New Vehicle Emissions Tax to Increase Car Prices, Littleproud Warns

The policy sets pollution benchmarks for carmakers, imposing $100 penalties per gram of CO₂/km that exceeds the limit.

Residents queue up inside their cars for PCR tests at the St Vincent's Bondi Beach COVID-19 drive through testing clinic ahead of Christmas in Sydney, Australia on Dec. 22, 2021. Mohammad Farooq/AFP via Getty Images

Australians already facing cost-of-living pressures are now bracing for further financial strain as the Albanese government’s New Vehicle Efficiency Standard (NVES) takes effect, warns Opposition Leader David Littleproud.

Introduced on Jan. 1, the policy sets pollution benchmarks for car manufacturers, imposing penalties of $100 for every gram of CO₂ per kilometre that exceeds the limit.