The Australian Greens will support new legislation aimed at reducing vehicle emissions in a deal brokered with the federal government.
Fuel-efficient cars
The agreement includes measures to promote fuel-efficient cars and electric vehicles (EVs), along with changes to taxes on offshore gas.
A controversial provision allowing gas projects to bypass environmental regulations will also be abandoned under the deal.
On Thursday evening, the Senate passed the bill establishing the New Vehicle Efficiency Standard without amendments, cementing it into law.
This bill mandates that car manufacturers must reduce emissions for new vehicles, enforcing annual emissions limits and imposing penalties for non-compliance.
These limits will decrease each year, compelling manufacturers to increase the sale of fuel-efficient and lower-emission vehicles.
Tax reform passed
The Greens also consented to pass reforms to the Petroleum Rent Resource Tax (PRRT), contingent on the government scrapping an amendment that could expedite gas project approvals.
This amendment, part of a broader bill, was seen as potentially undermining environmental protections by allowing the resources minister to alter approval processes for gas projects.
Greens environment spokeswoman Sarah Hanson-Young declared the controversial amendment effectively defeated, saying: "We've killed the resource ministers' desire to bypass environment laws, we've killed the gas companies' desire to bypass environment laws."
Party leader Adam Bandt echoed this sentiment, asserting there was no parliamentary pathway for reintroducing these amendments, despite previous indications of support from the Coalition.
The federal government, seeking industry support, had earlier diluted its proposed vehicle efficiency rules.
In March, Climate Change Minister Chris Bowen and Transport Minister Catherine King announced a delayed implementation date of July 2025 and a more gradual emissions reduction trajectory.
The Albanese government is planning to increase the adoption of EVs in Australia by promoting consumer choice, in the hope that Australians will voluntarily transition to more environmentally friendly vehicles.
Meanwhile Toyota chief executive Matthew Callachor dismissed concerns that these measures would act as a "tax on utes", countering rhetoric from the Coalition.