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Byron Shire
July 14, 2026

What’s so controversial about vehicle efficiency?

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Smoke from old dirty car pipe exhaust.
It’s about to become more difficult to sell polluting, inefficient cars in Australia. Adobe.

Thanks to years of political inaction, Australia is one of the few countries in the world not to have a New Vehicle Efficiency Standard. The European Union, New Zealand and China have one. Even the United States has a standard, which means new cars in Australia use 20 per cent more fuel and create 20 per cent more pollution than their American counterparts. With the Albanese Government about to introduce legislation to correct this situation, the Coalition is busily dusting off the ‘war on utes/the weekend’ rhetoric.

Nationals senator and shooting enthusiast Bridget McKenzie recently claimed Australians were about to be ‘smashed between the eyes’ by the New Vehicle Efficiency Standard, while Peter Dutton has described the move as a ‘huge new tax’ on families. Sound familiar?

‘If they want to apply a tax, they need to explain it,’ said the opposition leader, still smarting from his by-election defeat in Dunkley. ‘Not just drop it out there and then not mention it again and pretend like it’s not happening.’

Actually the proposed legislative change has already been subject to an extensive public consultation process, beginning in April 2023. You can read more about what’s been proposed and the public reaction here, including 2,700 written submissions. The government has recently accepted another round of public submissions on the design of the proposed standard.

Things looking up for green(er) cars in Australia? Cloudcatcher Media.

Do something!

A quick flick through the thousands of responses reveals an overwhelming desire from stakeholders and the general public to do something serious about vehicle efficiency standards, yesterday if possible.

Because Australia doesn’t have a standard, we’ve become a dumping ground for inefficient vehicles which are unsaleable in most of the world, apart from places like Russia.

The lack of government policy has provided cover for car companies here to continue business as usual, in spite of the effects on family fuel costs and the global carbon budget.

With climate damaging emissions from cars, utes and vans making up almost two thirds of transport emissions in Australia, the Climate Council has revealed that five car companies are responsible for almost two and a half million tonnes of CO2 emissions, with Toyota the worst offender at 547,919 tonnes, comparable to the Scope 1 output from some of the country’s biggest coal mines.

The rest of the ‘Dirty Five’ are Hyundai (including Kia and Genesis), Ford, Hyundai, the Renault-Nissan-Mitsubishi Alliance, and Mazda. By an amazing coincidence, these companies have also been some of the most vocal critics of the proposed New Vehicle Efficiency Standard.

Too much or not enough?

Independent Senator David Pocock has called for the standards to be brought in six months earlier, while LNP attack dog and Member for Fairfax Ted O’Brien said the ‘government’s heavy-handed approach will drive utes off Australian roads’.

At issue is the penalties for non-compliant vehicles; how much and who will pay? Industry data shows that Toyota will face a shortfall in the scheme’s first year of around $1,300 impost per ute and van, unless the company changes the cars it imports and sells (which of course is the idea).

Tesla charger. Photo Tree Faerie.

The plan is that car companies without appropriately low emission products buy credits from other manufacturers with more advanced vehicles. Efficiency opponents claims these costs will have to be passed on to consumers.

A few days ago, Tesla quit the Federal Chamber of Automotive Industries (a national lobby group for car-makers), for its support of the Coalition’s campaign of misinformation over the effects of the New Vehicle Efficiency Scheme on car prices. Other emerging car makers look likely to follow them.

Climate Change Minister Chris Bowen said ‘it is incumbent on everyone in the debate to provide full facts, proper facts, truthful facts’, pointing out that vehicle efficiency standards have existed in most countries for decades, with no evidence of car prices going up as a result.

Unfortunately, Peter Dutton has proven repeatedly that he’s much more interested in power than facts, no matter the cost to Australia, talking nonsense about nuclear energy at every opportunity and flying across the country recently to attend Gina Rinehart’s birthday party for forty minutes, but unable to resist demonising vehicle efficiency standards in pursuit of short term electoral advantage.


David Lowe
David Lowe. Photo Tree Faerie.

Originally from Canberra, David Lowe is an award-winning film-maker, writer and photographer with particular interests in the environment and politics. He’s known for his campaigning work with Cloudcatcher Media.

Long ago, he did work experience in Parliament House with Mungo MacCallum.



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