Chris Bowen: New efficiency standards will give Aussies greater choice

If I told you that pretty much every other developed country in the world except Australia makes car companies sell them better, cheaper to run, more efficient cars, wouldn’t you want your government to fix it?

Embarrassingly, Australia is next to Russia in how behind the times we are on introducing new vehicle efficiency standards, making us a dumping ground for cars that cost drivers more each year to run.

Similar standards have existed in the US since the 1970s, along with New Zealand, the UK, and Europe. In fact, 85 per cent of the global new car market. Because of this, Americans’ cars use about 20 per cent less petrol on average than the new cars we get offered by international car companies. That’s 20 per cent less in petrol bills for Americans, and 20 per cent lower emissions.

By making Australian vehicles more efficient, someone in Mandurah could save more than $1500 on average every year on fuel bills from 2028. Ask Andrew Hastie why he doesn’t want that to happen. Or ask Melissa Price why she doesn’t want people in her electorate to have the option to save more than $1800 a year in fuel costs.

It’s time to ensure that car companies give Australians better choices when it comes to saving money, not just on fuel but also over the lifetime of their new car in maintenance costs and resale value. That’s why Transport Minister Catherine King and I have announced that the Government will introduce new vehicle efficiency standards for Australia from January 2025.

Of course this means more choice of EVs and hybrid cars. We know many people are thinking about making the switch, but we just don’t get sent the same options as so many other countries. New Zealand and the US have around 150 EV models available, but fewer than 100 in Australia.

But it’s not just about EVs. There’s a wide range of fuel efficiency, even within models. A number of popular models here have variants sold in the UK and New Zealand that use up to 25 per cent less petrol every year. You can choose to buy off-road, hybrid Toyota pick-ups in the US or a hybrid Honda Jazz in New Zealand — so why not in Australia?

Now, you will hear plenty of fear-mongering about this change, so here are the facts. There is no tax on cars and utes. It’s embarrassing that the Opposition has got the facts so wrong about this. Where it’s in place overseas, this policy does not cost consumers; evidence shows the cost is absorbed by the car makers.

This policy does not apply to your current car or ute or anything sold in the second-hand market.

We’re not banning utes or SUVs. The top 10 utes and SUVs in America are all subject to their similar efficiency standards — which they’ve had since the 1970s — and they’re all still best sellers, even with the standards.

This policy is good for the climate: more efficient cars mean lower emissions. But even if it wasn’t a good environmental policy, it is a good policy for the cost of living, and it’s well overdue.

Governments and ministers have discussed introducing these standards for almost twenty years, but no one has been able to do it. It’s time for that change. Australians deserve nothing but the best, and at the moment, they are missing out.

Chris Bowen is the Minister for Climate Change and Energy.