A "CARBON tax" on cars that could push up the price of Australia's most popular vehicles by more than $5000 has been proposed by the Turnbull Government.
The Daily Telegraph has obtained the Government's proposal outlining emissions penalties to be slapped on car distributors who fail to meet new fuel efficiency targets.
Under the proposal, from 2022 new cars will be slapped with a surcharge of $100 for every gram of carbon per km they emit over a target figure and fail to offset.
Exclusive modelling by the Australian Automobile Association shows the changes would add $3925 to the price of a Toyota Accent.
Car distributors were shocked to receive the proposed model from the Department of Infrastructure and Regional Development's Vehicle Emissions Team on Monday evening, describing it as more "extreme" than any measures discussed during 18 months of consultation.