Anthony Albanese 's New Vehicle Efficiency Standard means carmakers will face stiff penalties if they sell too many large petrol and diesel vehicles in coming years, as part of Labor's plans to slash ute and 4WD emissions by 47 per cent by 2029.
The Federal Chamber of Automotive Industries (FDAI) estimates the new tax will add $13,250 to the price of a Toyota LandCruiser and $6,150 to a Ford Ranger.
John Cadogan, a motoring writer with Auto Expert, slammed the scheme as a 'stealth tax' that would fail to make Aussie drivers embrace electric cars.
'Ordinary car buyers simply are not queuing up to buy EVs,' he said.
'Well done all concerned for assembling a system tailor made to deliver cars that statistically nobody wants.
'Essentially, carmakers have to keep lowering the average CO₂ levels emanating from the exhausts of the vehicles they sell or pay the price - I mean tax.
'It's a tax on your next HiLux or Ranger basically.'
Under the new rules, hybrid or electric versions would have to replace the diesel variants in the range if carmakers wanted to avoid paying steep penalties.
But the new rules are hardly enticing Australian motorists into buying more fully electric cars with utes making up four of the top 10 vehicles sold in June, and SUVs making up the rest.
The rules aren't boosting the sales of fully-electric cars either, with Tesla Model 3 sales diving by 36 per cent to 1,132 in June, compared with a year earlier , data from the Electric Vehicle Council showed.
This was less than half the 2,243 Toyota LandCruisers bought in June.
The Ford Ranger was Australia's No.1 bestseller again in June, but its 6,293 sales marked only a small 0.1 per cent increase, compared with the same month in 2024 , even though it's now available with a plug-in hybrid version.
The Toyota HiLux with 6,195 monthly sales, and the Isuzu D-Max, with 3,119 ordered, are both mainly available as diesels.
Hybrid and electric versions of both models are not yet sold in Australia.
The BYD Shark 6, however, came in at fourth place with 2,993 sales, and it's only available as a plug-in hybrid.
The Australian-designed but Thai-built Ford Everest, based on the Ranger platform, was the most popular SUV with 2,705 sold, marking a 19.3 per cent increase compared with a year ago .
Other SUVs on the top 10 list included the Mazda CX-5 (2,582 sales), Hyundai Kona (2,484 sales), Toyota RAV4 (2,421 sales) and Hyundai Tucson (2,332 sales).
Despite the new emissions standards, more big utes are coming to Australia next year with Kia now taking orders for the new Tasman with a turbo diesel engine.
MG is also launching the U9 ute later this year, with diesel and hybrid engines.
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