New fuel efficiency standard in federal government’s electric vehicle strategy
The federal government will set a fuel efficiency standard for new cars as part of its national electric vehicle strategy announced today.
Climate Change and Energy Minister Chris Bowen said the strategy would help provide Australians with a greater choice of electric cars and encourage the driving of cleaner, cheaper-to-run vehicles.
Australia and Russia are among the only developed countries without fuel efficiency standards.
Details will be finalised in the coming months after consultation with industry but research suggests a fuel efficiency standard could save motorists $519 per year in fuel costs.
On average, new cars in Australia use 40 per cent more fuel than the European Union, 20 per cent more than the US, and 15 per cent more than New Zealand.
Australia lags far behind other countries in electric vehicle sales, with the country’s uptake of the technology about four times lower than the global average.
The Albanese government aims to encourage greater ownership by new measures such as improving recharging infrastructure in Australia.
“This strategy delivers on our commitment to provide greater choice for Australians to drive cars that are cleaner and cheaper to run,” Bowen said.
“This strategy provides the coordination and leadership to drive down costs and improve infrastructure so that we get more affordable and accessible electric vehicles on the market.”
Last year the federal government cut taxes on electric vehicles, saving up to $11,000 a year on a $50,000 electric vehicle.
Transport Minister Catherine King said a fuel efficiency standard would “send a strong message to the global car industry that when it comes to transport technology, Australia will no longer settle for less”.
“More than 85 per cent of all cars sold in the world are subject to fuel efficiency standards,” she said.
“It’s time Australians were offered the same choice.”
