Taxpayers to save despite luxury upgrade to fleet of federal MP vehicles

The federal government is replacing its Comcar fleet with BMWs and Toyota hybrids in a move expected to save taxpayers $100,000 a year.

Federal MPs will be driven around in luxury BMWs and hybrid Toyotas in 2020 in a move set to cost taxpayers $100,000 less every year.

The government's Comcar fleet of Holden Caprice sedans is being replaced with Toyota Camry Hybrid and BMW 6 series GT sedans, saving $100,000 a year in fuel and maintenance costs, it was announced on Friday.

Finance Minister Mathias Cormann. Source: AAP

Finance Minister Mathias Cormann says the new cars will be more environmentally friendly, with the BMWs more fuel-efficient, and the Toyota sedans running on a mix of electricity and E10 petrol.

Comcars are used to ferry around federal MPs as well as governmental guests.

Most of the new vehicles are due to hit the road by mid-2020.