .and this all presumes that a tiny 0.015% increment of our atmosphere controls the climate.

 

[Squizzy1]

Absolutely!!! No mention of the fuel excise levy being reduced which would help all Australians right now!
How do I we environmentally dispose of all the batteries that are in EVERYTHING now and what cost to the planet

Another obvious horse lover.

 

[Squizzy1]

Does Australia actually have the quality fuel required to run these vehicles? If not then it is a nothing policy!

Yes we do, but typically we being the dumping ground accept 91RON.

 

[Squizzy1]

Electric cars cost nearly as much on electricity as petrol and by the time you replace the batteries they probably cost more. This is ridiculous.

Maybe so, but fossil fuels will be forever dearer, in fact they will never be cheaper than they are today.
My solar produces six times my electricity needs and it's free.

 

[Croydon 2911]

The elephant in the room and never discussed is discontinuing use of 91 Octane petrol. As as I know we are the only country that uses this polluting fuel. Several years ago there was talk of upgrading the petrol used in most family vehicles, however nothing was ever done; it was put in the too hard basket. All European cars use 95 Octane fuel because of the stringent environment legislation in Europe. Why haven't we adopted the same policy here? It would reduce pollution significantly. Of course Diesel fuel is the most polluting of all, but heavy transport are already opting out of using diesel and switching to alternatives.
I may well switch to using 98 Octane fuel in my BMW, as fuel consumption is reduced and it is better for the environment.
David Orr
Croydon, Vic

 

[Docit]

It is already proven at current state that total cost of ownership of electrical car is bigger than traditional petrol/diesel car.

No its not. Quite the opposite in fact.

The upfront costs of EV's tend to be a bit more compared with an equivalent ICE car, however the running costs are much lower. I live in Queensland where we have a very high uptake of home solar. A lot of the EV's around Queensland are charged at home as zero cost. EV's have far fewer moving parts than ICE vehicles. Consequently maintenance is much less. With regenerative braking, brake pads last a very very long time.

Batteries last a very long time. We are already seeing EV's that come with a battery warranty of 800,000 km and we are likely to see more.

If you ignore the mass of misinformation from Sky or the Murdoch press etc, you might start to realise things are not as you are led to believe.

 

[Docit]

And they are very unreliable too, IF THEY DON'T CATCH FIRE.

ICE cars are about 100 times more likely to catch fire than an EV. The latest batteries are Lithium Iron Phosphate (LFP), and are substantially less likely to catch fire. We are also just starting to see the first EV's being produced that have Sodium Ion Batteries. These can never catch fire.

Reliability of EV's varies a lot with the brand (just like ICE vehicles in fact!). The issues over reliability are blown up out of all proportion by the Murdoch press, Sky and other news channels that are funded by both legacy auto companies and the oil companies who have a vested interest in delaying the uptake of EV's as long as possible to try to protect their businesses.

 

[Docit]

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).

No its not. The cost of raw materials for EV's is dropping like a stone. We are already seeing the first Sodium Ion battery powered EV's, where the major raw material is salt!

The ICE era is rapidly coming to an end, despite the best efforts of the oil companies and car companies like Toyota. Incidentally, Toyota are very likely to go out of business within the next couple of years since they have the highest level of debt in the world, have delayed their move to EV's and are now seeing their sales fall off a cliff. Sounds like an appropriate outcome for a company that has spent millions trying to undermine EV's through spreading false information.

 

[Rain72]

James, this is only raising Australian emission standards to fall in line with most of the rest of the world. The only two nations with inferior emission standards are Australia and Russia. Australia and Russia have long been dumping grounds for new vehicles that do not meet the emission standards of the rest of the world. Russia also manufactures vehicles with lower emission standards, for local consumption.
An anomaly is that luxury vehicles imported into Australia are taxed accordingly as "Luxury Vehicles". However, those paying for them are receiving a vehicle that has inferior emission criteria to those sold elsewhere. The dilemma is: Are we going to find that vehicle prices rise due to the higher emission standards required, or as I see it: There should be no increase, as the new vehicles will be the same as those sold elsewhere at present. Apparently, the vehicles are similarly priced at present, either low or high emission standards.

Of course vehicle prices will rise. Anyone who knows anything about manufacturing knows making a significant change to the specifications for the final product imposes heavy costs. This is just more Greenie nonsense. Emissions from Australian cars are so minimal that they have zero impact on the global environment.

 

[Ted and sam]

Thats a great idea for those who can afford a new car and I imagine that to push the issue the price of fuel for us that can't afford a new car is going to rise, I have a 2003 ford, gas only, have I not been doing the right thing for the environment ??????

 

[Rain72]

Who is going to pay tax to maintain roads when we are all driving fuel-efficient vehicles? Oh, that's right, the pensioners and lowest wage earners who can't afford to buy the fancy new fuel-efficient models will pay. And when that's not generating enough revenue and the government can't push the tax any higher, they will tax EV owners on a per km travelled basis (already proposed in Victoria!) and goodbye savings! You will have paid a premium for that EV only to find it's more costly to run than your faithful old petrol-driven SUV. And that's BEFORE you have to replace the batteries!
Actually, though, EVs are already obsolete and hydrogen is the way of the future. It would have been years ago only they had to find a way to fuel hydrogen cars with a fuel that could be taxed rather than with plain old tap water!

 

[Rain72]

No, they promised cost of living relief during the election, even Angus Taylor said they did, and they have for the lower and middle income, but it should not have been necessary in the first place.
The Coalition said they could do nothing about electricity cost, this Govt. capped the gas price helping power prices that would have been higher, and has halved the price for industry.
You can't cause racism it's learned. The referendum was a bipartisan idea and achieved the correct result, rather than just being legislated.
Wind farms and the like are not on our doorsteps, but the proposed nuclear plants are.
But you're right on petrol, like all fossils they will never be cheaper than they are today, but as we know Aust. has long been the dumping ground for what the rest of the World reject, even our 91RON rubbish.

Um, lowered the cost of living for lower to middle-income earners? What planet are you on? Inflation has been rampant, with 20%+ increases in food costs, 30%+ on insurance, rents skyrocketing, medical costs skyrocketing, and as for electricity - it's GONE UP UP UP. There has been no reduction. We installed a huge solar system 6 years ago and it's paid for itself, but now it's not even going close to covering our power usage. We are getting bills of $100+ a quarter after years of the power company paying us up to 3 times that amount. And that's despite a government subsidy of around $250 a year. I have children on middle-income salaries and they are $10,000+ each worse off this year than last. Their wage rises were less than 1/8th of the increase in living costs. And the promised tax relief is a joke given the horrific increase in taxes they have faced (including paying nearly $4000 a year in fuel excise tax just to go to work every day, and that's increasing again!)