The Greens have won a significant victory towards making greener cars cheaper for all Australians.

By negotiating amendments to the Rudd Government's Luxury Car Tax in the Senate, the Greens have ensured that, for the first time, fuel efficient cars will get a tax benefit over gas guzzlers. This is a small but vital step towards a tax system that uses income tax to redistribute wealth and other taxes to achieve social and environmental outcomes.

Christine Milne successfully negotiated amendments to exempt cars with a fuel efficiency of 7L per 100km and a value up to $75,000 from the full value of the tax. In addition, the Treasurer, Wayne Swan, agreed to refer the broader issue of replacing the luxury car tax altogether with a tax based on vehicles' fuel consumption, to the Henry tax review.

You can read the press release with more details here.