Carbon tax to drive up car cost
A “carbon tax” on cars that could push up the price of Australia’s most popular vehicles by more than $5000 has been proposed by the Federal Government.
Under the proposal outlining emissions penalties to be slapped on car distributors who fail to meet new fuel efficiency targets, from 2022 new cars will be hit with a surcharge of $100 for every gram of carbon per km they emit over a target figure and fail to offset.
Modelling by the Australian Automobile Association shows the changes would add $3925 to the price of a Toyota Accent.
Car distributors were shocked to receive the proposed model from the Department of Infrastructure and Regional Development’s vehicle emissions team last week, describing it as more “extreme” than any measures discussed during 18 months of consultation.