New Emission Standards to Hit Australian Car Market in 2025
Australia is gearing up for stricter emissions standards for new petrol and diesel vehicles, kicking in from 2025. These updated rules, known as ‘Euro 6d,’ aim to bring Australia in line with Europe and other developed nations. However, the new standards could mean some popular models might vanish from showrooms if they can’t meet the cleaner engine requirements.
Australia’s existing emission standards date back to 2009, while Europe adopted more stringent standards a decade ago. The quality of Australian petrol has been among the dirtiest in the developed world.
The Euro 6d standards were introduced in Europe in 2021 and are similar to or even tougher than emission protocols in other developed markets.
The new regulations will affect new cars, SUVs, and light commercial vehicles (like utes and vans) introduced from December 2025. All models on sale, regardless of their launch date, will need to comply by 2028. These changes are separate from a potential Fuel Efficiency Standard under development by the government.
Car manufacturers are invited to provide input on the proposed standards, with one option suggesting average fuel-efficiency targets to avoid fines. This model is similar to the one used in Europe, primarily based on a vehicle’s CO2 emissions.
Advocates for electric vehicles (EVs) believe these mandates will push car manufacturers to bring more zero-emission vehicles to Australia, thereby lowering average emissions and making it harder to sell high-emission utes and four-wheel-drives.
However, some in the car industry worry this could disadvantage those who rely on heavy-duty utes and four-wheel-drives and are not ready or able to switch to electric vehicles.
From December 2025, all new cars, SUVs, and light commercial vehicles introduced in Australia will need to meet Euro 6d standards. Existing models have until 2028 to comply.
Currently, over half of the new petrol- and diesel-powered vehicles sold in Australia are only certified to the Euro 5 standard. This includes fuel-efficient models like the Toyota Corolla hybrid, along with popular utes such as the Toyota HiLux, Ford Ranger, and Isuzu D-Max. Four-wheel-drives, like the Toyota LandCruiser 300 Series and Jeep Wrangler, are also in this group.
While many of these vehicles have Euro 6-compliant versions available overseas, some, like low-volume sports cars and budget hatchbacks, may not survive the new rules as Euro 6-ready versions aren’t available.
The Australian car industry has not met its own voluntary emissions targets for the past three years, and performance has worsened as sales of utes and 4WDs have increased.
Alongside the emission standards, the government is planning to reduce the amount of aromatic hydrocarbons in 95-octane premium unleaded fuel, while 91-octane and 98-octane petrol will remain unchanged. This follows previous plans to cut the amount of sulfur in all types of petrol.
The mandate for low-sulfur petrol will be delayed to December 2025, from the originally planned 2024 date, to simplify the transition for fuel suppliers and customers. This is ahead of the 2027 introduction planned by the previous government.
The government estimates the changes will save $6.1 billion in health and fuel costs by 2040, protecting Australians from harmful pollutants. They cite that noxious emissions contributed to over 1700 deaths in 2015.
Minister for Infrastructure and Transport, Catherine King, stated that the changes are part of offering cleaner and cheaper-to-run cars, addressing transport costs for Australian families and businesses. The government will collaborate with industry and consumer groups to communicate these changes to motorists before the new fuel standards begin.
Tony Weber, from the Federal Chamber of Automotive Industries, stated that this is a necessary step, noting that car manufacturers have been calling for improved fuel quality standards for over a decade.
