New emissions laws for 2013

That's when a tougher new emissions standard, known as Euro 5, comes into effect. The first Euro 5-compliant cars are already in showrooms but the Federal government has now confirmed a seven-year phase-in program for all vehicles - cars, utes and four-wheel drives including those built in Australia - from November 2013.

It is claimed the cleaner generation of upcoming vehicles will provide a big bonus with only minimal impact on showroom stickers, while saving more than $1.5 billion on health spending for smog-related illness over the next 20 years. "The savings in terms of our environment, the health of our kids, is much greater than that minimal increase in cost," says the Minister for Transport, Anthony Albanese. He also believes there will be no impact on the local makers, who are all facing major model updates soon - including a four-cylinder engine for the Ford Falcon - with extra investment required between 2015 and 2020 for future model extensions.

"This is a balanced and realistic outcome, ensuring that Australian vehicle emissions will be aligned with leading international standards," says the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar. "At the same time, the planned phase-in of these regulations recognises the practical impact on existing investments and the model development cycle." Meanwhile, new cars on Australian roads continue to get greener, according to new figures on carbon dioxide emissions from the National Transport Commission. They show a 15 per cent fall in CO2 emissions from new motor vehicles over the past eight years. All cars in showrooms must now display a sticker with their CO2 emissions for ever kilometre driven, helping shoppers to make the greenest choice.