Opposition Leader Peter Dutton has vowed to scrap Labors plan to reduce new car emissions - saving buyers up to tens of thousands of dollars.
A Coalition government will scrap this tax, so Australians can keep more of their hard-earned money when purchasing a new car, he said.
Labors New Vehicle Efficiency Standard came into effect on January 1, this year, with the goal of reducing average new car emissions by 59 per cent over four years.
But new compliance requirements are being enforced on July 1.
That means car makers that sell too many petrol or diesel cars and not enough fully electric or hybrid cars will have to pay penalties, with the costs ultimately passed on to motorists.
Australias top selling car, a Ford Ranger with a diesel engine, would ultimately cost $6,150 more compared with $2,720 for a petrol Toyota RAV4, Federal Chamber of Automotive Industries modelling showed.
These penalties could get stricter each year until 2029 if cars exceeded a carbon emissions cap.
The Coalition argued that within four years, this would see the price of a Ford Ranger go up by $14,400 compared with $9,700 for a Toyota RAV4.
Opposition Leader Peter Dutton has vowed to scrap Labors plan to reduce new car emissions - saving buyers thousands of dollars (he is pictured campaigning with Melbourne Liberal candidate Tim Wilson on Thursday)
Mr Dutton vowed a Coalition government led by him would scrap Labors vehicle emissions policy.
This is a tax on families who need a reliable car and small businesses trying to grow, he said.
Instead of making life easier, Labor is making it harder and more expensive.
Under Labors plan, fully electric vehicles would become cheaper as manufacturers received credits for having an average new car fleet with lower emissions.
The Federal Chamber of Automotive Industries calculated a Tesla Model Y would be $15,390 cheaper under Labors rules while a hybrid Toyota RAV4 would in fact be $3,840 less expensive.
But petrol and diesel cars would cost more as sellers were forced to pay a penalty, with a diesel Toyota LandCruiser going up by $13,250 as vehicle belching out 200 grams of carbon per kilometre.
Labor is planning is planning to reduce average car emissions from 141 grams per kilometre to 58 grams a kilometre by 2029, which would penalise existing hybrid cars unless new engines were developed.
For utes, carbon emissions over four years would fall from 210 grams per kilometre to 110 grams per kilometre, which would force manufacturers to sell hybrid versions instead of diesel models with superior towing capacity.
Australias top selling car, a Ford Ranger (pictured) with a diesel engine, would ultimately cost $6,150 more compared with $2,720 for a petrol Toyota RAV4, Federal Chamber of Automotive Industries modelling showed
Bridget McKenzie, the Coalitions spokeswoman for transport, argued Labors policy would also punish hybrid buyers, with new petrol-electric models sold in 2025 likely to breach stricter rules by 2029.
Labors policy punishes Australian families and businesses who either dont want or cannot afford to buy an EV, she said.
The fact that Labors tax penalises hybrids is proof Labor has got this policy wrong.
By making petrol and diesel SUVs and utes more expensive, Labor will force families to keep older, less efficient and less safe vehicles on the road for longer.
Like Labor, the Coalition supports a net zero by 2050 target.
We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050, but forcing unfair penalties on car makers and consumers is not the answer, Mr Dutton added.
The Coalition is also vowing to halve the 50.8 cents a litre fuel excise to 25.4 cents for a year from July 1 should it win the May 3 election.