Car companies will have to pay $100 per gram when they exceed their average fleet emissions, with the so-called "fast-track" option to cleaner cars already ruled out in favour of yet more consultation for a future vehicle efficiency standard.
Under the latest legislative schedule, the controversial new standard will be rolled out in January next year, with Climate Change and Energy Minister Chris Bowen predicting "scare campaigns" ahead on vehicle pricing and availability.
The richly-funded Canberra-based car industry lobby, chaired by Toyota Australia, has already started by "encouraging the Federal government to ensure the affordability and mobility needs of consumers are considered" during the next consultation period, one of eight exhaustive studies, assessments and consultations on the subject matter since 2008.
The latest seeks feedback on its latest two-option impact analysis which the federal government says "helps policymakers consider how proposals affect businesses, individuals and community organisations, as well as broader economic and other impacts".
This comes 10 months after a previous comprehensive consultation, which attracted hundreds of submissions, and this latest move now potentially offers the government the opportunity to stretch the timeline on this contentious legislation even longer.
The car industry wants the slowest possible phase-in of efficiency standards to prevent disruption to its business model because for most importers, future vehicle plans are already locked in for the next two to three years and any change is costly and difficult to implement given the small size of Australia's new vehicle market and that our country is right-hand drive amid globally predominantly left-hand drive manufacturing.
The Federal Chamber of Automotive Industries, led by the dominant Toyota franchise which controls around one fifth of Australia's new vehicle sales, initially wanted top-selling twin cab utes calculated differently from generally lower emission passenger cars, together with concessions for hybrids (which have an engine and a battery).
But this won't happen.
"It's a requirement on car manufacturers to improve the quality of the efficiency of the fleet they send to Australia," Minister Bowen said.
"On average they'll have to pay $100 a gram they go over that [fleet average emissions]. But we expect, as is the case right around the world, companies to comply with the law. That's what they do.
"They don't like the bad press that comes with not meeting their fuel efficiency standards. That's the way the system works in all the comparable countries."
The stated aim of a new standard is to "catch up" with USA's average vehicle emissions intensity by around 2028. However, both the US and Europe have a much different vehicle fleet make-up to Australia's, and strong EV-switching incentives.
As a support mechanism in managing the potential political fallout heading its way, the Federal government has also funded a $14 million "real world" tailpipe emissions program conducted by the Australian Automobile Association, to compare laboratory emissions with those recorded out on the road.
The results have already revealed alarming anomalies - and the worst is yet to come. By the time the final impact analysis consultation phase is over, the public will have a clear picture of just how "dirty" our most popular vehicles really are.
Climate change groups and electric vehicle supporters are all in favour of progress in an efficiency standard. None have been critical of the further delay.
