Chris Bowen, the minister for energy and climate change, and Transport Minister Catherine King on Tuesday announced changes to fuel efficiency legislation that will be introduced to parliament on Wednesday.
It comes one month after Bowen unveiled the government's proposal for Australia's first New Vehicle Efficiency Standard, which will come into effect on Jan. 1, 2025.
Under the changes, the average emissions of light commercial vehicles (LCVs) will need to be reduced by 50 percent by 2029 for manufacturers to avoid penalties -- down from the 60 percent target set in February.
New passenger vehicles (PVs) will remain subject to the 60 percent target but some high-emitting large sports utility vehicle (SUV) models will be reclassified from PVs to LCVs.
Speaking at a press conference alongside King and representatives from Toyota, Hyundai, Tesla, the Electric Vehicle Council (EVC) and the Motor Trades Association of Australia (MTAA), Bowen said the government had found a compromise that accounts for the concerns of the industry.
The government promised to implement fuel standards in the lead-up to the 2022 general election but faced pushback from the automotive industry after detailing the policy in February.
The Federal Chamber of Automotive Industries (FCAI) -- the sector's peak body -- argued the proposal would drive the price of some car models up by thousands of dollars.
Tesla earlier in March quit the FCAI over the organization's campaign against the vehicle efficiency standard but Tesla Australia representative Sam McLean on Tuesday said the revised policy was a solid compromise.
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