Volkswagen Australia fine could jump to $108,000 per car

A little known section of Australian motor vehicle regulations reveals that companies can be fined $108,000 for each individual car on the road with false paperwork.

Just one day after Australia's consumer watchdog warned that troubled car maker Volkswagen could be fined "tens of millions of dollars" if found to make misleading claims, comes an even bigger shock.

A little known section of Australian motor vehicle regulations reveals companies can be fined $108,000 for each individual car on the road with false paperwork.

With an estimated 70,000 diesel cars sold locally by Volkswagen, Audi and Skoda from 2009 to 2015, that puts the fines into the billions in Australia -- if it were to be enforced.

RELATED: VW Australia facing $20m fines
MORE: Is BMW about to join VW scandal?
ALSO: ACCC launches investigation into VW diesel scandal

The Department of Infrastructure and Regional Development, which handles the approval of new motor vehicles, told News Corp Australia: "The Motor Vehicle Standards Act 1989 includes a range of offence provisions related to the importation or supply to the market of new vehicles that do not comply with relevant applicable Australian Design Rules. Court imposed penalties vary (depending on the offence, facts of the matter and whether an individual or a corporation is involved), but could be up to $108,000 per offence."

VW has said the cheat mode was fitted to 11 million diesel vehicles globally across all its brands

Volkswagen is yet to confirm how many -- if any -- cars in Australia are affected by the software that can cheat diesel emissions tests.

However, VW has said the cheat mode was fitted to 11 million diesel vehicles globally across all its brands, including 5.5 million VWs and 2.1 million Audi cars.

While Australia has weaker vehicle emissions laws than the US and Europe, they are not 35 times weaker.

Certain VW cars were found to be 35 times over the emissions limit during independent real-world testing, which led to the global scandal a fortnight ago.

"The Department has been in regular contact with VW Australia and Audi Australia, and will meet with representatives of both companies (on Friday). The Government will consider appropriate actions following this meeting," a statement from the department said.

"It is critical that accurate and comprehensive information is provided to the public, and the Government has made this expectation clear to VW Australia and Audi Australia. The Government expects full disclosure on affected vehicles once all information has been ascertained."

Has the emissions scandal put you off buying a diesel car? Let us know in the comments below.