The Turnbull Government says it is still considering introducing new emissions standards for cars, but insists the plan would not be a 'carbon tax'.
The front page of Sydney's Daily Telegraph reports the government was planning to apply a carbon tax to family cars, which would force up prices by thousands of dollars.
The government was quick to calm down the story, with Energy Minister Josh Frydenberg telling the ABC there would be no carbon tax.
While no decision has been made, the government is still considering new rules that would regulate how much carbon cars can emit.
But it says that's different to a carbon tax.
The SBS Korean program has more.