The Federal Government has had a win of sorts with across-the-board support for its new vehicle pollution standards aimed at reducing hazardous smog.

Under the standards announced by Transport Minister Anthony Albanese on Saturday, all new cars, utes and four-wheel drives sold in Australia will need to abide by strict pollution controls.

Car makers will be forced to cut three major pollutants known to produce smog, which can cause health problems such as cardiovascular and respiratory illness.

They will need to make a 50 per cent cut to the emission of hydrocarbons, a 70 per cent cut to oxides of nitrogen and a 90 per cent reduction on particulate matter.

Mr Albanese says the technology required to cut the emissions is already in place and being used by a number of car manufacturers.

He concedes the implementation, particularly for diesel vehicles, could see the cost of cars increase, but says this is more than offset by the public health benefits.

"This will result in a one and a half billion dollar saving to the national health budget over two decades," he said.

He says the tough new standards will lead to cleaner skies, and insists they will not impact on jobs.

"What this proposal does is give them certainty to invest for the future to protect those jobs," he said.

"This is a real win whether it be for Ford at Geelong or Holden or other manufacturers who are here, this is a win for the industry."

The Government's announcement has been given the thumbs up from industry and the Opposition.

The Federal Chamber of Automotive Industries has endorsed the plan, calling it a balanced and realistic outcome.

It agrees the cost impacts will be very minimal.

And Opposition Environment spokesman Simon Birmingham has also given in-principal support.

"This is a sensible measure if it makes the air we breathe a little safer for everybody then that's obviously a good thing," he said.

Mr Birmingham says the scheme seems workable, unlike a carbon tax, which would lead to a rise in the cost of electricity.

"In terms of the cost impact we'll be looking at that and consider it carefully," he said.

"But a new car is a little bit of a luxury, electricity is something that you need all the time, every day and that of course is a price rise that all Australians would feel."

The phase-in will begin in 2013, while the compulsory scheme will be fully implemented in 2018.

- ABC/AAP