During a press conference on Tuesday, shadow infrastructure minister Bridget McKenzie and shadow energy minister Ted O’Brien repeatedly labeled the government’s updated vehicle emissions regulations as a “car tax,” despite contrary assertions from Toyota’s Matthew Callachor. Their stance persisted even after Callachor explicitly dismissed the characterization.
McKenzie acknowledged that the opposition had yet to review the legislation but made it clear they intended to vote against it.
Concerns from Toyota had previously centered around the standards potentially being too strict, with potential negative impacts on popular models like utes and family cars. Conversely, Tesla had advocated for the standards to be more stringent.
Callachor described the revised framework as a constructive move, adding, “We shouldn’t be under any illusions that there still remains a very big challenge in achieving those ambitious numbers.”
Diverse Industry Reactions
Electric Vehicle Council chief executive Behyad Jafari praised the policy, calling it a “strong, ambitious” measure that sends a definitive message to global automakers.
“Australia now demands the same options in electric cars, vans, and utes that you offer to the US and Europe,” he stated.
Amanda McKenzie, CEO of the Climate Council, also endorsed the compromise, noting, “Manufacturers have been dumping their dirtiest cars here for years, and that has got to stop.”
However, the Federal Chamber of Automotive Industries (FCAI), which had lobbied for a more lenient approach, offered only measured support.
An FCAI spokesperson referred to the changes as “a step in the right direction” but raised ongoing concerns about challenges the industry and consumers may face. This stance had previously led Tesla and Polestar to leave the FCAI in protest over its resistance to stricter standards.
Broader Implications
While the government and groups such as the Grattan Institute argue the new standards will increase the availability of cost-efficient, low-emission vehicles, critics, including the federal opposition, claim the initial proposal would have driven up the prices of some popular models, particularly utes.
The updates come on the heels of a similar move by the Biden administration in the US, which recently eased its own emissions regulations.
The Albanese government had previously indicated its intention to model Australia’s standards on the US approach.
Australia’s Efficiency Gap
Australia lags significantly behind other major markets in vehicle fuel efficiency. A new car in Australia consumes an average of 6.9 liters of fuel per 100 kilometers, far more than the 3.5 liters in Europe and 4.2 liters in the US.
Addressing this disparity remains a key objective of the updated standards, which aim to gradually bring Australian vehicles in line with international benchmarks.